HRAGlobal_DrinksTrendReport_2026

TheTrendsShapingthe NextWaveofGrowth

“Shelfspacehasneverbeen hardertowin—oreasiertolose.If adrinkdoesn’tearnitspurpose,it won’tearnitsplace.”

2026 is emerging as a landmark year for the drinks industry Consumers are demanding more from the category than ever before What were once separate drinking occasions are blending together, and the line between refreshment, indulgence, moderation and wellness is becomingincreasinglyfluid.

Shoppers expect drinks to deliver flavour andfunction,valueandexperience,health and enjoyment often simultaneously The rise of low/no alcohol, adult soft drinks, better-for-you energy drinks and functional cocktails shows how expectations are shifting Consumersareseeingdrinksaspart ofthelifestylethey’rebuilding

AFOREWORD FROM....

HamishRenton CEO HRAGlobal

Meanwhile, the forces shaping the industry are accelerating. AI is transforming how trends are identified and scaled The sugar tax is pressuring brands and manufacturers to reformulate And new ingredient technologies, including precision-fermented proteins and next-generation sweetening systems are expandingwhat’stechnicallypossible

Against this backdrop innovation cycles are tightening, brand stories matter more than ever, and routes to market are becoming increasingly diverse It is a market where agility wins and where distinct propositions, backed bystrongexecution,canscalequickly

ManyoftheinsightsthroughoutthisreportareinformedbyTheTaste Collective,ourproprietaryconsumerpanelofover3500engagedconsumers. Spanninggeographicanddemographicdiversity,thepanelprovidesvalid reliableconsumerresearchacrossallfoodanddrinkcategories

For over 16 years, HRA Global has helped drinks brands, manufacturers and retailers turn change into opportunity translating emerging trends into scalable, commercially robust propositions. Our heritage is built on handson delivery across NPD validation, consumer and sensory research, partner andcontractmanufacturermatching,categorystrategy,andgo-to-market optimisation.

AsacertifiedBCorp,we bring a long-term, responsible growth lens to the category. We help clients balance flavour, function and performance with sustainability, reformulation and credible brand purpose ensuring innovation is not only successful today, but resilient and relevant for the future.

DrawingonHRAGlobal’sprojectwork,proprietaryconsumerresearch,buyer interviews and continuous category tracking, this report outlines the key trendswebelievewillshapethedrinkslandscapein2026andbeyond.Most importantly, it highlights the commercialimplications for brands, contract manufacturers,retailersandfoodserviceoperatorslookingtogrowinafastmovingandincreasinglycompetitiveenvironment.

01

TheAgilityAdvantage pg.6

AIAcceleration pg.8

TheScienceBehindtheShelf pg.10

IntentionalDrinking pg.15

Health2.0 pg.14

FlavourFrontiers pg.17

DessertinaCan pg.20

Packagingfor2026 pg.22

HydrationUpgraded pg.24

TrendBlending pg.26

The fictional Matcha Mood+ illustrates a fundamental shift in beverage innovation Todays dominantforcesindrinksarecollidinginwaysthey never have before function, flavour and mood allpackedintoonebottle.

WhatFollows

Butdoesthisleveloftrend-stackingcreateclarity or chaos? Are brands overwhelming shoppers, or simplymeetingagrowingdesirefordrinksthat“do itall”?

In the pages that follow we break down each of these forces examining how function, flavour and mood are reshaping the drinks category We explore what's driving this convergence, where the real opportunities and risks lie, and what it means for brands, manufacturers retailers and foodservice operatorsnavigatingthisincreasinglycomplexlandscape.

1.TheAgilityAdvantage

The drinks category is undoubtedly one of the most innovation-intensepartsofFMCG.Thepaceisunmistakably fast new brands, formats and flavours are entering and exiting the market at a rate the category has never seen before. For many consumers, especially younger adults discovery is happening long before the fixture as social platformsareshapingwhatpeoplelookfor.

This environment plays to the strengths of agile challenger brands Thosethatcanmovequicklyandarticulateaclear purposearedemandingconsumerattention Theirabilityto bringnewideastomarketatspeedgivesthemastructural advantage over more established portfolios, where longer decision cycles and legacy guardrails can slow response times

At the same time private label is levelling up not just on price but on innovation itself Retailers are upgrading their offer in flavoured waters, functional drinks, adult softs and low/no alcohol, often matching and sometimes outpacing branded players on both design and credibility This compresses the window in which brands can build equity before facing direct own-label competition

Theresultisadrinksmarketwhereinnovationisessential but it must be targeted relevant and executed with precision Speed matters, story matters and distinctiveness matters Thebrandsthatsucceedwillbethosethatbringall threetogetherconsistently.

