US Beverage Market Outlook 2023: Inflation, Home Delivery, Health Halos & Other Trends


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US Beverage Market Outlook 2023: Inflation, Home Delivery, Health Halos & Other Trends


Most major beverage categories are mature and rely primarily on population growth, leaving marketers with the challenge of bringing something new to the table. The COVID-19 pandemic put a hold on many product innovations, but as the world returns to normal, there is an increasing opportunity for companies to invest in new product innovations, such as ingredient upgrades, sustainable packaging, wellness products, plant-based products, and limited-edition flavors. Appeals to changing consumer preferences, including the wellness, functional, and plant-based areas, will be successful if alongside great taste and a value price.

More consumers are trying to limit or avoid sugars in their diets. Marketers are satisfying consumers’ desires with “zero sugar” sodas and other beverages, often as standard offerings launched alongside flagship versions. Many zero sugar products use artificial sweeteners. However, others include natural options like erythritol, stevia leaf extract, and monk fruit or even produce sweet proteins or natural enzymes via fermentation.

Consumers continue to demand exciting new experiences in taste, texture, formats, and branding despite the numerous beverage brands and varieties on the market. Delivering elevated flavor and other experiences gives marketers opportunities to differentiate and enhance the appeal of their products and expand into new product segments, other consumption occasions, and different demographic groups.

A growing number of consumers – particularly younger ones – make food and beverage choices at least partly on ESG (environmental, social, and governance) issues, primarily protecting the environment, animals, and humans. Sustainability issues, most notably those regarding water and land usage and packaging, affect virtually all beverage categories.

Historical and projected retail sales are presented in additional detail for beverages within these primary categories -- carbonated soft drinks, energy and sports drinks, bottled water (plain and enhanced), dairy beverages, dairy alternatives, juices, coffee, and tea. Additionally, the report has dozens of tables showcasing numerical survey data on consumer demographics and psychographics and numerous figures and images highlighting product and marketing trend examples. This report also goes in-depth on COVID-19 trends affecting the beverage market.

With a focus on growth opportunities and “what’s next” – along with bringing decades of food and beverage market perspective and analysis to the table – Beverage Market Outlook 2023: Inflation, Home Delivery, Health Halos, & Other Trends is packed with actionable insights about consumer trends, behavior, and motivations. This report delivers predictions and recommendations designed to guide retailers, service providers, wholesalers, beverage suppliers and bottlers, packaging firms, and investors in making business decisions about the beverage market.

Scope

Combining Packaged Facts’ extensive monitoring of the food and beverage market with proprietary surveys, U.S. Beverage Market Outlook 2023 is the go-to source for a complete understanding of the U.S. packaged beverage market. This broad-based report evaluates current trends and future directions for marketing and retailing, along with consumer patterns across the food market.

U.S. Beverage Market Outlook 2023 focuses on the market for selected packaged beverage products sold to consumers in the United States through retail channels. All retail distribution channels are covered, including supermarkets and grocery stores, mass merchandisers and supercenters, warehouse clubs, specialty food stores, health/natural food stores, convenience stores, drugstores, dollar stores, vending machines, and direct sales channels such as online and mail order. Market size data are provided at the retail sales level for 2017-2022 and projections are provided for 2023-2027.

This report also examines marketing trends and product innovations as well as surveys retail channel trends and provides data-driven discussions of consumer trends and motivations.

Report Methodology

The information contained in U.S. Beverage Market Outlook 2022 was developed from primary and secondary research sources.

Primary research included consultation with industry sources and visits to retail stores. Primary research also includes national online consumer polls of U.S. adult consumers (age 18+) conducted on an ongoing basis by Packaged Facts to analyze purchasing patterns and attitudes with regard to food and beverage preferences. Supplementing Packaged Facts’ exclusive survey is an extensive analysis of MRI-Simmons’ National Consumer Study, which is based on approximately 25,000 adult respondents surveyed annually.

Secondary research entailed gathering data from relevant trade, business, and government sources, as well as company promotional literature and annual reports. Estimates of market size and company performance are based on various sources, including reported revenues of product manufacturers and retailers, relevant publications, and other market research sources. The analysis in this report also draws, as a background source, on retail sales tracking data as available from Circana (formerly known as IRI) and Nielsen (for mass-market channels), and SPINS (for the natural channel).

