FOCUS ON: Six things you need to know about water, juice and milk drinks

1. How are the sub-categories performing?

2. How much does hot weather really matter?

3. What are the key trends in the category?

4. Functional drinks are dominating innovation

5. But customers still focus on taste

6. Maximising your offering

1. How are the sub-categories performing?

Danone’s director of category & commercial strategy UK&I, Matthew Thomas highlights how water is performing in the convenience channel. “We’re seeing bottled water continue to stand out compared to soft drinks, driven by health-led hydration trends and on-the-go consumption. The category is growing strongly, with value up +13.4% and volume +11.4%, outperforming the wider soft drinks market, with more shoppers buying water in convenience (penetration +1.63%).”

He attributes the success of water to changes in drinking of a different kind. “We know this is closely linked to shifting consumer habits. As shoppers increasingly moderate their alcohol intake and prioritise wellbeing, water has become the default choice when they’re not drinking alcohol.”

Senior external communications manager at Coca-Cola Europacific Partners Kate Abbotson explains the impact of the juice sub-category.

“Juice drinks remain an important segment within the soft drinks category, providing a refreshing, fruity option for people to enjoy alongside a meal or snack whilst at home or on the go. Oasis continues to deliver growth, as the number one juice drinks brand in GB retail, now worth £120.87m in value. Value sales are up 8.8% highlighting sustained consumer demand for juices in the category.

”Oasis returns this summer with a new campaign to help combat the dryness of adulting. Running from July to September, this promises to be even bigger and better than last year. The campaign is designed to help young adults stuck in the dry routines of everyday adulting reclaim a moment of carefree relief in their daily lives.”

Mars Drinks & Treats general manager Kerry Cavanaugh explains how the dairy sub-category is doing. The soft drinks market continues to perform strongly, with flavoured milk standing out as a key growth area. In convenience, flavoured milk sales are up 13.8% to £382.1m, with the channel accounting for 44% of the total £863.7m category.

“Chocolate-flavoured milk remains a shopper favourite, with sales up 8.9% to £167.1m and more than 117.2 million drinks sold each year, accounting for 19.4% of total category sales,” says Cavanaugh.

Meanwhile, UK marketing director at Yoplait Ewa Moxham, outlines the growth areas. “Format and flavour continue to underpin growth. The 500ml format is the best-selling pack, demonstrating continued demand for convenient, affordable formats that work both on-the-go and at home. Strawberry remains the top-performing flavour, with 500g growing by +8.4% value sales growth year-on-year and the 825g growing at +244% year-on- year.

”Within kids’ dairy drinks, Petits Filous Mess Free Strawberry Drink remains the number one kids’ yoghurt drink, worth £600k, highlighting continued demand for convenient, nutritious options for families.”

2. How much does hot weather really matter?

With brands focused on year-round success, do the traditional seasons make that much of a difference for a category like soft drinks? Suntory Beverage & Food GB&I sales director Alpesh Mistry believes so.

“During the summer months, soft drinks see a significant jump in sales, typically rising about 27% compared to the rest of the year, excluding December, which also sees a seasonal uplift during the festive season.

“Warmer weather impacts sales across all channels with the rise of grab and go moments. For example, in 2025 we had one of the hottest summers on record, which drove +7.2% growth for soft drink sales versus the previous year. It highlights an opportunity for retailers to boost sales, with shoppers reaching for refreshment and hydration more often as they get outdoors, become more active, host BBQs and garden gatherings and come together to enjoy the weather.”

3. What are the key trends in the category?

A F’real spokesperson explains how comfort is key for some consumers. “Shoppers are gravitating towards nostalgic, comforting flavours, particularly those focused on confectionery and bakery trends.

“What’s particularly interesting is that some of the more traditional core flavours like strawberry are declining in share, signaling a shift towards more novel and indulgent options. We’re also seeing more collaborations across confectionery, coffee and entertainment, giving consumers instantly recognisable and exciting flavour cues.”

Danone’s Thomas adds: “Across our brands, we’re also seeing strong momentum in flavoured water, as consumers look for tasty options without compromising on health. Volvic Touch of Fruit is a clear example of this, contributing around 21% of total water category growth, based year‑on‑year value sales growth across the total water category.”

4. Functional drinks are dominating innovation

According to Cavanaugh, protein milk drinks are seeing significant growth, with sales up 20.4% to £97.4m. One in 10 bottles of flavoured milk sold is a protein milk drink, with 51.4 million units purchased over the past year. “Demand for dairy drinks that deliver both great taste and functional benefits like protein continues to grow across all convenience shoppers,” says Cavanaugh. “Mars Drinks & Treats (MD&T) have combined the popularity of chocolate-flavoured milk and the growing demand for protein milk drinks with Mars and Snickers Hi Protein milk drinks. Each serving contains 20g of protein and 158 calories, tapping into consumer demand for soft drink options that deliver added nutritional value without compromising on taste.