FROMINSIGHTTOACTION

ForBrands:

Edit ruthlessly: Prioritise a tight core of high-velocity SKUs and one or two ontrend “test bed” lines rather than a sprawlingflavourmatrix

Think platform, not product: Build modular bases (eg one hero energy or hydration base with rotating flavours) to makeNPDfasterandcheaper

Authenticity first: Origin stories, ingredient provenance and visible founders matter more than ever but big brands can close the gap with transparency (how it’s made who makes it why it exists), showcasing real teams andsuppliers

ForFoodService:

ForRetailers:

Curate for clarity: Avoid overloading fixtures use benefit-led segments (Hydration Energy Gut Health, Low/No, Indulgence) to help shoppers navigate ranges

Make space for rotation: Use trial bays andseasonalwindowstotestchallenger brandswithoutcommittingtolong-term listings

De-riskinggrowththroughsmarterpartnerships

It’snotuncommonformanufacturersto findbythetimetheyhaveinvestedinproduction assets,growthtrajectorieshaveslowedandtheyare lasttoacrowdedmarket

ThisiswhereM&A,contractmanufacturing& licensingarrangementscanofferrealopportunities asmanufacturersandbrandsareabletomakeuse ofexistingassetsalreadyinaction,orbrandsthat alreadyhaveacustomerbase

Toavoidcostlymissteps,partnerchoiceand expectation-settingshouldbeunderpinnedby robustanalysisandduediligence

Think in missions, not categories: Drinks are well-placed to serve needs according totimeofdaye.g.morninguplift afternoon hydration,eveningwind-down.

Use menus and staff to build stories: Foodservice has an edge in educating consumers about functional benefits and novelingredientsatpointofpurchase.

Trial fast, rotate often: High-velocity environments (gyms universities offices) can trial challenger brands and emerging formatswithminimalrisk

Upgrade beyond traditional softs.

Consumers expect adult-leaning flavours functional boosts and more premium cues especiallyasalcoholmoderationgrows.

Act fast on data: Delist quickly when innovation doesn’t convert to sales With trends moving at speed, shelf space muststayfluidandresponsive

ForContractManufacturers:

Design for agility: Invest in lines and pack formats that can switch flavours and pack artwork quickly (eg sleeves, digital print), and in small-to-mid run capability

GuardagainstSKUsprawl:Pushbackon “just one more flavour” when it complicates production – offer structured flavour ranges and seasonal windowsinsteadofpermanentlistings Co-development as a service: Offer formulation, claims and packaging advisory as part of the pitch to help clientslaunchfasterbutsmarter

2.AIAcceleration:

Fast,ButNotAlwaysSmart

AI is becoming well embedded across the whole FMCG industry touching everything from insight generation to execution Brands are using it to scan social platforms at scale identifying early trends in flavours, formats and functional claims longbeforetheyshowupinEPOSdata

Marketing teams are applying AI to optimise audience targeting creative testing and spend allocation, tightening the gap between idea and impact And increasingly, businesses are using AI tools to run commercial “what if” simulations testing scenarios around pack sizes, pricing tiers promotion plans and range composition before makingreal-worlddecisions

But with this capability comes risk As more organisations plug into the same publicly available datasets, models and trend dashboards, the industry faces a growing threat of convergence: multiple brands chasing the sameflavour thesamebenefitorthesameTikTok trendatpreciselythesamemoment Theresultis notcompetitiveadvantagebutcategorynoise

Most importantly AI cannot yet replace sensory judgement technical feasibility or lived category experience In a market where taste remains the ultimate differentiator and formulation constraints matter, human expertise and feedbackisstillessential.

FROMINSIGHTTOACTION

ForBrands:

UseAItofindsignals,notanswers:LetAI flag emerging ingredients, hashtags and need states – then validate with qualitative research sensory panels and properconsumertesting

Protect distinctiveness: Feed your proprietary data (review text DTC feedback, sensory panels) into your modelstoavoid“me-too”outcomes

ForRetailers:

Use AI to sharpen range planning: Combining loyalty/app data with AI can highlight localised trends and missionled gaps (eg, “energy for commuters”, “hydrationafterthegym”)

But keep human judgement central: Taste validation and shopper behaviour insight remain essential AI alone can over-index trends that don’t convert instore

Guard against sameness at fixture:

Multiple suppliers may pitch nearidentical NPD; retailers must curate to avoid“trendclutter”

ForContractManufacturers:

Offer AI-ready data: Provide structured quality, yield and cost data so clients can easily plug manufacturing realities intotheirscenariomodels

Develop ‘AI-friendly’ briefs: Translate clients’ AI-generated concepts into technicallyviableformulationsandpack formats

Accelerate test-and-learn: Use AIsupported prototyping, rapid flavour iteration and small-batch digital workflows to shorten the path from concepttovalidatedsample.

ForFoodService:

DeployAIformenuoptimization:AI can surface which drink benefits resonate by time of day, venue type or customer profile usefulforrotating“hero”drinks Maintainexperientialqualitycontrol:In foodservice, flavour and consistency matter more than anywhere else; humans must remain the final judgement.

Watch for lookalike launches: If suppliers rely heavily on AI trend mining foodservice operators risk carrying overlapping products unless they curate deliberately

3.TheScienceBehindtheShelf

A new wave of technologies is reshaping drinks changing both what brands can make and what consumers now expect This shift is being pulled as much by consumer demand as by technical possibility

Meeting these expectations is far from simple and increasingly requires more sophisticated formulation techniques.Next-generationsweetenersaredelivering cleanertastewithfewercompromises.

Fibre and prebiotic systems are pushing gut health into the mainstream but creating real formulation challenges And stimulant alternatives botanicals, amino acids nootropics are redefining “energy” far beyondcaffeine.