This report contains dozens of numerical tables and charts, as well as numerous product photographs. Our estimates of market size and company performance are based on various sources including reported revenues of product manufacturers and retailers, relevant publications, and other market research sources. The analysis in this report also draws, as a background source, on retail sales tracking data from mass market and specialty channels.


  • Executive Summary
    • Beverage Retail Sales Forecast
    • Beverage Trends
      • Private Label Surges Due to Inflation
      • Alternatives with Real Dairy Attributes
      • Healthier-For-You
      • Reduced or Zero Sugar
      • Excite The Senses
      • Target Gamers
      • Hard Beverages
      • Embrace ESG
    • Scope
    • Methodology
  • COVID-19 Effects on Consumers
    • Highlights
    • Concerns About COVID-19 Exposure Remain
      • Table Coronavirus Health Concerns: "I am concerned about the…", 2020-2022 (% of respondents)
    • Impact on Food
      • Concerns About High Prices and Shortages
        • Table Concerns about Rising Prices by Product Category, 2021, 2022 (percent of consumers)
        • Table Consumer Price Index for Food at Home Categories, February 2023, May 2023 (year-over-year percent change)
        • Table Concerns about Rising Food Prices, 2021-2022 (percent of consumers)
      • Concerns About Shortages
        • Table Concerns about Shortages by Selected Product Category, 2021-2022 (percent of consumers)
        • Table Consumer Concerns about Food Shortages, 2021-2022 (percent of consumers)
      • Consumers Still Stockpiling
        • Table "If a food item is on sale, I buy multiple units to stock up," 2012-2022 (percent of US adults who agree completely)
        • Table Separate Freezer Owned or Purchased in Last 12 Months, 2012-2022 (percent of US households)
    • Drinking Patterns: Pandemic Boosts Bottled Water Consumption Most
    • Home Cooking Remains Relatively High
      • Table Home Cooking Behaviors, Agree Completely, 2012-2022 (percent of US adults)
    • Boosted Online Grocery Shopping Activity Continuing Through 2022
      • Activity Spiked in 2020 during the Early Part of the Pandemic
        • Table Coronavirus Food Purchase Habits: "Because of the coronavirus, I am…", 2020-2021 (percent of consumers)
      • Many Have Continued Ordering More Groceries Online in 2021 and 2022
    • Effects on Work Have Continued in 2021 and 2022
      • And Continue in 2023
        • Table "Are You Set Up to Do Your Usual Paid Work From Home - Whether Ordinarily, Part-Time, or When Necessary?" by Gender, Age, Income, &Children at Home, 2021-2023 (% of respondents who work full- or part-time)
      • Changes in Work From Home Frequency
        • Table Changes in Work From Home Frequency, 2020 & 2022 (% of employed respondents who are set up to work from home & said yes)
  • Overview
    • Beverage Retail Sales Forecast
      • Inflation Easing But Has Driven Dollar Sales
      • Future Outperformers: Dairy Alternatives, Energy & Sports Drinks, Bottled Water
        • Table US Retail Dollar Sales by Top Beverage Categories, 2017, 2022-2027P (million dollars and percent)
      • Post-Pandemic: Dollar Sales Surge, Demand Suffers
        • Table US Retail Dollar Sales by Top Beverage Categories, 2019, 2020, 2021, 2022 (million dollars and percent)
        • Table US Retail Dollar and Volume Sales by Top Beverage Categories, 2019, 2020, 2021, 2022 (percent change)
      • Food and Beverage Sales Shift Back to Foodservice But Food Retail Still High
    • Distribution Trends
      • E-Commerce and Grocery Delivery
        • Table Purchased Groceries Over Internet in Last 30 days, 2012-2022 (percent of US adults)
      • Faster Home Delivery
      • Autonomous Delivery
      • Drone Delivery
      • In-Home Delivery
      • On-Demand Delivery
