How can soft drinks win back Gen Z?

Classic carbonated drinks are facing an uphill battle with Gen Z. 

As The Grocer revealed in its Focus On Soft Drinks, this young generation are turning their noses up at classic flavours and chemical-laden ingredients lists, with many leading brands beginning to fall out of favour with this demographic.

Mintel research shows that more than half (57%) of young consumers say their concerns about ultra-processed foods (UPFs) have made these traditional fizzy options a far less appealing option, triggering volume sales declines at some of the category’s seemingly most impenetrable names. 

There’s an urgent need for carbonated soft drinks (CSDs) to modernise if they don’t want to lose out on Gen Z’s loyalty, believes Carlotta Cattelani, head of marketing, UK & Ireland at energy drinks brand Celsius.

“Gen Z are looking for brands that reflect their value and lifestyle,” she says. “There’s way more interest from this generation in trying new and exciting options and really making their mark on the category. They’re not accepting what previous generations may have considered ‘good enough,’ they’re testing the market and pushing the boundaries on innovation.” 

But in the process of pushing those boundaries, what exactly are Gen Z looking for? And how can CSD brands evolve to meet those needs?  

“Many younger people are looking for beverages that offer functional benefits, such as added vitamins, adaptogens, or prebiotics, rather than empty calories”

Riani Kenyon, behavioural analyst, Canvas8

Finessing flavour and functionality 

From a product perspective, Gen Z wants more than a quick sugar hit, points out Riani Kenyon, behavioural analyst at Canvas8. “Many younger people are looking for beverages that offer functional benefits, such as added vitamins, adaptogens, or prebiotics, rather than empty calories,” she says. “At the same time, there is a sense of flavour fatigue around traditional offerings; legacy flavours like cola or lemonade can lack novelty for a generation that embraces experimentation.” 

This is fuelled in part by a shift in their consumption habits. A fifth of Gen Z don’t drink alcohol at all, found a 2025 study by Greene King, compared to a 12% average across the population, with many more cutting back on their intake. And these sober curious spenders are actively looking for enticing alternatives at pubs, clubs and festivals. 

“Young UK consumers are drinking less alcohol and fewer traditional fizzy drinks, but they’re certainly not drinking less overall,” adds Kenyon. “Instead, they’re building more sophisticated and diverse drinking repertoires, with options tailored to different times of day and social contexts.”

New UK entrants are adapting to these behavioural shifts with contemporary CSDs that combine functional benefits and a more sophisticated palate. That was front-of-mind for Celsius when it rolled out its range in the UK last year, explains Cattelani. “What we’ve really seen is that Gen Z and Millennials are really seeking far more than just lower sugar,” she says. “They want a drink that also aligns with their health-conscious, active lifestyle.”

The company’s energy drinks have been formulated to provide a natural energy boost without a hint of sugar but also packed with seven essential vitamins, she says. And rather than rely solely on classic flavours its core range is infused with white peach, mango and passionfruit to add the innovativeness that Gen Z are crying out for. 

The fast-growing alcohol-free occasion has also been integral to its early marketing efforts, she adds, with a big focus on showing up at classically alcohol-fuelled events that now have a clear demand for something teetotal, but no less tempting. The brand has already made a point of partnering with music festivals in its more established US and Nordic markets and plans to do exactly the same here in the UK over the summer months. 

“The 18-to-34 age bracket is shifting from passive consumption to more intentional lifestyle driven moments and occasions, such as fitness, socialising, but also alcohol-free partying,” says Cattelani. Its festival collaborations to date have been “incredibly successful,” she says, “boosting trial, encouraging sharing on social platforms and also brand affinity. That’s a momentum we’re looking to build on as we head into summer here in the UK.” 

Building brands that resonate 

Product is only one part of the equation when it comes to reconnecting Gen Z with the CSD category though, points out Guy White, CEO at consumer goods innovation specialists Catalyx. Perceptions of a brand are also crucial. 

“Many legacy soft drink brands just don’t feel relevant to younger consumers anymore,” he says. “Gen Z are drawn to brands that feel authentic, socially conscious, and aligned with their values. If a brand is seen as performative, inauthentic, or slow to change, it’s tough for them to make that connection – no matter how strong the name recognition is. 

“This is a generation that demands authenticity, so brands need to be genuinely innovative – not just in their products, but in how they present themselves and communicate.”

Rather than discovering brands through mass media channels like TV or in-store promotions, this generation are glued to social platforms and heavily swayed by what their favourite influencers are saying, doing and, well, drinking. In fact, 69% of Gen Z consumers say they’ve discovered new products or brands through social media influencers, according to Statista. It’s only becoming a more important channel too. Research by Sprout Social in 2024 found that nearly 40% of Gen Z consumers say they trust influencers more than they did a year ago. 

All which means legacy brands that rely on their tried-and-tested marketing mix will struggle to create cut-through. 

“We’re focused on more than presence and want to create something that truly resonates”

Carlotta Cattelani, head of marketing, UK & Ireland, Celsius

Though Celsius says it does continue to invest in traditional marketing channels, its influencer marketing strategy is a cornerstone of how it builds connection with this younger audience, says Cattelani. “We really need to speak their language,” she says. The brand has already created a roster of major athlete partners, including footballer Declan Rice, England rugby player Tom Curry and Lioness Georgia Stanway, as well as lifestyle creators and also micro-influencers. “We’re really building a team of influencers and ambassadors that can speak authentically to the followers of our brand.”

In an era of social scepticism, it’s incredibly selective about who it partners with, she adds. 

“We’re looking for people who are really inclusive, who have a holistic, healthy approach to their lifestyle, who are fun and outgoing too, with a focus on communicating positive messages to their audiences.” 

Oh, and they also need to be genuine fans of the brand. “We would never partner with someone that doesn’t believe in who we are,” she adds. “We’re focused on more than presence and want to create something that truly resonates.” To make absolutely sure of credibility, it skips working with agencies entirely and instead works with influencers directly to check the fit feels organic and to build a longer-term relationship, rather than shell out for a one-off post that feels contrived.  

Modernise – or move over 

If at one time legacy CSDs could afford to get complacent, confident that brand reach and awareness would be enough to see them through, then they clearly didn’t bet on Gen Z. 

Lifestyle-driven, digitally-savvy and unimpressed by a big name, this generation is pushing for soft drinks that deliver the whole package: functionality, innovation and authenticity. 

And if market leaders don’t evolve to meet their demands, they’ve got no problem reaching for one of a raft of challengers that can. 

Watch this space to learn more about how Celsius plans to continue to make waves in the UK - https://uk.celsius.com/