Indairy,precision-fermentedproteinsaremovingout of labs and into pilot-scale drinks, offering similar functionality without traditional production. Global players are already testing animal-free whey powdersandRTDs

Together these forces are pushing drinks into a new more technical era one where formulation expertise,scientificliteracyandoperationalagilitywill separate the brands that lead from the brands that follow

FROMINSIGHTTOACTION

ForBrands

Educate consumers clearly: Emerging ingredients only work commercially when thebenefitissimpleandbelievable

Use science to justify premium pricing: Evidence-backed performance claims can supporthighermargins

Invest in technical capability: Sweeteners fibres stimulants and novel proteins demand stronger formulation skills to avoid stabilityortastecompromises

ForFoodService

Differentiate with function: Hydration energy, gut health and recovery drinks offer margin and relevance beyond traditionalsoftdrinks

Expand low/no alcohol lists: Improved alcohol-free fermentation supports more sophisticatedzero-alcoholmenus

ForRetailers

Curate by benefit: Consumers need help navigating science-led products; grouping byfunctionincreasesclarityandconversion

Support premium tiers strategically: Advanced hydration gut health and performance lines can lift category value whenpositionedwell

Champion packaging innovation: Prioritising sustainable formats aligns with shopperexpectationsandbrandstrategies

ForContractManufacturers

Differentiate through expertise: Knowledge of fibres, prebiotics, precision-fermented proteins and advanced electrolytes will be a key commercialadvantage

Provide solutions, not just capacity: Brands will prioritise partners who can troubleshoot formulation and deliver stable,scalablerecipes

Increase operational flexibility: More formats and shorter runs demand adaptablelinesandfasterturnaround

Strengthen compliance support: Clear documentation and regulatory guidance will become more important astechnologiesevolve

4.IntentionalDrinking: TheReframingofLow&No

FROMINSIGHTTOACTION

Alcohol moderation is becoming mainstream, with 47% of consumers intending to reduce their alcohol intake in 2026.¹ This isnt complete abstinence it’sarebalancing particularlyamong Gen Z and younger Millennials who are becoming moreselectiveaboutwhenandwhytheydrink

Drinkschosenbyoutcome,notformat

At the same time, there is a clear shift towards intentional drinking. An increasing number of consumers are choosing beverages based on the state they want to achieve from Energise and Focus to Relax Socialise and Unwind rather than simplywhetheradrinkcontainsalcoholorcaffeine Low&noalcoholisacorepartofthemix

As consumers rebalance their alcohol intake lowand no-alcohol drinks are an obvious choice, selected by 35% of alcohol reducers.¹ However, low- and no-alcohol is no longer just a substitute for alcohol it is a category in its own right For manyoccasions socialising,midweekunwinding, lunch, or post-work drinks 0% lager, alcohol-free beer and spirits deliver the taste, ritual and social cuesconsumerswant withoutthedownsides

This shift is already visible in demand signals 37% of consumers are seeking drinks that support brainfunctionorfocus, making “how it makes me feel”aprimarydecisiondriver Functionallanguage is no longer niche: 25% are interested in ingredients such as CBD, and 22% say they are familiar with nootropics and adaptogens, indicating growing mainstream literacy of functional cues and the impact on mood and mentalstate¹

Theobromine – a caffeine alternative

Touted as a longer-lasting and milder energy source that doesn’t cause jitters or withdrawal symptoms, theobromine, present in cacao, is increasingly being used as a coffee alternative.

However, as we ’ ve seen in recent months, an over-reliance on cacao leaves great commercial exposure to the commodity price. Therefore, whether this is viable as a commercial RTD is another question.

InsightfromHRA

FunctionWhereItMatters

Therearerealopportunitiesinfoodservicefor functionaldrinksbrands Gyms workplaces, universities travelhubsandleisurevenuesare idealforfunctionaldrinkstiedtoproductivity recoveryandenergymanagement

Butfoodserviceisacomplex,high-volume channel winninghererequirestargeted propositions clearuse-casethinkingand expertguidancetoensuretherightformat, dosingandpositioningforeachenvironment.

47%ofconsumersintend toreducetheiralcohol intakein2026.

ForBrands:

Designfordailyrituals: Anchorproducts to clear moments in the day (morning uplift, evening wind-down) to build habit formationandrepeatpurchase

Tiertheoffer:Createladderssuchas

Everyday support: low-stimulation, low-sugar broadlyappealing

Performance formats: higher caffeine higher electrolytes stronger dosingforspecificmissions

Ownabenefit,notaformat: Consumers increasingly buy outcomes (focus, calm, recovery) not ingredient lists. A strong benefit-led brand architecture helps future-prooftherange.

ForRetailers:

Create clearly signposted “Functional Drinks” zones: Group by benefit Energy & Focus, Immunity & Defence, Calm & Sleep, Hydration, Gut Health not necessarily by base (water, dairy, juice) This reflects how shoppers are actually choosing Use trial bays to surface newcomers: Shots, stick packs and novel functional RTDsbenefitfrom“tryme”placementnear tillfixturesormorningmissionzones

Integrate into meal deals: Functional drinks offer a clear trade-up opportunity when paired with healthier food missions orworkdayroutines

ForFoodservice:

Build functional choice into daypart menus: Offer morning cognitive blends, mid-dayhydrationandeveningcalmor sleep-focusedoptions

Premiumise through wellness:

Functional drinks can elevate cafés, gyms universities hotels and corporate canteens with low-labour highperceived-valueitems

Winin“performancemoments”:Gyms, leisurecentresandworkplacecafésare ideal environments for performance hydration energy, recovery and guthealthdrinks.

