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U.S. Beverage Market Outlook 2022: Inflation, Supply Chains, & Trends in Beverage Consumption

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    Report

  • 344 Pages
  • July 2022
  • Region: United States
  • Packaged Facts
  • ID: 4830140

Most major beverage categories are mature and rely primarily on population growth, leaving marketers with the challenge of bringing something new to the table. Opportunities abound for companies that invest in new product launches, ingredient changes, and different marketing tactics to appeal to changing consumer preferences, including the wellness and plant-based areas but also flavor trends.

The COVID-19 pandemic led to sharply increased demand for beverages in the retail sector as consumption shifted from the foodservice industry to the home. Even as foodservice outlets reopened and vaccination rates rose, COVID-19 variants remained a concern along with rising food and gas prices due to inflationary pressure. Therefore, many consumers are continuing to spend more time at home compared to their pre-pandemic habits and more beverages were consumed at home. As a result, while demand on the retail side has continued to slow from the gains seen from 2019-2020, sales have remained elevated from pre-pandemic levels.

The pandemic cast a spotlight on - and in many cases accentuated - beverage industry trends that had been developing for several years. Consumer behavior was changed significantly, leading to unprecedented demand for products to meet basic needs, as well as items to satisfy changing lifestyles. Highlights include dairy alternatives, better tasting better-for-you beverages, reduced sugar/zero sugar content, hard beverage options, and sustainable packaging.

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 2022: Inflation, Supply Chains, & Trends in Beverage Consumption 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 the publisher's extensive monitoring of the food and beverage market with proprietary surveys, U.S. Beverage Market Outlook 2022 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 2022 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 2016-2021 and projections are provided for 2021-2026.

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 the publisher to analyze purchasing patterns and attitudes with regard to food and beverage preferences. Supplementing the publisher's 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 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.

