Editor’s Note: Welcome to the third installment of our series on The Changing Consumer. While our previous articles explored <\/span><\/span>shifting spending habits<\/a><\/span> and <\/span><\/span>generational differences<\/a><\/span>, this piece examines perhaps the most tangible transformation happening right now\u2014the way people drink. As consumers continue to tighten their belts on discretionary spending and rethink their relationship with alcohol, beverage programs have emerged as the hospitality industry’s most flexible and profitable creative opportunity.<\/span><\/span><\/p>\n Five years ago, <\/span>the event bar <\/a><\/span>was simple: beer, wine, liquor, soft drinks. Guests grabbed something quickly and moved on. The beverage program was an operational necessity, not a strategic priority.<\/span><\/p>\n Today, the bar is where guests linger. It’s where they create and share experiences. <\/span>Layered<\/a><\/span> mocktails earn as many photographs as the venue itself. Functional cold brews spark conversations about <\/span>wellness and productivity<\/a><\/span>. Dirty sodas get customized with the same care once reserved for craft cocktails. The beverage station isn’t just part of the event\u2014it is the event.<\/span><\/p>\n Related:<\/span>Expanding Cold Chain Visibility Across Air, Sea, and Rail<\/a><\/p>\n \u201cBeverages are the new frontier of brand identity,\u201d said Bradley Bolton, Director of Operations at Stories Coffee Company, during a session at the 2026 National Restaurant Show. \u201cThe rise of mocktails, enhanced water, and functional drinks isn’t a fad\u2014it’s a fundamental shift in how guests define a great experience.”<\/span><\/p>\n This shift runs deeper than aesthetics or trends. Beverages have evolved from margin fillers to profit drivers. They’ve shifted from afterthoughts to strategic differentiators. What guests hold in their hands now shapes how they remember your event\u2014and whether they’ll return.<\/span><\/p>\n Registration is now live! Join us at <\/span>Cater+Event 2027 <\/a><\/span>in New Orleans as new trends, products, and ideas in catering and events are revealed during this remarkable industry gathering. <\/span>CLICK HERE TO LEARN MORE<\/a><\/span><\/p>\n<\/blockquote>\n<\/div>\n The financial stakes reflect this shift. The functional beverages market reached <\/span>$178.9 billion.<\/a><\/span> in 2026, representing a significant portion of the broader specialty beverage category valued at <\/span>$217.99 billion.<\/a><\/span><\/p>\n \u201cWe have to craft experiences, not just cocktails,\u201d said Marcus Merritt, Restaurant Consultant at Oliva Restaurant Group, during a session at the 2026 National Restaurant Show.<\/span><\/p>\n Understanding why beverages matter is only half the equation. Understanding who’s driving these changes reveals the deeper transformation underway.<\/span><\/p>\n The beverage boom reshaping events isn’t driven by taste alone\u2014it’s driven by economics. Strong profit margins and operational advantages have aligned with changing consumer preferences to make beverage programs the most strategic investment in modern hospitality.<\/span><\/p>\n Related:<\/span>Six Experiential Food & Beverage Innovations That Deliver the WOW Factor<\/a><\/p>\n Beverages deliver <\/span>profit margins<\/a><\/span> that dwarf traditional food items\u2014often reaching 80-90% for specialty drinks compared to 30-40% for plated meals\u2014a critical advantage when catering operations face unprecedented cost pressures.<\/span><\/p>\n Beyond margins, beverages solve operational challenges that plague food service. Most innovative drinks require minimal kitchen infrastructure and limited prep time\u2014critical advantages given persistent labor shortages and rising real estate costs.<\/span><\/p>\n But the real game-changer is consumer behavior. Today’s consumers demonstrate a remarkable willingness to pay premium prices for distinctive beverage offerings, particularly when those beverages aren’t easily replicable at home.<\/span><\/p>\n Guests want their beverages to be Instagramable, and this has been a big reason for colors and branding. Photo courtesy Chowgirls Catering<\/p>\n<\/div>\n The marketing multiplier amplifies these benefits further. When guests photograph and share visually striking drinks, they provide organic endorsements\u2014marketing that extends well beyond the event itself and carries more weight than paid advertising.