Fromlow-sugartohighfunction

Alongside this, fibre has moved rapidly from niche to mainstream (#fibremaxxing), driven by guthealth awareness and wholefood-first nutrition 55%ofconsumersliketosee“1ofyour5aday”on a drink¹, signalling growing demand for recognisable, food-based nutrition rather than abstractfunctionalclaims.Berries,beansandhighfibre fruits are increasingly seen as credible ingredients that deliver both health and reassurance

GLP-1 medications add a new dimension. As appetite suppression becomes more common, consumers need to be more deliberate about protein and fibre intake to avoid nutritional gaps Drinks offer a convenient, digestible and enjoyable waytomaintainnutrientdensity especiallywhen appetiteforsolidfoodisreduced

FROMINSIGHTTOACTION

Forbrands

ForBrands:

Shiftfrom“lesssugar”to“more nourishment”:Buildpropositionsaround nutrientdensity protein,fibre wholefood ingredients withclearfunctionalroles

Reformulatesweeteningsystems: Expect continued pushback on artificial sweeteners; invest in blended or natural sweetening strategies that maintain taste withouttriggeringUPFconcerns

Use wholefood cues to build trust:

Ingredients such as berries, beans and high-fibre fruits provide strong signals of “real” nutrition and help premiumise products

Design for GLP-1 realities: Appetitesuppressed consumers want compact, nutrient-dense options; create smaller formatswithhigherpayloads

Forcontractmanufacturers:

Build capability in high-protein and high-fibre formulations. Stability, solubility and sensory management becomecoretechnicaldifferentiators

Strengthennaturalsweetenerexpertise. Brands will need guidance on stevia systems, allulose blends, fruit-based sweetnessandotheralternatives

Support claims substantiation. As nutrient density becomes a selling point, brands will rely on manufacturers for compliantwordingandvalidation

Partner on GLP-1-friendly lines. Expect briefs for nutritionally dense, portioncontrolled shakes and shots formulated forsatietyandmusclepreservation

While the health narrative in drinks is becoming more sophisticated, it also increasingly fragmented Sugar reduction remains nonnegotiable yet consumer scepticism around sweeteners is rising with 34%lookingforartificial sweetener free drinks.¹ Many shoppers now feel that diet drinks “solve one problem by creating another” pushing brands toward cleaner, more naturalsweeteningsystems

At the same time, demand for protein remains strongwhileinterestinfibreisaccelerating 43%of consumerssaytheyliketosee“highprotein”on drinks¹ reinforcing protein’s role beyond fitness into satiety, energy stability and healthy ageing This continues to underpin growth in high-protein icedcoffees,yoghurtdrinksandsmoothies

38%wouldconsider buyingfibreboosteddrinks

What’s emerging is a drinks landscape where nutrient density, not just low sugar will define the next wave of health-led growth Brands that blend functionality with wholefood cues and deliver them in great-tasting, convenient formats are bestplacedtowin.

TheFutureofFunction?It’sBeanBrewing

Weexpecttoseemorefibre-enrichedsmoothies, wholefood-inspireddrinkbasesandevenbeanbasedbeverages formatsalreadyestablished inEastAsianmarketsbutstillatanearlystagein Europe.Beansbringauniquelycompelling combinationofprotein,gut-supportingfibreand sustainability makingthemalogicalstepinthe evolutionofnutrient-densedrinks Ourresearch suggests27%ofconsumerswouldliketosee legume(eg beans,peas)fibreindrinks*

ForRetailers:

Curate by benefit, not base. “Protein & Satiety”“GutHealth,”and“NaturalEnergy” resonate more than dairy vs non-dairy or juicevssmoothie

Dial up nutrient-dense options in meal deals. Consumers are actively looking to “upgrade” lunchtime nutrition especially GLP-1usersandhealthseekers. Expand premium health tiers. Higherprotein, fibre-rich and wholefood-based drinks support stronger price ladders and margingrFwth.

ForFoodservice:

Integrate protein and fibre into daypart menus. Morning satiety post-gym recovery and mid-afternoon stability are high-valuemissions

Educate through menus. Foodservice can explain benefits such as gut support or GLP-1-friendly nutrition more directly than retail

Offer small-format nutrient-dense options.Particularlyrelevantforworkplace, leisure and travel environments where convenienceandnutritionintersect.

INNOVATION

6.FlavourFrontiers:Global,Sour, Botanical&“MatchaMoments”

Flavour is where many of 2026’s biggest trends converge health, indulgence world cuisines, “adultification” of soft drinks and the rise of experiential beverages Flavour is no longer just about taste; it's now a signalofbenefit,mood, identity and occasion. As a result the flavour landscape is fracturing into distinct territories, eachwithitsownsetofconsumermissions.