Table of Contents

Chapter 1: Executive Summary
  • Beverage Retail Sales Forecast
  • Covid-19 Effects on Retail Beverage Sales
  • Concerns About High Prices
  • Consumers Still Stockpiling
  • Beverage Trends
  • Replicate Real Dairy Experience With Alternatives
  • Better Better-For-You
  • Reduced or Zero Sugar
  • Hard Beverages
  • Sustainable Packaging
  • Figure 1.1 Beverage Market Trends
  • Scope
  • Methodology
Chapter 2: Covid-19 Effects on Consumers
  • Highlights
  • Considering the Pandemic a Health Threat Personally or to Family/Friends
  • Table 2.1 Coronavirus Health Concerns: “I Am Concerned About The…”, 2020-2022 (% of Respondents)
  • Impact on Food and Beverages
  • Concerns About High Prices and Shortages
  • Table 2.2 Coronavirus Concerns About Rising Prices by Product Category, 2021 (Percent of Consumers)
  • Table 2.3 Consumer Concerns About Rising Food Prices, 2021-2022 (Percent of Consumers)
  • Concerns About Shortages
  • Table 2.4 Coronavirus Concerns About Shortages by Product Category, 2021 (Percent of Consumers)
  • Table 2.5 Consumer Concerns About Food Shortages, 2021-2022 (Percent of Consumers)
  • Consumers Still Stockpiling
  • Table 2.6 “If a Food Item is on Sale, I Buy Multiple Units to Stock Up.” Agree Completely, 2011-2021 (Percent of U.S. Adults)
  • Table 2.7 Separate Freezer Purchase in Last 12 Months, 2011-2021 (Percent of U.S. Households)
  • Drinking Patterns: Pandemic Boosts Bottled Water Consumption Most
  • Figure 2.1 Covid-19 Pandemic Changes to Beverage Drinking Habits During the Work Day
  • Figure 2.2 Buying More Because of the Pandemic, 2021 (Percent of Adults)
  • Home Cooking Remains Relatively High
  • Table 2.8 Home Cooking Behaviors, Agree Completely, 2011-2021 (Percent of U.S. Adults)
  • Food Shopping Habits & Patterns
  • Increasing Use of Convenient Food and Beverage Ordering Methods
  • Table 2.9 Coronavirus Food Purchase Habits: “Because of the Coronavirus, I Am…”, 2020-2021 (Percent of Consumers)
  • Figure 2.3 Consumers Are Still Favoring Convenience for Grocery Shopping, 2021-2022 (Percent of Consumers)
  • In-Store Shopping Patterns
  • Figure 2.4 Changes to In-Store Shopping Activity Continue in the Vaccine Era, 2021 (Percent of Consumers)
  • Effects on Work Continuing in 2021
  • Set Up to Work from Home
  • Table 2.10 "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 (% of Respondents Who Work Full- or Part-Time)
  • Changes in Work from Home Habits
  • Figure 2.5 Coronavirus Changes to Work Patterns and Returning to a Pre-Covid Normal, 2021-2022 (Percent of Consumers)
Chapter 3: Overview
  • Beverage Retail Sales Forecast
  • Total Beverage Sales Will Continue to Rise in 2022
  • Food and Beverage Sales Shifted Back to Food Retail During the Pandemic
  • Carbonated Soft Drinks Continued With Strong Growth in 2021
  • Table 3.1 U.S. Retail Dollar Sales of Selected Food Categories, 2019, 2020, 2021 (Million Dollars and Percent)
  • Table 3.3 U.S. Retail Dollar Sales by Top Beverage Categories, 2019-2021 (Million Dollars and Percent)
  • Best Prospects for Dairy Alternatives, Energy & Sports Drinks, & Bottled Water
  • Table 3.2 Retail Sales by Top Beverage Categories, 2016, 2021-2026P (Million Dollars and Percent)
  • Distribution Trends
  • E-Commerce and Grocery Delivery
  • Table 3.4 Purchased Groceries Over Internet in Last 30 Days, 2011-2021 (Percent of U.S. Adults)
  • Easier Store Pickup
  • Faster Home Delivery
  • In-Home Delivery
  • Instacart Adds Features to Fight Inflation
  • Snacking
  • Frequency of Snacking and Reasons for Snacking
  • Figure 3.1 Frequency of and Reasons for Snacking, 2021 (Percent of Consumers)
  • Younger Consumers Are More Likely to Snack Throughout the Day
  • Figure 3.2 When Snacks and Meals Are Eaten by Age Bracket, 2021 (Percent of Consumers)
  • Convenience Stores Recover from Pandemic
Chapter 4: Beverage Trends
  • Replicate Real Dairy Experience With Alternatives
  • Dairy-Free, Plant-Based
  • Figure 4.1 Diets/Eating Philosophies Primarily Followed, 2021 (Percent of Consumers)
  • Animal-Free Dairy
