The 26th annual UK Soft Drinks Conference was hosted by FoodBev Events on 12 May 2026, taking place at the historic Church House Westminster in London. From circular economy efforts to premium functional beverage opportunities, topics explored throughout the day provided food for thought as industry leaders gathered to discuss the commercial opportunities shaping future growth in the category. Read on for an overview of the highlights.

This year, the event’s theme, ‘Beyond Thirst,’ guided discussions from leading voices within the UK’s soft drinks industry as attendees – from retail buyers to ingredient houses, brand founders and more – considered how evolving consumer priorities are redefining brand development and product innovation.

Guests arrived at the grade II listed Church House – situated in the idyllic Dean’s Yard, with beautiful views of Westminster Abbey and Big Ben – ready for a day of insightful conference sessions and valuable networking opportunities.

Market view

The programme began with a review of 2025, and an overview of the key issues facing the industry in 2026, delivered by British Soft Drinks Association president and Radnor Hills CEO, William Watkins.

“Soft drinks are an important part of the retail offer, hospitality, the on-trade and the convenience sector, where as many as one in five of all purchases made is a soft drink,” Watkins said, highlighting the opportunities offered by the category – one he describes as “exciting, exhilarating and dynamic,” contributing £5.6 billion to the UK economy each year.

Watkins praised the industry’s efforts to reformulate to address health concerns, with the average sugar content of soft drinks falling almost 50% since 2018, and seven in ten soft drinks now sold in the UK being low-sugar or sugar-free. Additionally, he cited flavour innovation, functional benefits and strong promotional activity as key drivers of 2025’s growth in categories such as carbonates, energy drinks, juices and flavoured water.

However, he pointed to significant industry challenges ahead, including the implementation of the Deposit Return Scheme (DRS), Extended Producer Responsibility (EPR) and the government’s new Nutrient Profile Model – if applied to mandatory policy reporting, categories such as juice would be considered ‘less healthy’ and penalised, Watkins emphasised.

Richard Lee, business unit director for drinks at Worldpanel by Numerator, then stepped up to the podium to discuss economic, retail and consumer developments and opportunities. He drew attention to how geopolitical and economic factors have impacted consumer buying behaviours, with a rising portion of households struggling financially due to rising cost of living.

“Macroeconomic uncertainty absolutely drives short-term behavioural change, but the job for all of us…is to focus on where our long-term success can be derived from – at Worldpanel we know that long-term success really comes from addressing consumer need,” he stated.

Five key consumer needs – health, taste, energy, hydration and the ‘anytime treat’ – are shaping the industry, Lee explained, with health and functionality offering a huge value opportunity – consumers are prepared to pay almost five times the average price for brands in this space against the wider soft drinks category average. However, taste remains the key driver of purchases across soft drinks and alcohol alternatives.

He prompted brands to consider who their competition is within their targeted consumer need state, how they will defend their space, and what their core focus is today to drive future growth.

This was followed by panel discussions on market growth and industry leadership priorities, joined by experts from Tesco, British Soft Drinks Association, Innocent Drinks, Nestlé Waters and Premium Beverages, and PepsiCo.

Lauren Tredgett, category buying manager for soft drinks and chilled juice at Tesco, described the opportunity for brands to help address the hydration gap, with 80% of the nation not drinking enough water.

Meanwhile, category headwinds were acknowledged, with Innocent Drinks’ head of UK and Ireland, Nicki Garland, citing extreme weather and citrus greening as a key challenge for the fruit juice category, as well as the previously mentioned legislation updates.

PepsiCo’s Alastair Gore, commercial director of GB&I beverages for PepsiCo, said that the growth of ‘healthier’ options is not detracting from core, taste-led propositions, but rather adding to the overall category’s success, working synbiotically alongside a “healthy base of core brands” in taste and indulgence.

Sustainability

Key topics explored during the event’s Sustainability Summit centred around the scale of effort required to shift the industry toward a circular economy – one of the sector’s current most pressing challenges.

Simon James, director of circular economy directorate in the UK government Department for Environment, Food & Rural Affairs (DEFRA), said that the Collection and Packaging Reforms alone are expected to stimulate £10 billion of new investment and create 25,000 jobs, showing the economic opportunity of a circular economy shift. He noted the huge success of second-hand marketplace app Vinted for other industries like fashion, drawing on this to highlight the potential success that circular economy principles can bring for the F&B sector.