      • Instacart Helps Retailers Drive Sales, Save Customers Money
    • Snacking
      • Frequency of Snacking and Reasons for Snacking
      • Snacking Highest in the Afternoon
      • Fruit Most Preferred in Morning, Savory/Salty and Sweet Treats at Night
    • Convenience Stores Maintain Post-Pandemic Recovery
  • Beverage Trends
    • Alternatives With Real Dairy Attributes
      • Dairy-Free, Plant-Based
        • Table Prevalence of Plant-Forward Eating Habits/Diet Control, 2019 - 2022 (percent of consumers)
      • Animal-Free Dairy
    • Healthier-For-You
      • Reduced or Zero Sugar
        • Table Preferences for Sweetener Types, 2022 (percent of consumers)
    • Healthier-For-Kids
    • Excite The Senses
    • Target Gamers
    • CBD-Infused
    • Hard Beverages
    • Partnerships Advantageous
    • Private Label Surges Due to Inflation
      • Table Selected Private Label Department Dollar Sales Growth, 2021-2022 (percent change)
      • Table Consumption Rates in last 6 months for Selected Store Brand Beverages, 2012-2022 (percent of US households)
    • Embrace ESG
      • Food Waste
      • Clean Water and Conservation
      • Social Causes
      • Sustainability
        • Table Items Recycled or Reused in Last 30 Days, 2012-2022 (percent of adults)
        • Table Consumption Rates for Carbonated Beverages by Packaging Form, 2012-2022 (percent of adults that drink carbonated beverages)
  • Bottled and Enhanced Waters
    • Sales Outlook
      • Market to Exceed $37 Billion in 2027
        • Table Bottled and Enhanced Water Retail Sales, 2017-2027 (million dollars, million gallons, and percent change)
      • Segment Sales
        • Table Bottled and Enhanced Water Retail Sales: By Segment, 2016-2027 (million dollars and percent change)
    • Consumer Insights
      • Pandemic Boosts Bottled Water Consumption Most
      • Consumer Preferences - Still Water Unflavored; Sparkling Water/Seltzer Flavored
        • Table Consumption Rates for Bottled Water, 2021-2022 (percent of households)
      • Still Water Consumed Far More than Sparkling or Seltzer
        • Table Drinks/Glasses of Bottled Water in Last 7 Days 2021-2022 (percent of households that drink bottled water)
      • Water Filter Ownership Remains High After 2020 Spike
        • Table Water Filter Ownership, 2012-2022 (percent of households)
      • Hard Seltzer Slows but Gains Continue
        • Table Consumption Rates for Flavored Alcoholic Beverages/Coolers 2012-2022 (percent of adults)
    • Key Opportunities
      • Healthier-For-You
      • Excite the Senses
      • Embrace ESG
      • CBD-Infused
      • Hard Seltzers/Waters
  • Carbonated Soft Drinks
    • Sales Outlook
      • Market Nearly $62 Billion in 2027
        • Table Carbonated Beverage Retail Sales, 2017-2027 (million dollars, million 1.5 gallon equivalents, and percent change)
      • Category Sales
        • Table Carbonated Beverage Retail Sales by Segment, 2016-2027 (million dollars and percent change)
    • Consumer Insights
      • Diet Soda Consumption Gets Pandemic Boost
        • Table Consumption Rates for Carbonated Beverages, 2012-2022 (percent of adults)
      • Plastic Bottles Still Very Popular Despite Environmental Concerns
        • Table Consumption Rates for Carbonated Beverages by Packaging Form, 2012-2022 (percent of adults that drink carbonated beverages)
      • Diet Cola Drinkers Consumer More
        • Table Glasses of Selected Carbonated Beverages Drunk in Last 7 Days, 2012-2022 (percent of adults that drinks regular and diet colas)
      • Selected Differences Among Coca-Cola, Coke Zero Sugar, and Diet Coke Drinkers
        • Table Demographic Characteristics of Coke Classic, Coke Zero Sugar, and Diet Coke Drinkers, 2022 (Index)
    • Key Opportunities
      • Excite the Senses
      • Healthier-For-You
      • Embrace ESG
      • Hard Soda
      • CBD-Infused
  • Coffee and Ready-to-Drink Coffee