<\/span><\/p>\n “The offerings need to be Instagramable before they are ever tasted,” says Sebastien Centner, Founder & Creative Director for Eatertainment Events & Catering. “This is not that far of a departure from the age-old approach that people ‘eat with their eyes before the food ever touches their palate’ but now it’s accentuated by social media and applies to beverages.”<\/span><\/p>\n Related:<\/span>When a Fashion Show Meets Four-Course Dining<\/a><\/p>\n Yet these visual and economic trends are symptoms of something deeper\u2014a fundamental transformation in drinking culture itself.<\/span><\/p>\n Beneath the photogenic presentations and social media moments lies a more fundamental transformation in how people relate to alcohol itself\u2014a shift driven by changing values and health consciousness that’s reshaping social norms around drinking.<\/span><\/p>\n Gen Z leads this transformation, drinking <\/span>20% less<\/a><\/span> alcohol than Millennials yet spending more on experiences and premium beverages\u2014a paradox that reveals where the industry is headed.<\/span><\/p>\n “Gen Z really has redefined how we’re drinking and how we vibe,” said Merrit. “Accounting for the smallest percentage of alcohol sales, but accounting for the largest percent of non-alcoholic or alternative beverage sales\u2013they are still gathering, but they are just drinking differently.”<\/span><\/p>\n Younger consumers increasingly visit venues specifically for beverage experiences, rather than treating the bar as a supplement to dining. The drink has become the destination.<\/span><\/p>\n This shift extends far beyond Gen Z. American alcohol consumption has reached its lowest point in decades, with just <\/span>54%<\/a><\/span> of adults currently drinking. What began as a generational preference is becoming a cultural norm.<\/span><\/p>\n \u201cOlder generations still drink, but they may have curbed the drinking for health reasons but it is still generally the poison of choice and part of our social culture,\u201d says Centner.<\/span><\/p>\n Many cocktails can be transitioned into non-alcoholic versions, such as an Appletini (left) featuring fresh apple juice, lemon juice, and simple syrup; and a French 75 (right) featuring simple syrup, lemon juice, and sparkling water. Photo courtesy Eatertainment Events & Catering<\/p>\n<\/div>\n For hospitality professionals, this cultural shift demands more than menu adjustments. Gen Z consumers expect beverage programs that align with their values\u2014from ingredient transparency and visual appeal to meaningful social shareability. They’re not passive consumers; they’re active participants who shape trends through their choices and social media engagement.<\/span><\/p>\n This cultural and economic revolution manifests in four interconnected beverage movements: mocktails commanding premium prices, dirty sodas creating cult followings, functional beverages promising wellness benefits, and cannabis drinks entering mainstream venues. Each represents not just a trend, but a fundamental shift in how guests define a great drinking experience.<\/span><\/p>\n Sophisticated <\/span>‘no and low’ alcohol options<\/a><\/span> have evolved from afterthoughts to menu centerpieces in just a few years, with attendees now expecting complexity matching traditional cocktails.<\/span><\/p>\n Consumer awareness of low-alcohol cocktails has reached <\/span>63%<\/a><\/span>, with <\/span>over half<\/a><\/span> of Gen Z now choosing mocktails during social occasions. This isn’t curiosity\u2014it’s a <\/span>$157 billion<\/a><\/span> global market expected to grow <\/span>50%<\/a><\/span> by 2030.<\/span><\/p>\n Sugary sodas have given way to elevated experiences. Foodservice professionals now craft house-made botanical tonics featuring ingredients like elderflower and lavender alongside cold-brewed aromatic teas with fruit shrubs and alcohol-free spirits from distilled botanicals.<\/span><\/p>\n “Spirit-free cocktails have come a long way from being solely juice- or soda-based,” notes Chowgirls Catering.<\/span><\/p>\n Steeped teas and herbs can be used as a way to capture the nuance of alcoholic spirits. A drink using simmered juniper berries can give the essence of gin or Lapsang tea can mimmic the smoky idea of mezcal.\u00a0Photo courtesy Chowgirls Catering<\/p>\n<\/div>\n Non-alcoholic spirits and wine now <\/span>rank as the seventh<\/a><\/span> most-used ingredient type across restaurant menus\u2014ahead of tequila and Cognac\u2014signaling their mainstream acceptance.