No longer satisfied with simply having their thirst quenched, today’s soft drinks consumers are demanding functional benefits.
Faced with rising commodity prices and wavering consumer confidence, many categories are struggling, but Soft Drinks is positively thriving.
“Soft Drinks continues to be one of the most dynamic and resilient categories in Scottish convenience,” says Simon Gray, Founder of Fizz with Purpose and Exited Founder of Boost Drinks. “Despite the challenges facing the wider grocery market, the category is growing at +6.4% year on year [Circana Scotland Convenience value sales to 11.04.2026] – but that headline figure masks a more nuanced story. Growth is increasingly concentrated in specific sub-categories, and the retailers best positioned for the summer ahead are those who understand where momentum is really coming from.”
He claims the category is going through its “most significant structural shift in a generation”, highlighting that growth is not evenly distributed. “Traditional pillars like Cola (-0.1% YoY) and Flavoured Carbonates (+2.2% YoY) are performing well below the total category [ibid].”
That’s not to say the cola category isn’t worth attention. “Big brands remain key,” states Coca-Cola Europacific Partners Senior External Communications Manager Kate Abbotson. “And that includes the Coca-Cola portfolio, accounting for 63.1% of value sales in cola [Nielsen, Total Coverage, value sales, 52 weeks MAT to 26.01.2026]. Coca-Cola Original Taste continues to hold its position as GB’s number one soft drink and is now worth £904.25m in retail value [ibid], while Coca-Cola Zero Sugar has grown to £483m [ibid].”
Meanwhile, flavour-led innovations like Coca-Cola Cherry Float, launched in February, tick the nostalgia box as well as tapping into the cherry trend. “Cherry variants in particular have delivered £287m in value sales over the past year [ibid],” says Abbotson. “Reflecting this momentum, Diet Coke, now worth £499m [ibid], has added a permanent cherry variant to its range with Diet Coke Cherry.”
While certain cola lines are guaranteed to fly off shelves, the category powerhouse within soft drinks is Sports & Energy, which contributed 35% of all soft drinks growth [Nielsen Scantrack, Total Coverage, 52 weeks to 10 Jan 2026].
Monster is now worth over £856m [Nielsen GB, Total Coverage, L52 weeks to 27.12.2025] and its innovation has driven more than half of energy drinks’ innovation sales in the last year [Nielsen, Total GB, MAT to 22.03.26], claims Coca-Cola Europacific Partners.
Monster Ultra Vice Guava is the brand’s latest NPD, rolling out nationwide from late July. Guava flavours have grown by over 22% in the last two years [GlobalData Flavour Review], and Monster Ultra Vice Guava has become Monster’s bestselling Ultra flavour in the US [Nielsen Total US xAOC + Convenience L13 weeks, units sold and UROS to 12.07.2025].
Monster is not the only hero in Sports & Energy. Red Bull claims it accounts for over 37% of category sales and delivers double-digit growth year on year [NIQ Scantrack, Total Coverage, 52 weeks to 31.01.2026].
The brand recently released its Summer Edition Citrus Zest, flavoured with Sudachi lime, which will be supported by a ‘Work Off. Summer On.’ marketing campaign launching this month.
Red Bull recognises that the energy market is evolving, with certain ingredients and functions coming to the fore. “Gut health, protein and emerging functional ingredients are creating new categories within categories,” says a spokesperson. “However, the biggest beneficiary of the ‘functional trend’ in cash terms is functional energy – driven by Red Bull and Monster.”
Red Bull adds that energy drinks typically require significantly more space than they did a year ago. “Ensuring enough space is available for fast sellers needs to be a focus – with 88% of Sports & Energy sales coming from just three brands (Red Bull, Monster and Lucozade Energy).”
Functionality has become an increasingly important driver when choosing a soft drink, concurs Lucozade brand owner Suntory Beverage & Food GB&I. The company recently added Grafruitti Zero Sugar to Lucozade Energy’s permanent line-up, following a full-sugar limited-edition launch in 2015.
“Well over half (61%) of soft drink purchasers would like to see more soft drinks with additional health benefits [Mintel Soft Drinks Review 2025],” says Sales Director Alpesh Mistry. “This desire for ‘something extra’ is particularly strong among young adults, with interest in functional soft drinks peaking at 77% among 16–34-year-olds [MTP Trends Framework 2026–28]. Consumers are primarily looking to soft drinks to provide the benefits they need, with two-thirds (67%) preferring to drink a soft drink with added health advantages rather than take a vitamin supplement offering the same effect [ibid].”
Gray has also picked up on the category’s appeal among young adults, noting that nearly half of Gen Z (49%) are already switching towards functional drinks [VYPR Predict, 500+ 18–45-year-old OFC/Adult Soft Drinks/Wellness Drink buyers, Sept 2025]. “With this cohort set to account for 39% of UK retail spend by 2030 [Accenture Strategy and Clearpay], their influence on the category will only accelerate,” he says.
He points to Modern Soda – clean-label, better-for-you carbonates often featuring functional attributes – as a segment well placed to meet this demand.
“Modern Soda is perhaps the standout story, up +684% in value year on year in Scotland from a still-small base [Circana Scotland Convenience value sales to 11.04.2026], which tells you two things: the momentum is extraordinary, and the headroom for further growth is enormous,” says Gray.
It’s Giving from Fizz with Purpose, a gut-friendly modern soda, launched on 30 March 2026 in three flavours: Apple & Elderflower, Black Cherry, and Mango & Passionfruit.
“Functional soft drinks have historically entered the market at £2.50, £3 or more – price points that limit their relevance in convenience,” says Gray. “At £1 PMP in a 330ml can, It’s Giving changes that proposition entirely, opening up a much larger pool of potential shoppers and making gut-friendly soft drinks a realistic everyday purchase rather than an occasional treat.”
Consumers are also seeking out water with added functionality. Water and Water-Plus are delivering strong year-round growth in Scotland, up +10.2% year on year, while wellness-led soft drinks are up +23.8% year on year [ibid].
The Flavoured Water category, such as Rubicon’s Twist range of still spring waters available in Tropical Burst, Peach Punch, Berry Blast and Mango Mist, is driving growth, says an AG Barr spokesperson. However, products layering functional benefits on top are doing “even more heavy lifting”, with functional waters now among the fastest-growing segments in soft drinks.
“This growth is driven by an accelerated consumer trend for hydrating more effectively, with 30% of functional water shoppers choosing electrolytes [Global Insight Services, Functional Water Market Analysis, July 2025],” he says.
Boost Water+ is meeting this demand with its zero-sugar electrolyte waters, available in Cherry, Citrus and Strawberry & Peach flavours. Consumer research shows 94% of shoppers loved the taste, with more than 90% saying they would buy them [AG Barr Consumer Market Research 2024].
Retailers looking to strengthen their soft drinks fixture this summer should ensure the right balance of established bestsellers and emerging trend-led products. As CCEP’s Abbotson puts it: “By understanding key trends, optimising product selection and leveraging activations linked to summer occasions, wholesalers and retailers can unlock the full potential of soft drink sales.”