    • Sales Outlook
      • Market to Exceed $22 Billion in 2027
        • Table Coffee Retail Sales, 2017-2027 (million dollars, million ounces, and percent change)
      • Category/Segment Sales
        • Table Coffee Retail Sales: By Segment, 2016-2027 (million dollars and percent change)
    • Consumer Insights
      • Ground Coffee Consumed Most; RTD Coffee Gaining
        • Table Consumption Rates for Coffee Segments, 2012-2022 (percent of households)
      • Pandemic Boosts Bottled Water Consumption Most
      • Single-Serve Pods Continue to Gain; Loose Grinds Preferred Most
        • Table Forms of Ground Coffee Used Most Often, 2012-2022 (percent of households that drink ground coffee)
      • Unflavored Ground and Whole Bean Coffee Overwhelmingly Preferred
        • Table Flavor of Ground Coffee Drunk Most Often, 2012-2022 (percent of households that drink ground coffee)
      • Coffee Consumption Keeps Rising
        • Table Cups of Ground Coffee (Regular or Decaf) Drunk Per Average Day, 2012-2022 (percent of households that drink ground coffee)
      • Coffee Appliance Sales Boosted by At-Home Consumption
        • Table Coffee Appliances Bought in Last 12 Months, 2012-2022 (percent of households)
    • Key Opportunities
      • Healthier-For-You
      • Excite the Senses
      • Coffee Shop Experience At Home
      • Single-Serve Options Beyond Pods
      • Hard Coffee
      • Embrace ESG
  • Dairy and Dairy Alternative Beverages
    • Sales Outlook
      • Total Market to Exceed $33 Billion in 2027
        • Table Dairy and Dairy Alternative Beverages Retail Sales, 2017-2027 (million dollars and percent change)
      • Volume Sales
        • Table Dairy and Dairy Alternative Beverages Market Retail Volume Sales, 2017-2027 (million pints)
      • Category and Segment Sales
        • Table Dairy and Dairy Alternative Beverages Retail Sales: By Category and Segment, 2016-2027 (million dollars and percent change)
    • Consumer Insights
      • Pandemic Boosts Bottled Water Consumption Most
      • Dominant Dairy Milk Consumption Decreasing; Milk Alternatives Increasing
        • Table Consumption Rates for Dairy and Dairy Alternative Beverages, 2012-2022 (percent of households)
      • 2% and Whole Preferred Most by Milk Drinkers
        • Table Kind of Milk Consumed in Last 6 Months, 2012-2022 (percent of households that drink fresh milk)
      • Organic Milk Consumption at Record High; Remains a Niche
        • Table Type of Milk Consumed in Last 6 Months, 2012-2022 (percent of households that drink milk)
      • Plastic Jugs Still Most Popular Milk Package by Far
        • Table Milk Package Used in Last 6 Months, 2012-2022 (percent of households that drink milk)
      • Oat Milk Gains But Almond Milk Still Dominant
        • Table Type of Non-Dairy Milk Alternatives Consumed in Last 6 Months, 2016-2022 (percent of households that drink non-dairy milk alternatives)
    • Key Opportunities
      • Alternatives with Real Dairy Attributes
      • Animal-Free Dairy
      • Healthier-For-You
      • Healthier-For-Kids
      • Excite the Senses
      • Mindful Indulgence
      • Embrace ESG
  • Energy and Sports Drinks
    • Sales Outlook
      • Market to Approach $46 Billion by 2027
        • Table Energy and Sports Drinks Retail Sales, 2017-2027 (million dollars, million ounces, and percent change)
      • Category and Segment Sales
        • Table Energy and Sports Drinks Retail Sales: By Segment, 2016-2027 (million dollars and percent change)
    • Consumer Insights
      • Low Penetration for Energy Drinks Especially
        • Table Consumption Rates for Energy Drinks/Shots and Sports Drinks, 2012-2022 (percent of adults)
      • Pandemic Boosts Bottled Water Consumption Most
      • Drinks Dominate, Shots Remain Smaller Niche
        • Table Forms of Energy Drinks/Shots Drunk, 2012-2022 (percent of adults that drinks energy drinks/shots)