<\/span><\/p>\n Premium mocktails deliver a profit paradox: pricing comparable to alcoholic cocktails ($12-$15) with significantly lower ingredient costs (often under $2) and zero liquor licensing requirements. This margin advantage makes them one of the most profitable items on any beverage menu.<\/span><\/p>\n \u201cLow-alcohol beverages allow consumers to blend in during social situations, eliminating the stress of standing out,” said Suzy Badaracco, President at Culinary Tides Inc., during a session at the 2026 National Restaurant Show.<\/span><\/p>\n Investment patterns confirm the shift. <\/span>According to the National Restaurant Association<\/a><\/span>, 49% of full-service operators are now adding alcohol-free cocktails\u2014nearly matching the 55% adding mixed cocktails. This near-parity signals that mocktails have moved from niche offering to core menu category.<\/span><\/p>\n “Your guest today that orders a mocktail can still be your guest tomorrow that’s ordering an alcoholic beverage,” said Merritt. “Your Gen Z guests might love to order a margarita, but then right after they might order a non-alcoholic beverage or a mocktail. These things are still making you money. It’s important to note that.”<\/span><\/p>\n Meeting this demand requires rethinking how beverages are presented entirely\u2014not simply adding mocktails to existing menus.<\/span><\/p>\n Forward-thinking operators understand that integration matters. Instead of a separate “Mocktails” section, they list drinks by style\u2014”Refreshing,” “Spirit-Forward,” “Aromatic”\u2014with both alcoholic and non-alcoholic options in each category. This approach normalizes non-drinking while making it easy for guests to find drinks matching their preferences.<\/span><\/p>\n This integration requires treating mocktails with the same seriousness as craft cocktails: house-made syrups, fresh juices, premium garnishes, and thoughtful presentation.<\/span><\/p>\n \u201cWith people drinking less alcohol, they want more than just soft drinks and mineral waters\u2014they want the flavors of cocktails without the alcohol itself,\u201d Centner explains. \u201cPeople are always surprised when you can create a good non-alcoholic offering because they’re used to seeing minimal effort and lackluster results. Just as the vegetarian alternative for a plated dinner can’t appear like an afterthought, the same applies to the non-alcoholic beverage.\u201d<\/span><\/p>\n One of the most unexpected beverage trends comes from an unlikely source: Utah’s soda culture, where religious restrictions on alcohol have created a unique soft drink tradition. Dirty sodas\u2014beverages made by combining soft drinks with flavored syrups, fruit pur\u00e9es, and cream\u2014have exploded beyond their Mormon origins to become a nationwide phenomenon that perfectly captures the intersection of customization, affordability, and social media appeal driving today’s beverage boom.<\/span><\/p>\n “This is a trend that is sweeping the industry,\u201d said Chef Nettie Frank during <\/span>Art of Catering Food 2026.<\/a><\/span> \u201cIn Utah, soda is not just a drink, it is an expression of your personality.”<\/span><\/p>\n The growth has been remarkable. Swig, the first dedicated dirty soda shop, opened in Utah in 2010 and now has 100 stores nationwide with plans for another 150. Their competitor, Sodalicious, currently has 25 shops with plans to double over the next few years. Both experienced almost 50% growth last year.<\/span><\/p>\n Chef Nettie Frank mixed up dirty sodas for attendees during Art of Catering Food 2026. Photo courtesy Dana Gibbons Photography<\/p>\n<\/div>\n Pop culture has also accelerated the trend. The Hulu series <\/span>The Secret Lives of Mormon Wives<\/span><\/span> has played a significant role in popularizing dirty sodas, with cast members showcasing their favorite combinations and helping propel the drinks into the national spotlight.<\/span><\/p>\n The business case is equally compelling. Dirty sodas typically retail for $5-$8, with ingredient costs under $1\u2014margins that exceed traditional cocktails. Dirty soda stations can generate significant incremental revenue, particularly at <\/span>daytime<\/a><\/span> or <\/span>children\u2019s events <\/a><\/span>where alcohol consumption is lower. The visual appeal drives social media sharing, creating organic marketing that extends well beyond the event itself.<\/span><\/p>\n \u201cIt\u2019s all the same items you were going to have in your bar anyway,\u201d said Frank, \u201cyou\u2019re just going to be a little bit more interactive and intentional with it.