Non-Carbonated Drinks Are Stealing Market Share From Hard Seltzers

CNBC reported Sunday that non-carbonated drinks are displacing hard seltzers as the dominant force in consumer beverage choices. Brands like Surfside Iced Tea and BeatBox are capturing shelf space and attention, particularly among younger drinkers.

Seltzer Fatigue Sets In

The sparkling water boom that began roughly a decade ago with LaCroix’s rise has lost considerable momentum. Malt-based hard seltzer volumes, a category that includes White Claw, fell 1.1% in the 52 weeks through late April, according to market research firm Circana. Meanwhile, ready-to-drink premixed cocktails surged 46.4% over the same stretch. Brands driving that jump include Surfside, Sun Cruiser, BuzzBallz, and Anheuser-Busch InBev’s Cutwater Spirits line.

Randy Burt, Americas director of consumer products at consulting firm AlixPartners, told CNBC that momentum has clearly shifted toward still options across both alcoholic and non-alcoholic segments.

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A Generational Divide Reshapes Preferences

Gen Z is the primary engine behind the fizz-free pivot. This generation grew up as soda consumption declined sharply from its late-1990s peak. Reusable water bottles became a cultural fixture, and newer drink formats like refreshers and dirty sodas went mainstream without much resistance.

Scott Scanlon, executive vice president of alcoholic beverages at Circana, described a pattern of brand-jumping among younger consumers that differs sharply from older cohorts. Millennials embraced White Claw and Truly; Gen Z is now gravitating toward tea-based and still alternatives as they reach legal drinking age. Scanlon noted that each wave of young drinkers tends to migrate toward whatever feels newest, rather than settling into a single brand.

Burt added that Gen Z’s preference for tea-based drinks at social occasions reflects a broader wellness orientation. Non-carbonated formats align naturally with functional beverages targeting stress relief or immune support, where fizz would feel out of place.

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Background: How Surfside Changed the Calculus

Indie vodka distiller Stateside Brands launched Surfside in 2022, at a moment when carbonation still dominated alcohol innovation. The brand pairs a vodka base with iced tea and lemonade, deliberately skipping bubbles entirely. Its rapid rise to prominence helped validate non-carbonated formats across the wider industry and prompted larger competitors to accelerate still-drink development.

Health perceptions are also nudging consumers away from carbonation. Sparkling water carries mild acidity that can erode tooth enamel over time, and fizzy drinks can cause digestive discomfort for many people. Some consumers also associate any carbonated drink with sugary sodas, reinforcing a preference shift that shows no sign of reversing.

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