“Our Hi Protein milk drinks combine well-known brands and popular flavours with added protein, helping to draw attention to the fixture. As HFSS-compliant products, they also support retailers in offering great-tasting soft drink options that align with healthier eating guidelines.”

Mistry explains how important functional is to the category. “Functionality has become an increasingly important driver when it comes to choosing a soft drink, with shoppers actively seeking drinks that offer more than refreshment alone.

“Well over half (61%) of soft drink purchasers would like to see more soft drinks with additional health benefits. This desire for “something extra” is particularly strong among young adults, with interest in functional soft drinks peaking at 77% among 16 to 34‑year‑olds. Consumers are primarily looking to soft drinks to provide the benefits they need, with two-thirds (67%) of consumers preferring to drink a soft drink with added health advantages rather than take a vitamin supplement offering the same effect.”

Danone’s Thomas agrees that functional is in growth across the sub-categories. “We’re seeing rising interest in functional drinks that offer clear, everyday benefits and are easy to build into everyday routines. Importantly, shoppers are looking for choice – from products with added functional or fortified benefits, to options with simpler ingredient lists – depending on their individual needs and preferences.

“In dairy, this is reflected through a range of formats and benefits. Actimel Simple for example, sits within this broader portfolio approach, offering a shorter ingredient list and immune system support* as one of many options to meet diverse consumer demands, while kefir continues to perform strongly as the focus on gut health broadens from digestion to whole-body health, with strong growth expected over the next two years (+10% total gut health; +25% kefir).

“A similar shift is playing out in water, where shoppers are increasingly looking for drinks that offer more than hydration alone. Functional hydration is emerging as a growing trend, with consumers wanting water that delivers tangible everyday benefits alongside great taste to support on‑the‑go lifestyles.

“We’ve responded to this shift with innovations like Volvic Vitamin+, launched across the UK and Ireland in April 2026. The 75cl bottles are designed for on-the-go occasions where healthy choices are becoming increasingly important, with Recharge Raspberry having Magnesium and Vitamins B5, B6 & C which helps to reduce tiredness and fatigue, and Active Peach including Magnesium and Vitamins B5, B7 & C to support normal energy-yielding metabolism.”

5. But customers still focus on taste

F’real explains that shoppers want the best of both worlds when it comes to drinks. “Functionality is on the rise, but crucially, it’s not replacing indulgence, it’s sitting alongside it. There’s a clear ‘permission to indulge’ mindset emerging. Even within a treat-led category, over 40% of milkshake occasions are driven by functional or convenience needs, showing that shoppers want both benefits and enjoyment.”

Suntory Beverage & Food GB&I’s Mistry adds that taste and flavour are strong engagement tools for brands. “Offering exciting new flavours is one of the most effective ways to engage shoppers, with bold, vibrant tastes helping to break routine and capture attention. Flavours are a major purchase driver, particularly for consumers who prefer zero sugar soft drinks, with nostalgic and familiar tastes continuing to resonate strongly. At SBF GB&I, we consistently track emerging trends and consumer insights to inform the development of new flavours across our portfolio.

“Our newly launched Ribena Summer Fruits is a great example. Available in all three formats – squash, carton, and RTD – the latest product taps directly into this growing demand for flavour‑led refreshment and giving retailers a compelling new option to drive incremental sales.”

6. Maximising your offering

F’real’s says “execution is everything when it comes to impulse”.

“Having clean, well-stocked chillers are the baseline, but theatre is what really drives conversion. That’s particularly important in the current context, where visits in convenience are declining but spend and servings are increasing, meaning retailers need to maximise each shopper interaction.

“Creating an engaging, visible and interactive experience helps turn the chiller into a destination and drives higher-value purchases.”

They add: “Nothing beats sampling when it comes to driving trial. When you have a product that delivers on taste, a small sample is often all it takes to convert a shopper into a repeat customer.

“We’ve also seen strong results from simple, engaging activations. For example, our ‘Shake of the Day’ campaign with one of our independent convenience stores, TJ’s Late Shop. Here they offered a different flavour shake each day at 50% off, encouraging shoppers to try something new beyond their usual choice.

”Combined with local social media support, it created real buzz in-store and helped bring new shoppers to f’real while reinforcing frequency with existing fans.”

Moxham offers some tips for retailers. “Merchandise by occasion, not just brand - create clear cues for key missions such as breakfast, lunchbox and on-the-go as grouping complementary formats together can help shoppers navigate quickly and encourage incremental purchases.

“Highlight health credentials clearly – use shelf-edge labels and POS to call out key benefits such as protein, calcium and vitamin D. Clear nutritional messaging helps reassure parents and health-conscious shoppers, and reinforce value perception. Leverage multipacks, larger formats and price-marked packs to reassure cost-conscious shoppers. Clear pricing communication builds trust and supports repeat purchase.”