As flavour signals multiply, consumer research and ongoing listening become essential guardrails against trend-chasing ensuring brands back flavours with genuine relevance, longevityandrepeat-purchasepotential

Frombowltobottle

Adrinkpackedwithfibreand nutrientswithoutthesugarcontent ofsmoothies?EnterGazpacho.A long-timenichecategoryintheUK, isitnowtimeforcoldsouptoshine? M&Sthinksso,havinglaunchedtwo 250mlgazpachodrinksforon-thego Itcertainlyticksmultiplehealth boxes,butthechallengewillbe expandingitsrelevancebeyond summerandestablishingitasa credibleeverydayalternativeto sweetfunctionaldrinks

2026willlikelysee:

Zingy,superfood-ledflavours(ginger,turmeric) performstronglyamongconsumerswith49% interested,reinforcingtheirroleasshorthandfor health,immunityandenergy

Botanicalandfloralnotes withoverhalfof consumersinterested(54%)* Noteslike elderflower,orangeblossomandhibiscuscarry strong“adult”,“lighter”andaperitivo-stylecues makingthemespeciallyeffectiveinlow-andnoalcoholandfunctionalformats

Savouryandumamiflavours gingerand turmericshotsareevolvingwithKimchishotsnow emerging

Ongoingprominenceofmatchaandpistachio particularlyinhotandcoldcoffee-based beverages wheretheyaddpremiumcuesand cafécredibility

Icedcoffeeasaflavourtestbed increasingly blurringthelinebetweencoffee dessertand functionaldrink makingitakeyarenafor experimentation

TropicalandAsianflavours

Ofinterestto46%ofconsumers, flavourslikeyuzu,lychee dragonfruitandKoreanpearare nowwellbeyondniche drivenby foodculture travelaspirationand socialmedia

FROMINSIGHTTOACTION

ForBrands

Think in flavour “territories”, not variants. Build coherent families such as Dessert, Botanical & Refined, Asian & Tropical, Sour & Sparkling to guide innovation and avoid scattergun launches.

Usebridgeflavourstoeaseadoption.Pair bolder notes (dragonfruit, yuzu, hibiscus) with familiar anchors (apple, lemonade) toimprovetrialandrepeat.

Flavour can carry the benefit cue.

Botanical = calm/refined; sour = refreshing/light; dessert = indulgence; tropical = energy/uplift. Flavour can carry thebenefitcue.

ForContractManufacturers

Deepen flavour-house collaboration. Demand will rise for botanicals sour systems floral accents, pistachio/matcha profiles and coffee–dessert hybrids that requiretechnicalfinesse

Offerpilot-scaleflexibility.Brandswillwant to test adventurous flavours in small batches before committing to full production short runs become a competitiveadvantage

Strengthen coffee and tea extraction expertise. With iced coffee and tea hybrids surging manufacturers with robust extraction, stabilisation and flavour retentioncapabilitieswillwinmorebriefs

ForRetailers

Organise chillers by mood or mission. Grouping as Refreshing Indulgent, Sophisticated or Adventurous helps shoppers navigate an increasingly complex flavourlandscape.

Usesecondarysitesfordiscovery.Endcaps, meal-deal adjacencies and café tie-ins are powerful ways to surface new flavours withoutoverloadingthemainfixture. Lean into global flavour trends. Asian- and tropical-led flavours resonate strongly with younger shoppers and help elevate the overallcategory

ForFoodservice

Use cafés and bars as R&D labs. Foodservice is the ideal environment for testing emerging flavour trends (matcha, hibiscus,pistachio,Koreanpear)

Build flavour-led limited editions. Rotating syrups, toppings, infusions and coldfoamflavourskeepmenusfreshand createsocial-media-friendlymoments Offer cross-category flavour consistency. Aligning iced coffee, smoothies and speciality beverages around shared flavour territories builds a strongerin-venueidentity

inaCan’

While health and function dominate much of the industry conversation indulgence remains one of the most reliable drivers of purchase. For many shoppers,drinksrepresentanaccessiblemoment ofjoyorcomfort asmall,permissibletreatthat fits into a workday, commute or quick-service meal

Dessert-like profiles, loaded iced coffees and limited-edition “treat” flavours continue to perform well 37% of on-the-go drinks buyers look for dessert-inspired flavours.** These drinks deliver emotional value first and functional value second, if at all In this context, attempts to make highly indulgent hero products significantly “healthier” can backfire diluting the very qualities that made themsuccessful

At the same time, the sugar tax is reshaping the economics of indulgence. Higher-sugar recipes now carry a structural cost premium, pushing brands to justify price increases through more premium positioning, richer textures and stronger visual cues. For many consumers, an indulgent drinkisstill“worthit”,butonlywhentheexperience clearlymatchestheprice.

2026willseeindulgencebecomemoreintentional, morevisualandmorepremium, with café culture social media and dessert crossovers shaping both flavourandformat

FROMINSIGHTTOACTION

ForBrands:

Be honest about indulgence. Not every SKU needs a health halo; consumers will accept higher sugar if the product clearly positionsitselfasanoccasionaltreat

Elevate the sensory experience. Colours, creamy textures and luxury pack design can command a premium and enhance perceivedindulgence

Lean into seasonal and limited editions. Rotating indulgent flavours (eg caramel latte in winter, strawberry shortcake in summer) sustain excitement without overexpandingthecorerange

ForRetailers:

Premiumise with visuals. Since indulgencejustifiesprice prioritiseformats withstrongvisualcues layeredtextures, richer colourways, premium bottles or cans,andmorecafé-stylecues

Support smaller formats for permissible treats.Merchandise150–250mloptionsfor shoppers who want indulgence without the calorie load, especially in meal-deal andgrab-and-goareas

Use meal deals strategically. Anchor indulgentdrinksasthepremiumtrade-up within food-to-go deals Consumers are more willing to pay a small uplift for a treatthattransformstheirlunchbreak.

