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The beverage industry is evolving rapidly, with trends like human connection, bubble tea and celebrity-backed brands taking centre stage. From innovative experiences to playful, customisable drinks, consumers seek personalisation and authenticity in their choices. Sian Edwards, director of strategy and insights at Finlays, highlights the key shifts shaping the market in 2025.

1. Human Connection

In a world dominated by digital convenience, the quest for meaningful, human interaction has become a growing consumer priority. Tools like QR code menus and app-based delivery services have streamlined foodservice operations, but they’ve also created a sense of disconnection in the dining experience. To counterbalance this, brands are reintroducing elements of warmth and authenticity to their offerings, crafting experiences that feel personal and memorable.

For example, independent coffee-shops are experimenting with coffee workshops, for a behind-the-scenes experience targeted to coffee connoisseurs looking to level-up their at-home coffee game. Similarly, interactive cocktail masterclasses, where guests can learn mixology skills while enjoying a curated experience, are proving popular with consumers seeking more engaging outings.

On the retail side, brands are using merchandise to further humanise their identities. Limited-edition collections – such as branded tote bags, mugs and apparel – are creating lasting consumer connections by reflecting company values or playful brand ethos. Hybrid events, such as live tastings combined with virtual streaming, also give consumers an opportunity to interact with a brand on their terms. In a market that is increasingly commoditised, these initiatives are helping companies stand out by transforming transactional interactions into emotional, loyalty-building moments.

2. Bubble Tea

Bubble tea continues to thrive as a category, evolving from a niche phenomenon into a global mainstay. Its appeal lies in its endlessly customisable nature: flavours, textures and even visual presentations can be tailored to suit any palate or aesthetic. Younger demographics, in particular, are drawn to its playful essence, from the chewy boba pearls to the bright, Instagram-worthy colours of the drinks themselves.

Major chains are now embracing bubble tea as a permanent menu offering. For example, Starbucks announced its first-ever bubble tea line set to launch in summer 2024, signaling the drink’s firm entrenchment in mainstream beverage culture. Meanwhile, independent operators are pushing the boundaries of innovation, introducing unique variations like sparkling bubble tea made with carbonated water or plant-based boba that caters to the growing vegan market.

Regional flavours are also adding excitement to the category. Ingredients like matcha, taro and hibiscus are providing global consumers with a fresh take on bubble tea by infusing traditional elements into this modern drink. The opportunity for brands lies in capturing this blend of fun and customisation while offering a spectrum of options that cater to both indulgent and health-conscious consumers.

3. Happy Hydration

Hydration has gone viral thanks to social media trends like #WaterTok, where creators transform simple water into vibrant, eye-catching drinks. These creations often include ingredients like sugar-free syrups, powdered teas, edible glitter and popping candy, turning hydration into a highly shareable and enjoyable ritual. Drinks such as “Orange Mermaid Water” and “Blue Raspberry Blast” epitomise how everyday moments, like drinking water, can be upgraded into an affordable indulgence.

This trend is influencing the beverage market well beyond water. The soda category, for instance, has seen a surge in “dirty soda” – a phenomenon popularised by chains like Swig, where sodas are mixed with syrups, creams, and other add-ins for a completely customisable experience. Swig’s presence in reality television has amplified this trend, further embedding it in pop culture.

Brands can capitalise on this wave of creativity by introducing customisable beverage kits that include flavoured concentrates, add-ons like popping pearls, and even reusable glassware. By targetting at-home mixologists who enjoy recreating viral drinks, companies can transform hydration into a personalised and highly interactive experience.

4. A-List Beverages

The beverage industry has become an exciting opportunity for celebrities and influencers, whose star power brings instant consumer attention to new products. These launches often align with major consumer trends – like health, sustainability or indulgence – making them even more impactful.

A prime example is Emma Chamberlain’s RTD coffee line, which generated $2.3 million in its first year. The brand resonates with younger audiences by leaning into Chamberlain’s quirky, relatable personality and minimalist aesthetic, which is further amplified by her social media reach.

Celebrities are also venturing into the functional beverage space. For example, adaptogen-infused waters and wellness-focused drinks are being marketed by figures like Bella Hadid, who co-founded Kin Euphorics, a non-alcoholic brand offering mood-enhancing beverages. On the alcoholic side, premium celebrity spirits – such as Kendall Jenner’s 818 Tequila – are designed with sophisticated packaging and sustainability narratives that appeal to eco-conscious, experience-driven consumers.

For brands, these partnerships aren’t just about fame; they’re about creating story-driven products that feel aspirational while still accessible to target audiences. The challenge will be maintaining authenticity as the market becomes saturated with celebrity-backed beverages.

5. Hard Tea

Hard tea is proving to be one of the most resilient categories in the ready-to-drink (RTD) alcoholic beverage market. Despite broader economic pressures, this category saw +36% YOY growth in 2024 (Nielsen). Its appeal lies in its ability to merge the accessibility of tea with the fun of alcohol, offering a drink that feels both familiar and adventurous.

Twisted Tea continues to lead the market, but competition is heating up. Iconic brands like Arizona Iced Tea and Molson Coors have entered the category, bringing their unique branding and flavour profiles to an increasingly crowded field. Beyond the established players, innovation is driving differentiation. Seasonal flavours and co-branded products such as Twisted Tea Rocket Pop flavour, low-calorie options, and functional ingredients like CBD or adaptogens are all becoming tools for brands to stand out.

Hard tea’s versatility also gives it a broad consumer appeal. Light, sparkling hard teas are ideal for social occasions, while bolder brews attract consumers looking for something closer to a traditional alcoholic beverage. For brands, the focus should remain on creating a diversified portfolio that caters to evolving consumer preferences while maintaining the fun and accessibility that define the category.

Conclusion

From human connection to viral trends, the beverage industry is evolving at a rapid pace, shaped by consumer desires for personalisation, nostalgia and small moments of joy. Whether it’s intimate experiences like barista-led coffeeshops, playful drinks like bubble tea, or celebrity-backed functional beverages, the industry is finding innovative ways to meet the moment.

As consumers navigate uncertain times, their demand for products that balance fun, functionality and authenticity will only grow. Brands that adapt by embracing creativity, leaning into meaningful storytelling, and providing both indulgent and practical options will be well-positioned to thrive. By recognising these trends, the beverage sector has a unique opportunity to not only grow but also become a source of comfort and connection in people’s lives.