  • Better Better-For-You
  • Reduced or Zero Sugar
  • Heightened Experiences
  • Beverage +
  • CBD-Infused
  • Hard Beverages
  • Private Label: Lagged in 2021 But Remains Important
  • Table 4.1 Consumption Rates in Last 6 Months for Selected Store Brand Beverages, 2011-2021 (Percent of U.S. Households)
  • Address ESG Issues
  • Food Waste
  • Social Causes
  • Sustainability
  • Packaging
  • Beverage Packaging Recyclability a Top Consumer Priority
  • Figure 4.2 Priority of Selected Beverage Packaging Characteristics, 2021 (Percent of Consumers)
  • Plastic Bottles Still Recycled Most
  • Table 4.2 Items Recycled or Reused in Last 30 Days, 2017-2021 (Percent of Adults)
  • Consumer Opinions on Packaging and Recycling
  • Figure 4.3 Consumer Thoughts on Recycling, 2021 (Percent of Consumers)
  • Despite Environmental Concerns Plastic Bottles Still Very Popular
  • Table 4.3 Consumption Rates for Carbonated Beverages by Packaging Form, 2011-2021 (Percent of Adults That Drink Carbonated Beverages)
  • Packaging and Recycling Initiatives
Chapter 5: Bottled and Enhanced Waters
  • Sales Outlook
  • Market to Reach $32 Billion in 2026
  • Table 5.1 Bottled and Enhanced Water Retail Sales, 2016-2026 (Million Dollars and Million Gallons)
  • Segment Sales
  • Figure 5.1 Bottled and Enhanced Water Retail Sales Dollar Share: by Category and Segment, 2020, 2025
  • Table 5.2 Bottled and Enhanced Water Retail Sales: by Segment, 2016-2026 (Million Dollars)
  • Consumer Insights
  • Pandemic Boosts Bottled Water Consumption Most
  • Figure 5.2 Covid-19 Pandemic Changes to Beverage Drinking Habits During the Work Day
  • Figure 5.3 Buying More Because of the Pandemic, 2021 (Percent of Adults)
  • Consumers Prefer Still Water Unflavored; Sparkling Water/Seltzer Flavored
  • Table 5.4 Consumption Rates for Bottled Water, 2021 (Percent of Households)
  • Still Water Consumed Far More Than Sparkling or Seltzer
  • Table 5.5 Drinks/Glasses of Bottled Water in Last 7 Days 2021 (Percent of Households That Drink Bottled Water)
  • Water Filter Ownership Spikes Again in 2021
  • Table 5.6 Water Filter Ownership, 2011-2021 (Percent of Households)
  • Hard Seltzer Gains Continue in 2021
  • Table 5.7 Consumption Rates for Flavored Alcoholic Beverages/Coolers 2011-2021 (Percent of Adults)
  • Key Opportunities
  • Better Better-For-You
  • Water +
  • Heightened Experiences
  • Address ESG Issues
  • CBD-Infused
  • Hard Seltzers
Chapter 6: Carbonated Soft Drinks
  • Sales Outlook
  • Market Nearly $52 Billion in 2026
  • Table 6.1 Carbonated Beverage Retail Sales, 2016-2026 (Million Dollars and Million 1.5 Gallon Equivalents)
  • Category Sales
  • Figure 6.1 Carbonated Beverage Retail Dollar Sales Share by Segment, 2019-26
  • Table 6.2 Carbonated Beverage Retail Sales by Segment, 2016-2026 (Million Dollars)
  • Consumer Insights
  • Pandemic Boosts Diet Soda Consumption
  • Table 6.3 Consumption Rates for Carbonated Beverages, 2011-2021 (Percent of Adults)
  • Pandemic Boosts Bottled Water Consumption Most
  • Figure 6.2 Covid-19 Pandemic Changes to Beverage Drinking Habits During the Work Day
  • Figure 6.3 Buying More Because of the Pandemic, 2021 (Percent of Adults)
  • Despite Environmental Concerns Plastic Bottles Still Very Popular
  • Table 6.4 Consumption Rates for Carbonated Beverages by Packaging Form, 2011-2021 (Percent of Adults That Drink Carbonated Beverages)
  • Diet Cola Drinkers Drink the Most
  • Table 6.5 Glasses of Selected Carbonated Beverages Drunk in Last 7 Days, 2011-2021 (Percent of Adults That Drinks Regular and Diet Colas)
  • Selected Differences Among Coca-Cola, Coke Zero Sugar, and Diet Coke Drinkers
  • Table 6.6 Demographic Characteristics of Coke Classic, Coke Zero Sugar, and Diet Coke Drinkers, 2021 (Index)
  • Key Opportunities
  • Heightened Experiences
  • Soda +
  • Better Better-For-You
  • Hard Soda
  • CBD-Infused
Chapter 7: Coffee and Ready-To-Drink Coffee
  • Sales Outlook
  • Market to Exceed $19 Billion in 2026
  • Table 7.1 Coffee Retail Sales, 2016-2026 (Million Dollars and Million Ounces)