ForContractManufacturers:

Texture and mouthfeel expertise

Creamy, dessert-like drinks need indulgenttextureswithoutbeingcloyingor unstable – an area where process and formulation know-how can be a key differentiator

Portion control. Help brands deliver indulgence in smaller pack sizes (mini cans 150–250ml bottles) to strike the balance between pleasure and permissibility

ForFoodservice:

Elevate the treat moment in menus

Indulgent drinks perform especially well in cafés, QSR workplace and leisure settings where consumers seek affordable gratification

Use indulgence to differentiate the experience. Visual appeal layers, whipped textures, drizzles, toppings is a major driver of social sharing and perceivedvalue

Deploy indulgent drinks as daypart boosters Morning sweet coffees, afternoonicedtreatsandeveningdessert beverages can drive incremental transactions.

Ourresearchhasfound34% ofconsumersaremorelikely tograbatreatorindulgent optionwhenatworkthanat home–drinksincluded*.

WINNINGTHEINDULGENCE OCCASION

8.Packagingfor2026

Sustainabilityexpectations,retailerrequirementsand consumer demand for more premium experiences are driving a noticeable shift in how drinks are presentedanddelivered

Sustainability is now the baseline Brands are lightweightingPET aluminiumandglass adoptingmonomaterial designs and using clearer “real reduction” claims to meet retailer and consumer scrutiny Refill and concentrate formats are also gaining ground in workplace and travel settings where they cut packaging waste without compromising convenience

Retailers want packs that work harder on shelf. Benefit-led front-of-pack labelling now outperforms ingredient-led messaging helping shoppers navigate at speed. Shelf-ready formats are becomingessentialtoreducelabour,whileQRcodes areshiftingfromnoveltytoarouteintotransparency aroundingredients,sustainabilityandprovenance.

Formatinnovationisacceleratingtoo.Stickpacks, sachets and concentrates offer portability, value andalowerpackagingfootprint Shotformatsare expanding rapidly as consumers look for compact, high-impact functional doses making stability, dose accuracy and premium cues increasinglyimportantin60–100mlbottles

vedesign Producer reshape cost and te onto o report atedfees

FROMINSIGHTTOACTION

r of fee directly g from a ic lever formats, design to mpetitive

In2026,packagingisn’tafinishingtouch— it’sastrategicdifferentiator,helping brandsmeetsustainabilitygoals,deliver experienceandstandoutinan increasinglycrowdedcategory.

9.HydrationUpgraded:TheRiseof

Flavoured&FunctionalWaters

FROMINSIGHTTOACTION

ForBrands:

Premiumisewithsubtleflavour Develop lightly flavoured ranges that deliver refreshmentwithoutsugarorsweeteners tapping into “clean hydration” expectations

Use water as a functional platform. Extend into gut health minerals/electrolytes, calm or focus throughgentlefunctionalcuesthatdont compromisetaste

Createmultipack-firstformats Prioritise take-home SKUs with high repeat potential and clear hydration missions (workday,gym commute)

ForFoodservice:

Elevate water beyond “default.” Offer premium flavoured still and sparkling waters as trade-up options across cafés, QSRandleisurevenues

Introduce fermented or functional waters selectively. Water-kefir and botanical blends can differentiate menus, especially in workplaces, cafés andwellness-ledsettings

Replace sugary soft drinks in kids’ or familymeals.

Lightly flavoured waters offer a healthier, parent-approved alternative that still feelslikeatreat

Flavoured water is accelerating as consumers look for hydration that feels cleaner lighter and more interesting than plain water without tipping intosoft-drinkterritory

Brands like San Pellegrino Essenza are leading the charge with subtle profiles such as Dark Morello Cherry or Pomegranate flavours that deliver refreshment without relying on sugar or sweeteners. This aligns with growing demand for minimally processed, low-intervention drinks thatstillofferasensorylift.

At the same time, take-home multipacks of bottled water are booming, as shoppers seek convenient, safe, consistent hydration for home, work and on-the-go missions The category is no longerjustaboutstillvssparkling it’sbecoming a platform for light flavour, wellness cues and permissibleupgrades.

Even kefir waters and water-kefir hybrids are movingintothemainstream offeringafunctional step-up from plain water without the intensity of kombucha

What’s notable is how early retailers are now leaning into the format:

Sainsbury’s has already launched its own kefir water, signalling confidence in the category well before it reaches full maturity. This reflects a broader shift, with retailers increasingly backing emerging health formats earlier to help shape demand rather than simply respond to it

Consumers, meanwhile, are trading strategically cutting back on some everyday purchases while choosing small “better for me ” enhancements in hydration. Brands like Fix8 are responding with water kefir options that deliver gut-friendly benefits in a milder, more accessible taste profile.

ForRetailers:

Movebeyond“stillvssparkling”.Group products by how consumers use them

Everyday Hydration, Lightly Flavoured Electrolytes & Active, Gut-Friendly Hydration Thisreflectshowshoppersare actuallychoosing

Grow the multipack opportunity. With take-home hydration rising, give flavoured waters stronger presence in value aisles and front-of-store promotions Highlight low/no sugar and natural positioning for families and lunchboxshoppers

Trial emerging water formats. Allocate discovery space for water-kefirs botanical waters and naturally flavoured rangestotestconsumerappetite

ForContractManufacturers

Strengthen fermentation expertise

Water-kefir and mild fermented beverages offer growth opportunities for brandsseekingfunctionalupgrades

Offer scalable multipack solutions. Lightweight bottles efficient filling lines and high-volume formats will win briefs asmultipackgrowthaccelerates Support clean-label innovation. Provide guidance on natural flavour systems, botanicals and non-sweetening enhancers

10.TrendBlending:

However, blending trends isn’t as simple as putting claims together they need to complement each other and avoid confusing consumers

Predictingwhichcombinationswillresonate is not always straightforward, making consumer research essential. Understanding whatcurrentandpotentialbuyersareseeking helps identify the right overlaps and market gapstotarget

FROMINSIGHTTOACTION

ForBrands:

Lead with one clear hero benefit. Trend blends must resolve to a single easily understood consumer outcome (energy, satiety,calm indulgence),withsecondary benefits reinforcing not confusing the message.