\u201d<\/span><\/p>\n This operational simplicity masks a deeper insight. The dirty soda phenomenon demonstrates a broader truth about modern beverage service: guests buy experiences and memories through moments of personalization\u2014not just drinks. This explains why a soda with syrup and cream can generate the same excitement as a craft cocktail: both deliver customization and shareability, but dirty sodas do it at a price point accessible to everyone.<\/span><\/p>\n “You are creating an experience for your client and their guests,\u201d said Frank. \u201cWith coconut creamer and vanilla syrup added to a Dr. Pepper, it now takes you to your favorite tropical vacation. It’s not just another flavored soda, it’s a customization to a favorite memory. Even though there’s no alcohol, you’re still bringing them an experience.”<\/span><\/p>\n Today’s beverage consumers seek drinks that work for them, delivering functional benefits beyond simple refreshment. Whether it’s improved immunity and enhanced energy or better focus and stress reduction, functional beverages promise tangible benefits that justify premium prices. And the market has responded; <\/span>64%<\/span><\/span> of consumers have expressed interest in functional beverages.<\/span><\/p>\n \u201cIt\u2019s this idea that it has to do something for me, it can\u2019t just taste good,\u201d <\/span>said Kelly Dykhuizen<\/a><\/span> in <\/span>Datassential\u2019s Future Drinks<\/span><\/span> webinar.<\/span><\/p>\n The Javo beverage brand offers functional beverages including energy lemonades, iced teas, and cold brew coffee. Photo courtesy Javo<\/p>\n<\/div>\n Operators are responding with significant menu investments. According to the <\/span>National Restaurant Association<\/a><\/span>, nearly half (46%) are adding functional coffees, while substantial percentages are expanding teas (31%), smoothies (29%), lemonades (27%), energy drinks (26%), and dedicated wellness beverages (24%). These represent strategic bets on categories that drive traffic and differentiation.<\/span><\/p>\n The functional beverage landscape has exploded with innovation across multiple benefit categories:<\/span><\/p>\n Energy and focus<\/span><\/span>: Functional coffees and teas enhanced with adaptogens (stress-fighting botanicals) and nootropics (cognitive enhancers) promise sustained energy without the crash.<\/span><\/p>\n<\/div>\n<\/div>\n<\/li>\n Mood and stress:<\/span><\/span>Beverages featuring ashwagandha, turmeric, and CBD target emotional wellness, offering relaxation and mood support in drinkable form.<\/span><\/p>\n<\/div>\n<\/div>\n<\/li>\n Physical wellness:<\/span><\/span> Hydrogen-infused waters, detoxifying cocktails, and protein-enhanced beverages promise everything from improved hydration to meal replacement functionality.<\/span><\/p>\n<\/div>\n<\/div>\n<\/li>\n<\/ul>\n<\/div>\n The rise of GLP-1 medications like Ozempic and Wegovy has also created an unexpected beverage opportunity. These weight-loss drugs reduce appetite and slow digestion, leading users to seek beverages that provide nutrition and satiety while delivering satisfaction in smaller volumes.<\/span><\/p>\n Beverage brands are responding with formulas that pair protein and fiber with enhanced texture and mouthfeel. Operators have launched protein cold foams, while developing concentrated protein beverages that function as meal replacements. These drinks satisfy both physically (through nutrition) and psychologically (through substantial texture and flavor), meeting the needs of guests who want nourishment without large portions.<\/span><\/p>\n Digestive health represents another major functional category, driven by growing consumer awareness of the gut microbiome’s impact on overall wellness. Fermented beverages\u2014from kombucha to kefir, plus fruit-fermented juices\u2014offer live cultures and complex flavors that blend ancient tradition with modern wellness trends.<\/span><\/p>\n The key is education\u2014but not in a clinical way. Rather than listing ingredients and benefits on menus, successful operators tell stories: ‘This turmeric-ginger tonic supports your afternoon energy without the coffee crash’ or ‘Our adaptogen-infused lemonade helps you stay calm and focused during networking.’ When guests understand what they’re getting and why it matters\u2014and when the beverage delivers on taste\u2014functional drinks become memorable elements of the event experience that command premium pricing with margins that rival alcoholic cocktails.