  • Category/Segment Sales
  • Figure 7.1 Coffee Retail Dollar Shares by Category and Segment, 2021-2026
  • Table 7.2 Coffee Retail Sales: by Segment, 2016-2026 (Million Dollars)
  • Consumer Insights
  • Rtd Coffee Gaining; Ground Consumed Most by Far
  • Table 7.3 Consumption Rates for Coffee Segments, 2011-2021 (Percent of Households)
  • Pandemic Boosts Bottled Water Consumption Most
  • Figure 7.2 Covid-19 Pandemic Changes to Beverage Drinking Habits During the Work Day
  • Figure 7.3 Buying More Because of the Pandemic, 2021 (Percent of Adults)
  • Loose Grinds Preferred Most But Single-Serve Pods Continue to Gain
  • Table 7.4 Forms of Ground Coffee Used Most Often, 2011-2021 (Percent of Households That Drink Ground Coffee)
  • Consumers Overwhelmingly Prefer Unflavored Ground and Whole Bean Coffee
  • Table 7.5 Flavor of Ground Coffee Drunk Most Often, 2011-2021 (Percent of Households That Drink Ground Coffee)
  • Coffee Consumption Keeps Rising
  • Table 7.6 Cups of Ground Coffee (Regular or Decaf) Drunk Per Average Day, 2011-2021 (Percent of Households That Drink Ground Coffee)
  • Pandemic Boosts Sales of Coffee Appliances
  • Table 7.7 Coffee Appliances Bought in Last 12 Months, 2011-2021 (Percent of Households)
  • Key Opportunities
  • Better Better-For-You
  • Coffee +
  • Heightened Experiences
  • At Home Coffee Shop Experience
  • Single-Serve Options Beyond Pods
  • Hard Coffee
  • Address ESG Issues
Chapter 8: Dairy and Dairy Alternative Beverages
  • Sales Outlook
  • Total Market Nearly $27 Billion in 2026
  • Table 8.1 Dairy and Dairy Alternative Beverages Retail Sales, 2016-2026 (Million Dollars)
  • Volume Sales
  • Table 8.2 Dairy and Dairy Alternative Beverages Market Retail Volume Sales, 2016-2026 (Million Pints)
  • Category and Segment Sales
  • Figure 8.1 Dairy Vs. Dairy Alternative Beverages Retail Dollar Shares, 2021, 2026
  • Table 8.3 Dairy and Dairy Alternative Beverages Retail Sales: by Segment, 2016-2026 (Million Dollars)
  • Consumer Insights
  • Pandemic Boosts Bottled Water Consumption Most
  • Figure 8.2 Buying More Because of the Pandemic, 2021 (Percent of Adults)
  • Milk Alternative Consumption Increasing; Dairy Milk Decreasing
  • Table 8.4 Consumption Rates for Dairy and Dairy Alternative Beverages, 2011-2021 (Percent of Households)
  • Milk Drinkers Prefer 2% and Whole Milk
  • Table 8.5 Kind of Milk Consumed in Last 6 Months, 2011-2021 (Percent of Households That Drink Fresh Milk)
  • Consumption of Organic Milk Jumps in 2020, Steady in 2021
  • Table 8.6 Type of Milk Consumed in Last 6 Months, 2011-2021 (Percent of Households That Drink Milk)
  • Plastic Jugs Most Popular Milk Package by Far Despite Declines
  • Table 8.7 Milk Package Used in Last 6 Months, 2011-2021 (Percent of Households That Drink Milk)
  • Almond Milk Still Dominant Despite Oat Milk Gains
  • Table 8.8 Type of Non-Dairy Milk Alternatives Consumed in Last 6 Months, 2016-2021 (Percent of Adults That Drink Non-Dairy Milk Alternatives)
  • Key Opportunities
  • Replicate Real Dairy Experience With Alternatives
  • Animal-Free Dairy
  • Better Better-For-You
  • Better-For-Kids
  • Heightened Experiences
  • Address ESG Issues
Chapter 9: Energy and Sports Drinks
  • Sales Outlook
  • Market to Approach $42 Billion by 2026
  • Table 9.1 Energy and Sports Drinks Retail Sales, 2016-2026 (Million Dollars and Million Ounces)
  • Category and Segment Sales
  • Figure 9.1 Energy Vs. Sports Drinks Retail Dollar Shares, 2021-2026
  • Table 9.2 Energy and Sports Drinks Retail Sales: by Segment, 2016-2026 (Million Dollars)
  • Consumer Insights
  • Sports and Energy Drinks Especially Have Low Penetration
  • Table 9.3 Consumption Rates for Energy Drinks/Shots and Sports Drinks, 2011-2021 (Percent of Adults)
  • Pandemic Boosts Bottled Water Consumption Most
  • Figure 9.2 Covid-19 Pandemic Changes to Beverage Drinking Habits During the Work Day
  • Figure 9.3 Buying More Because of the Pandemic, 2021 (Percent of Adults)
  • Drinks Dominate, Shots a Smaller Niche
  • Table 9.4 Forms of Energy Drinks/Shots Drunk, 2011-2021 (Percent of Adults That Drinks Energy Drinks/Shots)