Test resonance before scaling. Not all trend combinations convert to repeat purchase;early-stageconsumerresearch is critical to identify which overlaps feel intuitiveandcredible. Avoid trend soup. Stacking only works if the proposition is still simple to understandinthreesecondsatfixture

Partnership mindset. Collaborations with cafés mindfulness apps, fitness brands and dessert brands can lend instant credibilitytostackedconcepts

ForRetailers:

Use trend blends to premiumise the fixture. Products combining functional and experiential cues justify higher price points and trade shoppers up from plain hydration

Support discovery through secondary siting.Mealdeals coffeeadjacenciesand functional bays help shoppers navigate increasinglycomplexpropositions

Curate, don’t overcrowd. Too many similar “stacked” products create noise retailers that edit well will see stronger conversion

ForFoodservice:

Use functional drinks as menu architecture. Trend-blended drinks can anchor new menu sections such as Energy & Focus Recovery & Refuel, or Calm & Wind-Down helping operators modernise menuswithoutexpandingcomplexity

Trade consumers up, not across. Blended propositions justify a premium over standard soft drinks or coffee by offering both experience and benefit driving incrementalspendratherthansubstitution Support portion-controlled experimentation. Shots, small RTDs and made-to-order formats allow consumers to trial complex blends with lower commitment,improvingconversion

ForContractManufacturers:

Develop multi-trend formulation expertise. Blended propositions place higherdemandsonstability tastemasking, texture and shelf life particularly where protein,fibreandliveculturesintersect

Position as a strategic partner, not just capacity. The ability to advise on which trends can realistically coexist becomes a competitiveadvantage

Offer white-label platforms. Create base formulations (eg relaxation seltzer gut health shot, high-protein iced coffee) that canbecustomisedformultipleclients

SupplyChainReset: LessonsfromtheWiderMarket

For brands, getting logistics right is a critical driver of profitability and performance

Food and drink supply chains are typically high-volume, time-sensitive and costsensitive, meaning a significant proportion of value is tied up in storage, handling anddistribution.

With many products moving across long distances from European production sites to UK and export markets inefficiencies are quickly amplified. In this context, strong control over logistics, warehousing and distribution is not just an operational requirement, but a strategic advantage that directly impacts cost, availability and brandreputation.

Willmotts operates at the frontline of UK FMCG supply chains, managing bonded, BRCGS-accredited and food-grade logistics for brands supplying retail, foodservice and export markets This includes drinks logistics alongside broader food and FMCG supplychains,wherecompliance,traceabilityandproductintegrityarecritical

“Whatwe’reseeingfrombrandsisamove towardgreatercontrolandconfidenceintheir supplychains.BRCGSandbondedstorageisn’t justaboutcompliance—it’saboutflexibility, visibilityandknowingexactlywhereyourstockis atanypointintime

Brandsthatinvestinrobust,well-managed logisticsarefarbetterplacedtoadaptas markets,regulationsandcustomerexpectations continuetochange Stockisproduct,andproductisbrand-howit’s storedandhandledmatters.”

DanGray ManagingDirector WillmottsTransport

ExpectationsvsReality

At the same time, expectations around visibility and accountability have increased. Brands are placing greater importance on live operational updates, auditabilityandconfidencethatprocessesarenotonlydocumented,butactively managedandunderstood.

Inpractice,challengesrarelycomefromunrealisticexpectations,butfromgaps in communication and planning. Where processes, constraints and lead times are clearly understood, supply chains tend to operate more effectively — tance of early forecasting, collaborative planning and tionships.

-ServeandCostTakeOut(CTO)initiativeshavebecomea hansimplyreducingheadlinetransportcosts,brandsare at overall supply chain efficiency — including storage, tockmanagement—todrivelong-termvalue.

inefficiencies across supply chains become more visible. re placing greater emphasis on operational resilience, controlacrosswarehousinganddistribution.

SupplyChainReset: LessonsfromtheWiderMarket

FromTransactionalLogisticsto Partnership

What has declined is the appetite for short-term fragmentedlogisticsarrangements Fewerbrands are willing to manage multiple providers with unclearownershipwhenissuesarise

Instead there is growing preference for trusted partners who can manage complexity end-toend, take responsibility when plans change, and maintain consistent standards across transport warehousingandbondedoperations

Looking ahead strong logistics providers will increasingly be defined by partnership rather than service provision alone What separates leading operators is a deep understanding of their customers’ businesses, operating models and growth ambitions and the ability to build resilientsupplychainsaroundthem

For food and drink brands, this also means prioritising accurate forecasting across production, stockholding and distribution Balancing raw materials packaging finished goods and minimum order quantities is becoming an increasingly important governance challenge.

Attempting to split freight across multiple providers to achieve marginal cost savings may appear attractive in the short term, but often increases complexity, reduces visibility and creates greater operational risk over time. Stable integrated partnerships typically deliver stronger long-term value through consistency accountabilityandoperationalcontrol.

