A growing number of Gen Z consumers are ditching alcohol in favor of functional beverages that offer health and wellness benefits, according to a new report by Keurig Dr Pepper. The study reveals that 39% of Gen Z now prefer alcohol-free drinks when socializing, while 75% gravitate toward beverages formulated to boost gut health, energy levels, or mental clarity.
This evolving preference is visibly reshaping social norms and venues. Instead of bars and clubs, many young adults are gathering in coffee lounges, kombucha cafés, and establishments dedicated to non-alcoholic mocktails. These settings offer an array of wellness beverages, including adaptogen-infused sodas, nootropic tonics, and probiotic teas, catering to health-conscious customers seeking both social and functional value.
“Gen Z is redefining social drinking,” said a spokesperson from Keurig Dr Pepper. “It’s no longer just about relaxation—it’s about rejuvenation, mindfulness, and connection without the hangover.”
Hospitality businesses are quickly adapting. In cities across the U.S., upscale alcohol-free bars and functional drink menus are becoming staples. Venues like New York’s “Absence Lounge” or Los Angeles’ “Reboot Bar” are gaining popularity for offering curated drink experiences without alcohol. Beverage brands are also ramping up innovation, introducing lines of sparkling adaptogen waters, hemp-based elixirs, and zero-proof cocktails that appeal to a younger, wellness-minded audience.
The shift aligns with broader Gen Z values of mental health awareness, self-optimization, and a balanced lifestyle. Experts attribute this trend to increased public dialogue around mental health, the rise of sober curiosity movements, and social media influencers promoting wellness routines that emphasize clean living.
“We’re seeing a real-time cultural change where young people are more selective about what they consume and how it affects their physical and mental well-being,” said Julia Mancuso, a beverage trend analyst with Beverage Market Insights. “Functional beverages offer a way to stay socially engaged without compromising on health.”
The transformation also presents an opportunity for retailers and hospitality brands to reimagine their offerings. Supermarkets are dedicating more shelf space to mood-enhancing and digestive-support drinks, while event planners are incorporating dry bars into weddings and corporate functions.
This growing embrace of functional beverages signals a significant cultural turn—one that is likely to influence beverage innovation and nightlife trends for years to come.