  • Energy and Sports Drinks Have Similar Consumption Patterns
  • Table 9.5 Number of Energy Drinks/Shots Drunk in Last 30 Days, 2011-2021 (Percent of Adults That Drinks Energy Drinks/Shots)
  • Table 9.6 Number of Sports Drinks Drunk in Last 30 Days, 2011-2021 (Percent of Adults That Drinks Sports Drinks)
  • Key Opportunities
  • Better Better-For-You
  • Heightened Experiences
  • Energy + Sports +
  • CBD-Infused
  • Hard Beverages
Chapter 10: Juices
  • Sales Outlook
  • Market Declining to About $20 Billion in 2026
  • Table 10.1 Juice Retail Sales, 2016-2026 (Million Dollars and Million Ounces)
  • Category Sales
  • Figure 10.1 Juices Retail Dollar Shares by Category, 2019-2021
  • Table 10.2 Juice Market Retail Dollar Sales by Category, 2016-2026 (Million Dollars)
  • Consumer Insights
  • Traditional Juice Consumption Declines
  • Table 10.3 Consumption Rates for Juices by Product, 2011-2021 (Percent of U.S. Households)
  • Pandemic Boosts Bottled Water Consumption Most
  • Figure 10.2 Covid-19 Pandemic Changes to Beverage Drinking Habits During the Work Day
  • Figure 10.3 Buying More Because of the Pandemic, 2021 (Percent of Adults)
  • Oj Cartons Continue Losing to Plastic Jugs and Glass Bottles
  • Table 10.4 Package Type of Orange Juice Drunk in Last 6 Months, 2011-2021 (Percent of Households That Drink Orange Juice)
  • Most Households Drink Only 1-2 Glasses of Oj Daily
  • Table 10.5 Glasses of Orange Juice Drunk by Household on Average Day, 2011-2021 (Percent of Households That Drink Orange Juice)
  • Apple Remains Favorite But Cranberry Makes Gains
  • Table 10.6 Flavors of Other Fruit Juices/Drinks Drunk Most Often, 2011-2021 (Percent of Households That Drink Other Fruit Juices/Drinks)
  • Most Households Drink Only 1-2 Glasses of Other Fruit Juice/Drinks Daily
  • Table 10.7 Glasses of Other Fruit Juices/Drinks Drunk by Household on Average Day, 2011-2021 (Percent of U.S. Households That Drink Other Fruit Juices/Drinks)
  • Key Opportunities
  • Better Better-For-You
  • Better-For-Kids
  • Juice +
  • Hard Juices
  • Heightened Experiences
  • CBD-Infused
Chapter 11: Tea and Ready-To-Drink Tea
  • Sales Outlook
  • Market to Reach $10 Billion in 2026
  • Table 11.1 Tea and Rtd Tea Retail Sales, 2016-2026 (Million Dollars and Million Ounces)
  • Category and Segment Sales
  • Figure 11.1 Tea and Rtd Tea Category and Segment Retail Dollar Shares, 2021, 2026
  • Table 11.2 Tea and Rtd Tea Retail Sales by Segment, 2016-2026 (Million Dollars)
  • Consumer Insights
  • Tea Bags Still Most Popular Despite Declines
  • Table 11.3 Consumption Rates for Tea, 2011-2021 (Percent of Households)
  • Pandemic Boosts Bottled Water Consumption Most
  • Figure 11.2 Covid-19 Pandemic Changes to Beverage Drinking Habits During the Work Day
  • Figure 11.3 Buying More Because of the Pandemic, 2021 (Percent of Adults)
  • Tea Drinkers Overwhelmingly Prefer Caffeinated
  • Table 11.4 Type of Tea Drunk in Last 6 Months, 2011-2021 (Percent of Households That Drink Tea Bags/Packages)
  • Regular Size Bags Preferred Tea Format
  • Table 11.5 Form of Tea Drunk in Last 6 Months, 2011-2021 (Percent of Households That Drink Tea Bags/Packages)
  • Herbal Tea Consumption Increases in 2020, 2021
  • Table 11.6 Flavor of Tea Drunk in Last 6 Months, 2011-2021 (Percent of Households That Drink Tea Bags/Packages)
  • Most Hot Tea Drinkers Drink 1-2 Cups Daily
  • Table 11.7 Cups of Tea Drunk by Household on Average Day, 2011-2021 (Percent of Households That Drink Tea Bags/Packages)
  • Flavored Rtd Iced Tea Preferred But Declining
  • Table 11.8 Type of Rtd Iced Tea/Kombucha Drunk Most Often, 2011-2021 (Percent of Adults That Drink Rtd Iced Tea/Kombucha)
  • Gains at Highest Consumption Levels for Rtd Tea
  • Table 11.9 Drinks/Glasses of Rtd Tea/Kombucha Drunk by Household in Last 7 Days, 2011-2021 (Percent of Households That Drink Rtd Tea/Kombucha)
  • Key Opportunities
  • Better Better-For-You
  • Heightened Experiences
  • Tea +
  • CBD-Infused
  • Hard Teas
  • Address ESG Issues