TheWillmottsPerspective

From Willmotts’ perspective, resilient supply chains are built on three foundations: operational discipline, complianceandstrongpartnerships.

This includes significant capability across food-grade warehousing organic-certified storage, BRCGSaccredited operations and bonded logistics for dutymanaged goods supported by systems operational expertiseandlong-termcustomerrelationships

Ultimately, the brands best-positioned for the next phase of growth will be those investing in supply chain models that are integrated, transparent and adaptable supported by logistics partners who understand both theoperationaldetailandthewidercommercialpicture

LogisticsIsNowPartoftheBrand

Forfoodanddrinkbrands,keepingpacenowmeans lookingbeyondheadlineratesandaskingmore fundamentalquestions:

Howrobustareprocessesinpractice?

Howquicklycanstockbereworked,redirectedor released?

Howvisibleandresponsiveistheoperationunder pressure?

Howwelldoesalogisticspartnerunderstandthe brandanditsroutestomarket?

Assupplychainsbecomemorecomplex logisticsis nolongerjustanoperationalfunction itplaysan increasinglyimportantroleinprotectingproduct quality,serviceandbrandreputation

Resilient,compliantandcommerciallyalignedsupply chainswillincreasinglydefinethestrongestbrands

FROMINSIGHTTOACTION

ForBrands:

Treatlogisticsasastrategicasset.Movebeyondtransactionalfreightbuyingand buildlong-termpartnershipsthatsupportgrowth agilityandriskmanagement.

Plan earlier, forecast better. Invest in integrated forecasting across production, stockholding and distribution to reduce peak-period pressure and avoid costly firefighting.

Design supply chains for flexibility. Build in options for reworking, redirecting and releasingstockasroutestomarketevolve.

Balance cost and resilience. Avoid short-term savings that increase complexity; prioritisestability,visibilityandlong-termmarginprotection.

ForRetailers:

Prioritisesupplychainresilience.Favoursuppliersandpartnerswithprovenbonded compliantandresponsivelogisticscapabilities

Reward reliability, not just price. Consistent availability and execution are increasinglycriticaltoshoppertrustandcategoryperformance

Collaborate on forecasting. Share demand signals earlier to reduce seasonal bottlenecksandavailabilityrisks

Protect shelf productivity. Strong logistics underpin faster replenishment fewer outagesandmoreconfidentrangingdecisions

ForFoodservice:

Build supply chains around occasions. Ensure logistics partners can support menu changes seasonaldemandandrapidrangeevolution

Reduceoperationalrisk.Prioritise partners who offer visibility contingency planning andrapidissueresolution.

Enablefasterinnovation.Flexible warehousing and distribution support limited-time offers,trialsandmenurotation.

Safeguard brand experience. Reliable supply protects service standards customer satisfactionandrepeatspend.

ForContractManufacturers:

Integrate logistics into customer propositions. Position bonded warehousing duty managementanddistributionaspartofyourvalueoffer notadd-ons

Supportcustomeragility.Enablefasterproductreallocation,delayeddutypayments andflexiblereleaseschedulestoimproveclients’cashflowandresponsiveness

Invest in compliance and transparency. Robust audit trails, live tracking and governancesystemsarenowhygienefactors

Strengthenpartnershipcredentials.Becomeatrustedoperationalpartner notjusta productionprovider.

opportunities...wehelpyou capturethem.

Turningcomplexityinto commercialadvantage As thedrinksmarketaccelerates successin2026andbeyond willcomefromfocusedbets, nottrendchasing.HRAGlobal helpsbrandschoosewisely andscalewithconfidence:

NPDscreeningandconceptvalidation

Contractmanufacturerandpartnermatching

Licensing,M&Aandgrowthstrategysupport

Consumerresearch&ongoinglistening

Out-of-homeinsightandmissionmapping

Tastetestingandsensoryvalidation

Categorystrategyandrangeoptimisation

WHATWEDO....

FRESH-Weworkdifferently

DrinksBrands

Turntrendsintogrowth.

Weidentifywhichflavours,formatsandclaimswill scale,notjustspike helpingbrandsprioritiseNPD, sharpenrangesandmovefasterwithconfidence.

AUTHENTIC-Wetellyouhowitis

Manufacturers&ContractManufacturers

CURIOUS-Wefindsolutions

De-riskinvestment.Unlockasset-ledgrowth. Wealigncapability,capacityandinnovation pipelinestorealmarketdemand—supporting smarterbriefs,co-development,whitelabel, licensingandM&Adecisions.

TRUSTED-Wealwaysdeliver

Retailers

Curatewithconfidence.Convert,don’tclutter. Wedesignbenefit-ledrangesandshopper-first fixturesthathelpretailersdecidewhattoback,what totrialandwhattodelist keepingshelves productiveandrelevant.

Foodservice

Deepexpertiseacrosscategories geographies,andformats from dairy and plant-based to produceandwidergrocery

Matchdrinkstomoments.Driveincrementalspend. Wehelpoperatorswinbyoccasion shaping menus,formatsandpricingaroundrealmissions likeenergy,focus,recovery,hydrationandtreat momentsacrossvenues.

Comprehensivesupplychain knowledge builtonhandsonexperiencewithproducers manufacturers retailers andinvestors, offeringaful 360°perspective