Implementation of a successful DRS was a key topic, with Exchange for Change’s CEO, Russell Davies, drawing on comparison with other countries’ successes in reducing litter and improving recycling rates following the roll-out of their schemes. The UK’s will be the largest single scheme in operation globally, handling 25 billion cans and single-use plastic bottles, he emphasised.

During a session on balancing all interests in EPR, Jeremy Blake, CEO of EPR scheme administrator Pack UK, highlighted the potential impact of reduction – specifically, he noted that if the 20% of non-recyclable packaging entering local authorities waste management were removed from the market, this could boost the UK’s current packaging recycling rate from 64% to more than 80%.

Samantha Walker, DRS lead for Coca-Cola Europacific Partners Great Britain, and James Bull, head of packaging and food waste strategies for Tesco, emphasised the scale of the challenges for the industry during a panel session, with Bull acknowledging that transitioning toward re-use is a necessary but complex effort.

In an open poll, the audience were invited to vote on the most pressing sustainability policy action. Leading as the top priority was the delivery of a UK-wide DRS on time, followed by EPR fairness and cost, recycling value/investment, net zero strategy, and consistent collection.

DEFRA’s James stressed that the industry should “keep talking about the holistic picture,” with each of these sustainability action priorities aligning to work together, rather than being viewed as siloed issues.

Meanwhile, Veolia head of policy and stakeholder engagement Gavin Anderson, who stepped up to speak about the waste management company’s investment in closed loop recycling, shared his thoughts about the importance of fostering collaboration in the sector as stakeholders work to adapt to new policies.

Functionality

Among the biggest talking points of the day, functionality claimed its place as one of the top trends shaping today’s modern soft drinks – this was reflected in the shortlisted entrants and winners of FoodBev Awards’ UK Soft Drinks Awards for 2026, many of whom embraced product positioning centred around wellbeing and aligning with the latest health trends.

Recent NielsenIQ (NIQ) data highlights a boom in functional drink offerings, with categories such as coconut water, kefir and kombucha firmly established and delivering double-digit growth – meanwhile, functional health shots are now worth £100 million in value sales, delivering a 47% compound annual growth rate over the past three years.

A session on investment into functional drinks brands, delivered by JamJar Investments’ principal Sophie Luck, offered valuable insights into what successful companies are doing right. The company is on the lookout for innovative formats in the health and wellbeing space, with Luck pointing out that brands who are particularly aligned with (or not impacted negatively by) the rise of GLP-1 medications for weight management are of particular interest currently – such as protein and fibre drinks.

She shared what brands should be able to offer to secure backing – such as a clear point of view and visual identity; a product that would generate buzz and attract repeat purchase; and a credible, capital-efficient route to a meaningful exit.

Olivia Ferdi, co-founder and CEO of functional beverage brand Trip, stepped up to discuss how the brand – which offers a portfolio spanning CBD and lion’s mane beverages to sleep-focused powdered offerings – is aiming to help consumers ‘find calm amid the everyday chaos’. She spoke about the importance of being able to address different use cases – for example, ‘daily calm’ for everyday routines, ‘social calm’ for social events, and ‘evening unwind calm’ for moments of rest.

Elsewhere, Huib van Bockel, founder and CEO of clean energy drink brand Tenzing, discussed the rise of ‘good energy’ – energy drinks positioning themselves as better-for-you, natural alternatives in a market traditionally dominated by offerings that are high in sugar and synthetic additives. NIQ data shows that Tenzing is currently the UK’s third leading energy drink brand in value ROS, behind category giants Red Bull and Monster.

Van Bockel pointed to data showing that 61% of those who don’t consume energy drinks cite ‘unnatural ingredients’ as their primary reason for avoidance, while 40% of women aged 18-44 find traditional energy drink flavours ‘too artificial’ or ‘cloying’. During a panel session, he spoke about consumer confusion surrounding functional ingredients, pointing to overcomplication within the category and the importance of clarity in messaging.

An audience poll saw hydration come out on top as the biggest UK soft drinks value growth opportunity over the next three years.

Daniel Cray, co-founder and CEO of effervescent hydration tablet brand Phizz, addressed the impact of dehydration on wellbeing during a session where he spoke about the opportunity of electrolyte beverages in meeting well-understood, everyday consumer needs. He highlighted that currently on Amazon, more people are searching for electrolytes than for protein, despite the current protein boom. The company is entering the chilled RTD beverage space this summer, its first foray out of the effervescent tablet format.

Gut health closely followed hydration in the poll, with several major players stepping up to speak about the benefits and value opportunity brought by gut-friendly beverages.

