Sales of LaCroix and other flavored seltzers surged about a decade ago, but recent trends indicate a decline in their popularity, attributed to 'seltzer fatigue' among consumers.
Randy Burt from AlixPartners notes that there is a growing consumer interest in non-carbonated drinks, particularly among Generation Z, who are moving away from carbonated beverages in favor of options like ready-to-drink cocktails and iced teas.
Data from Circana shows that malt-based hard seltzers, including White Claw, experienced a 1.1% volume drop over the past year, while ready-to-drink premixed cocktails saw a remarkable 46.4% growth. This generational shift is characterized by a preference for new products and a focus on wellness, with many younger consumers associating carbonation with negative health effects such as bloating.
Brands like Surfside, which offers non-carbonated alcoholic beverages, have capitalized on this trend, becoming the fastest-growing alcohol brand in the U.S. as of 2024. Other brands, including Cutwater and BeatBox, are also seeing increased demand for their non-carbonated offerings.
In the non-alcoholic sector, while some carbonated drinks like Celsius are still performing well, there is a noticeable trend towards expanding non-carbonated lines to cater to consumer preferences for smoother, more drinkable options.
Overall, the beverage landscape is evolving, with established companies adapting to the changing tastes of younger consumers who prioritize health and innovation over traditional carbonated drinks