U.S. beverage demand is forecast to increase 2.9% yearly in nominal terms through 2025, 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, the Cleveland-based market research firm states. Faster gains will be limited by ongoing consumer concerns regarding the negative health effects of alcohol and sweetened beverages.
In 2021, beverage demand is projected to rise slightly as the economy recovers following the restrictions imposed due to the COVID-19 pandemic. The return of some workers to offices and other workplaces will support sales of soft drinks and bottled water from vending machines.
Demand for alcoholic beverages ― the largest and fastest-growing discrete segment ― is expected to rise 4.4% annually to 2025. Suppliers will benefit from the ongoing popularity of novel beverages such as craft beer varieties and hard seltzers. Growth in disposable personal incomes will help boost demand in value terms as consumers choose such options, which are often more expensive.
The report forecasts to 2021 and 2025 U.S. beverages demand and shipments in nominal U.S. dollars at the manufacturer level.
To illustrate historical trends, total demand, total shipments, the various segments, and trade are provided in annual series from 2010 to 2020.
This report includes the results of a proprietary national online consumer survey of U.S. adults (age 18+). This Freedonia Focus Reports National Survey has a sample size of approximately 2,000, 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.