Freya Twigden, founder of kombucha and water kefir brand Fix8, described how water kefir can provide a lighter approach to gut health beverages than typical, dairy-based probiotic drinks. She spoke about expanding usage occasions in breakfast and beyond as pure juice declines in the market due to sugar levels, adding that GLP-1 users and Gen Z consumers are creating new market opportunities for gut health brands.

Also tapping into the gut health opportunity, decaf functional coffee brand Nolo’s co-founder Binky Felstead, and chief marketing officer Martin Franklin, took to the stage to explain how the brand saw a gap in the market for high-quality, decaffeinated coffee options that do not compromise on taste, while providing extra value through added functionality. The brand’s cold brew range contains 6.5g of added fibre, with Franklin describing it as the UK market’s “first prebiotic coffee”.

Positioning for success

Tim Warrilow, co-founder and CEO of Fever-Tree, addressed the opportunity for premium mixers to expand beyond their current market positioning and attract consumers as a soft drink in their own right – 880 million fewer alcoholic drinks were consumed in the UK last year, and 50% of consumers are actively moderating their alcohol consumption, underscoring a shift in consumer drinking behaviours and more interest in ‘low and no’ options.

“In our own sales there’s an increasing blurring of lines between people drinking our products mixed or soft – over a third of people are drinking our products soft, and that’s the fastest growing part of the business,” he enthused.

He said that Fever-Tree sees evening socialising as the biggest occasion opportunity for premium soft drinks, noting that the adult occasion is still somewhat underserved, with consumers seeking something that is “crafted, with fantastic ingredients, developed for adults and not for children”.

CapriSun managing director, Matt Done, also addressed expanding to address additional consumer groups and occasions.

“Consistency builds brands, but change keeps them relevant,” he stated, describing how CapriSun – a brand that built itself around children’s consumption occasions such as lunch boxes and kids’ parties – is moving with market trends to target new territories.

In particular, the brand is focusing on the opportunity offered by ‘hydration plus’ – though not yet rolled out in the UK, CapriSun has launched electrolyte-boosted hydration beverages in the US and across several European countries.

Water as a soft drink was another focus area as Alex Wright, co-founder and CEO of Dash, explained how the brand aims to “challenge the soft drinks status quo” and address the hydration opportunity while providing additional value in eco-friendliness (the brand uses surplus ‘wonky’ fruit and vegetables to reduce food waste), flavour innovation and health (as a sugar-free, natural brand).

Health and wellness associations are also driving the rise of matcha – the Japanese green tea powder is currently booming in the UK as Western consumers increasingly associate the trending drink with wellbeing and aesthetics.

Shani Higgs, head of sales for matcha brand PerfectTed, explained how the appeal of iced matcha drinks – which make up 90% of the matcha drinks sold nationwide – is extending beyond the core consumer profile for matcha consumption in the UK (Gen Z women, described by Higgs as ‘matcha girlies’) and attracting new groups across age groups and genders.

“When the industry starts noticing that you’re converting the customer who swore they would never drink that kind of drink, that’s when you know you’ve crossed into the mainstream,” she said, highlighting the company’s own data – it shows that while PerfectTed’s core customer is 16-34-year-olds, the 35-44 age group is the fastest-growing and presents what the brand sees as the biggest opportunity.

Additionally, Kit Newell, co-founder of honey-based beverage brand Hive Mind, explored how the brand is also tapping into health trends with the creation of its Honeyade product line.

Founded by Kit and his brother Matt, two beekeepers based in Monmouthshire, Wales, Hive Mind began as a traditional meadery and has since broadened beyond alcohol to offer a line of soft drinks sweetened naturally with honey, rather than artificial sweeteners or refined sugars.

“Walk through any supermarket and you’ll find hundreds of soft drinks claiming to be natural, but hardly any are sweetened with anything recognisable,” Newell pointed out. “Consumers are trapped in a choice between sugar and artificial sweeteners…honey is the world’s only naturally occurring sugar that needs no additional processing.”

Closing with celebration

The day culminated in the announcement of the UK Soft Drinks Awards 2026 winners in a special ceremony, showcasing the high quality of submissions received this year across categories such as flavourful carbonates, gut-friendly drinks with live cultures, premium alcohol alternatives and more. You can read the full list of winners here.

From thought-provoking discussions to meaningful networking sessions, the UK Soft Drinks Conference 2026 offered a vital opportunity for major players across the industry to come together and celebrate the resilience and adaptability of this dynamic category.

We look forward to returning to London for the 27^th annual event next spring – see you there!