US beverage demand to rise 1.6 percent annually
The Cleveland-based Freedonia Group forecasts that beverage demand in the United States will rise 1.6 percent annually in nominal terms through 2023, according to the market research firm’s “Beverages: United States” report. Gains will stem from increases in population and disposable personal income, which will drive purchases of higher-end and niche beverages, with the value of U.S. beverage shipments expected to advance at a 1.6 percent annual pace, it states.
In particular, suppliers of alcohol beverages will benefit from heightened consumer interest in premium products and brands, particularly in terms of craft beer and spirits. Demand in the leading beverage alcohol segment is expected to advance 3.6 percent each year, the fastest growth among all beverage segments, according to the report.
Gains will result from rising disposable income and the increasing popularity of wine as well as craft and novel alcohol beverages, like hard seltzers. Demand for milk substitutes also is expected to expand 1.6 percent annually, the second best performance among all segments. This trend reflects a continued movement away from traditional dairy milk and toward healthier substitute products, the report states.
In addition to key insights about alcohol beverages, the report provides intelligence on carbonated soft drinks, dairy and substitute milk, fruit beverages, bottled water and other ready-to-drink (RTD) beverages such as energy drinks, iced coffees, sports drinks and tea. BI