      • Similar Consumption Patterns for Energy and Sports Drinks
        • Table Number of Energy Drinks/Shots Drunk in Last 30 Days, 2012-2022 (percent of adults that drinks energy drinks/shots)
        • Table Number of Sports Drinks Drunk in Last 30 Days, 2012-2022 (percent of adults that drinks sports drinks)
    • Key Opportunities
      • Healthier-For-You
      • Rapid Hydration
      • Excite the Senses
      • Mindful Indulgence
      • Embrace ESG
  • Juices
    • Sales Outlook
      • Market Declining to About $21 Billion in 2027
        • Table Juice Retail Sales, 2017-2027 (million dollars, million ounces, and percent change)
      • Category Sales
        • Table Juice Market Retail Dollar Sales by Category, 2016-2027 (million dollars and percent change)
    • Consumer Insights
      • Traditional Juice Consumption Continues Declines
        • Table Consumption Rates for Juices by Product, 2012-2022 (percent of US households)
      • Pandemic Boosts Bottled Water Consumption Most
      • OJ Plastic Jugs and Glass Bottles Gain Over Cartons
        • Table Package Type of Orange Juice Drunk in Last 6 Months, 2012-2022 (percent of households that drink orange juice)
      • Most Households Drink Only 1-2 Glasses of OJ Daily
        • Table Glasses of Orange Juice Drunk by Household on Average Day, 2012-2022 (percent of households that drink orange juice)
      • Cranberry Makes Gains; Apple Remains Favorite
        • Table Flavors of Other Fruit Juices/Drinks Drunk Most Often, 2012-2022 (percent of households that drink other fruit juices/drinks)
      • Most Households Drink Only 1-2 Glasses of Other Fruit Juice/Drinks Daily
        • Table Glasses of Other Fruit Juices/Drinks Drunk by Household on Average Day, 2012-2022 (percent of US households that drink other fruit juices/drinks)
    • Key Opportunities
      • Healthier-For-You
      • Healthier-For-Kids
      • Hard Juices
      • Excite the Senses
      • Leverage Snacking Trend
      • Embrace ESG
      • CBD-Infused
  • Tea and Ready-to-Drink Tea
    • Sales Outlook
      • Market to Approach $11 Billion in 2027
        • Table Tea and RTD Tea Retail Sales, 2017-2027 (million dollars, million ounces, and percent change)
      • Category and Segment Sales
        • Table Tea and RTD Tea Retail Sales by Segment, 2016-2027 (million dollars and percent change)
    • Consumer Insights
      • Despite Declines Tea Bags Still Most Popular
        • Table Consumption Rates for Tea, 2012-2022 (percent of households)
      • Pandemic Boosts Bottled Water Consumption Most
      • Caffeinated Overwhelmingly Preferred by Tea Drinkers
        • Table Type of Tea Drunk in Last 6 Months, 2012-2022 (percent of households that drink tea bags/packages)
      • Regular Size Bags Overwhelmingly Preferred Format
        • Table Form of Tea Drunk in Last 6 Months, 2012-2022 (percent of households that drink tea bags/packages)
      • Herbal Tea Consumption Increases Over Last Three Years
        • Table Flavor of Tea Drunk in Last 6 Months, 2012-2022 (percent of households that drink tea bags/packages)
      • Most Hot Tea Drinkers Drink 1-2 Cups Daily
        • Table Cups of Tea Drunk by Household on Average Day, 2012-2022 (percent of households that drink tea bags/packages)
      • Flavored RTD Iced Tea Overwhelmingly Preferred
        • Table Type of RTD Iced Tea/Kombucha Drunk Most Often, 2012-2022 (percent of adults that drink RTD iced tea/kombucha)
      • Most Consume 1-2 RTD Teas Weekly; Relatively High Percentage Drink 9+
        • Table Drinks/Glasses of RTD Tea/Kombucha Drunk by Household in Last 7 Days, 2012-2022 (percent of households that drink RTD tea/kombucha)
    • Key Opportunities
      • Healthier-For-You
      • Excite the Senses
      • CBD-Infused
      • Hard Teas
      • Embrace ESG

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