by Freedonia Focus Reports Team
May 16, 2024
Price growth will underlie value increases
Cleveland, OH, May 16, 2024 — US beverage demand is forecast to rise 1.0% per year in nominal terms through 2028, according to Beverages: United States, a report recently released by Freedonia Focus Reports. Suppliers will benefit from population growth and increases in disposable personal income, which will drive purchases of higher-end and niche beverages and support growth in value terms. Faster gains will be limited by ongoing consumer concerns regarding the negative health effects of alcohol and sweetened beverages. Demand is expected to contract in 2024 (1.9%), as prices soften somewhat, leading to losses in value terms, offsetting gains in real (inflation-adjusted) terms.
Demand for alcoholic beverages is expected to rise 2.9% annually to 2028, largely reflecting price gains. Suppliers will also benefit from growth in disposable personal incomes, which will continue to fuel the popularity of novel beverages such as craft beer, hard seltzers, and ready-to-drink (RTD) cocktails, which will support growth in value terms. However, faster gains in volume terms will be limited by increasing caution regarding alcohol use as consumers become more health conscious, a trend that was amplified by the COVID-19 pandemic. In particular, many young adults are cautious about alcohol use and consume a wide variety of beverages (e.g., energy drinks, sports drinks) in part due to the expanding nature of nonalcoholic beverage options they have experienced for a large part of their lives. As a result, there is a growing market for non-alcoholic versions of alcoholic beverages, including non-alcoholic beer, wine, spirits, and cocktails, sometimes referred to as "mocktails".
These and other key insights are featured in Beverages: United States. This report forecasts annually to 2028 US beverages demand and shipments in nominal US dollars at the manufacturer level. Total demand is segmented by product in terms of:
To illustrate historical trends, total demand, total shipments, the various segments, and trade are provided in annual series from 2013 to 2023.
The scope of this report encompasses beverages consumed from bottles, single-serving containers, and various types of dispensing systems utilizing bulk packages (e.g., fountain drinks, beer taps, and water coolers). Homemade beverages, such as home-brewed beer and wine, are excluded, as are beverage products not sold ready-to-drink, such as coffee beans and grounds, dry teas, and powdered drink mixes. Non-packaged potable liquids such as tap and well water are also excluded. Re-exports of beverages are excluded from demand and trade figures.
This report includes the results of a proprietary national online consumer survey of US adults (age 18+). This Freedonia Focus Reports National Online Consumer Survey has a sample size of approximately 1,500, screened for response quality, and representative of the US population on the demographic measures of age, gender, geographic region, race/ethnicity, household income, and the presence/absence of children in the household.
More information about the report is available at:
https://www.freedoniagroup.com/freedonia-focus/beverages-united-states-ff10023.htmAbout Freedonia Focus Reports
Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Food & Beverage reports can be purchased at Freedonia Focus Reports or MarketResearch.com.
Analysis is intended to guide the busy reader through pertinent topics in rapid succession, including:
total historical market size and industry output
segmentation by products and markets
identification of market drivers, constraints, and key indicators
segment-by-segment outlook in five-year forecasts
a survey of the supply base
suggested resources for further study
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