The Shift Away from Fizz: How Non-Carbonated Drinks Are Taking Over
"The shift toward still drinks is occurring across both alcoholic and non-alcoholic categories." – Randy Burt, AlixPartners
The beverage industry is undergoing a significant transformation. Driven by changing consumer preferences, particularly among Generation Z, the market is pivoting away from carbonated drinks toward still, non-carbonated alternatives.
Sales growth for flavored seltzers and hard seltzers has slowed, while non-carbonated options—such as hard iced teas, premixed cocktails, and still flavored waters—are rapidly gaining market share.
The Numbers Tell the Story
The data from Circana, covering the 52 weeks ending April 26, highlights a clear divergence in the alcohol market:
- Hard Seltzers (Malt-based): Volume decreased by 1.1% compared to the prior year. Once-dominant brands like White Claw are feeling the pinch.
- Ready-to-Drink Cocktails: Volume surged by 46.4% in the same period.
This growth is being led by a new wave of brands, including Surfside, Sun Cruiser, BuzzBallz, and Cutwater Spirits.
The Rise of Surfside and the "Still" Revolution
One of the standout success stories is Surfside, a vodka-based hard iced tea launched in 2022 by Stateside Brands. By 2024, it had become the fastest-growing alcohol brand in the U.S., according to Nielsen IQ data. The brand’s customer base skews female.
Stateside co-founder Clement Pappas attributed the explosive growth to "pent-up demand for non-carbonated options." He also commented on the product's philosophy, noting that "carbonating iced tea seemed inappropriate."
"There was pent-up demand for non-carbonated ready-to-drink options." – Clement Pappas, Stateside Brands
Why Gen Z is Ditching the Bubbles
Industry analysts point to a clear generational shift between Gen Z and millennials. Scott Scanlon of Circana observed that consumers are jumping to newer products like Surfside and Sun Cruiser, describing this as a fundamental generational shift in taste preferences.
Gen Z consumers are more likely to order tea-based beverages and are actively moving away from carbonated drinks. The driving factors include a focus on wellness and functionality. Carbonation is increasingly associated with negative side effects such as bloating, burping, and potential wear on tooth enamel.
The Non-Alcoholic Side is Following Suit
This trend is not limited to alcohol. While some carbonated drinks like Poppi and energy drinks Celsius and Ghost still show growth, the market is adapting.
In 2025, Celsius expanded its fizz-free line. Celsius Chief Brand Officer Kyle Watson explained the move: "In focus groups, consumers said they do not like drinking sparkling beverages, preferring smooth flavor experiences for functional drinks." He noted that fizz-free flavors specifically appeal to Gen Z and women, offering a smoother drinking experience.
Similarly, Michael Pengue of Hint commented that the shift away from bubbles could boost sales for their still flavored water, which offers superior drinkability and sensory softness.
"In focus groups, consumers said they do not like drinking sparkling beverages, preferring smooth flavor experiences for functional drinks." – Kyle Watson, Celsius
The Can is Winning
One of the more subtle shifts in the industry is in packaging. Despite the lack of carbonation, many new still drinks are packaged in aluminum cans, the traditional home of fizzy beverages.
Ball CEO Ronald Lewis summed up the packaging trend succinctly: "The can is winning."
A Broader Context
This current movement mirrors an earlier consumer shift from sugary sodas to sparkling waters. Now, the cycle is turning again. The modern consumer, particularly Gen Z, is seeking novelty, prioritizing wellness, and actively avoiding the discomfort that carbonation can cause.