<\/span><\/p>\n While functional ingredients and creative customization are reshaping non-alcoholic offerings, perhaps no category represents a more dramatic shift in social drinking culture than hemp-derived THC beverages. What was unthinkable five years ago\u2014a corporate event bar serving zero alcohol, with guests networking over THC-infused seltzers\u2014has become unremarkable in legal states. The transformation has been swift and significant, showing no signs of slowing.<\/span><\/p>\n \u201cI personally think we have lived through the craft beef renaissance. Craft beer had its moment, but now people are looking for something new,\u201d said Christopher Amason with Poe\u2019s Tavern during a session at the 2026 National Restaurant Show. \u201cNow we’re living in the THC derived seltzer renaissance, and we should be excited about that.\u201d<\/span><\/p>\n Major venues in legal states now offer dedicated THC beverage menus with a dozen or more options. These aren’t underground venues or niche gatherings\u2014they’re mainstream <\/span>corporate events,<\/a><\/span> music festivals, and wedding receptions at established venues.<\/span><\/p>\n “Most major shifts in hospitality start small, until suddenly they’re everywhere,” said Collin Kerrigan, founder of Torch Drinks, during a session at the 2026 National Restaurant Show. “This is no longer a niche category, it is entering mainstream consumer behavior.”<\/span><\/p>\n The 2026 National Restaurant Show featured samples from several hemp-derived beverage companies. Photo courtesy National Restaurant Association<\/p>\n<\/div>\n The market trajectory is remarkable. Industry projections estimate the THC beverage category will reach <\/span>$14.9 billion to $21 billion by 2030<\/a><\/span>, with <\/span>seven to 10 million active consumers spanning ages 21 to over 65<\/a><\/span>. Popular brands like Cann, Wunder, Keef, and Pabst Labs are now commonly featured at mainstream venues.<\/span><\/p>\n The economics are also compelling. Event planners consistently report that clients increasingly request THC beverage options alongside traditional bar service, and venues now actively promote their THC beverage menus as competitive differentiators.<\/span><\/p>\n \u201cIt shows how much the tide has shifted,\u201d said Shawn Hauser, Partner at Vicente LLP and chair of the Hemp Practice Group during a session at the 2026 National Restaurant Show.<\/span><\/p>\n This rapid adoption reflects powerful consumer demand driven by three fundamental shifts: declining alcohol consumption among young adults, growing health consciousness around alcohol’s effects, and the search for social alternatives that maintain wellness priorities.<\/span><\/p>\n\n
Pouring profits<\/h2>\n
![\"53380748643_0e2843a6fb_o.png\"](\"https:\/\/eu-images.contentstack.com\/v3\/assets\/bltd086b08e43bf43d2\/bltef136a2390dcca2b\/6aaac45ec5c0ce4ad9ae7bcd\/53380748643_0e2843a6fb_o.png?width=1400&auto=webp&quality=80&disable=upscale\" "\\"53380748643_0e2843a6fb_o.png\\"\/")
<\/p>\nThe culture has already shifted<\/h2>\n
![\"Mocktail_Group.png\"](\"https:\/\/eu-images.contentstack.com\/v3\/assets\/bltd086b08e43bf43d2\/bltaa7d2d9a354fe9f2\/6aaac819e6ac8474c51729df\/Mocktail_Group.png?width=1400&auto=webp&quality=80&disable=upscale\" "\\"Mocktail_Group.png\\"\/")
<\/p>\nBeyond the booze<\/h2>\n
![\"54251061528_b0b80312e3_o.png\"](\"https:\/\/eu-images.contentstack.com\/v3\/assets\/bltd086b08e43bf43d2\/blte75bf8b9cb298a73\/6aaaccc7c5c0ce8500ae7bdc\/54251061528_b0b80312e3_o.png?width=1400&auto=webp&quality=80&disable=upscale\" "\\"54251061528_b0b80312e3_o.png\\"\/")
<\/p>\nSweet success and the soda renaissance<\/h2>\n
![\"BT3A6525_(1).png\"](\"https:\/\/eu-images.contentstack.com\/v3\/assets\/bltd086b08e43bf43d2\/blteaf60aa436d25414\/6aaacee6f1fb6b405e16fb67\/BT3A6525_(1).png?width=1400&auto=webp&quality=80&disable=upscale\" "\\"BT3A6525_(1).png\\"\/")
<\/p>\nFunction meets flavor<\/h2>\n
![\"Javo_Beverage_Company_Lemonades_Iced_Teas.png\"](\"https:\/\/eu-images.contentstack.com\/v3\/assets\/bltd086b08e43bf43d2\/bltf6c0ec25d726a6ba\/6aaad0c7e6306a2f9258a1cf\/Javo_Beverage_Company_Lemonades_Iced_Teas.png?width=1400&auto=webp&quality=80&disable=upscale\" "\\"Javo_Beverage_Company_Lemonades_Iced_Teas.png\\"\/")
<\/p>\n\n
The green rush comes to events<\/h2>\n
From niche to mainstream<\/h4>\n
![\"_DA_4080_(1).png\"](\"https:\/\/eu-images.contentstack.com\/v3\/assets\/bltd086b08e43bf43d2\/blt14125e7cd8fdf875\/6aaad984c344b0eee7890512\/_DA_4080_(1).png?width=1400&auto=webp&quality=80&disable=upscale\" "\\"_DA_4080_(1).png\\"\/")
<\/p>\n