Taste, convenience and pandemic impact alcohol sales
June 24, 2020
Swings and shifts are impacting the wine and spirits markets are ongoing, with recent trends influenced by everything from preference and packaging to taste and technology, impacting the performance of both categories and driving shifts in the top performers.
Despite the fact that tea market sales have remained relatively flat, there have been small pockets of growth in the $6.1 billion ready-to-drink (RTD) tea category, which saw a compound annual growth rate (CAGR) of 2.2 percent from 2013-2018, noted Los Angeles-based IBISWorld’s December 2018 report titled “RTD Tea Production in the US” in the June issue of Beverage Industry.
As consumer focus on health and nutrition increases, the beverage market is booming with a variety of functional beverages that cater to sports and muscle recovery, hydration and convenience. In addition, the market is projected to grow, especially as ingredient manufacturers release innovative ingredients optimized for both efficacy and portability.
After several years of declining sales, refrigerated orange juices, fruit juices and lemonades are experiencing upticks of 7.1 percent, 6.2 percent and 8.8 percent, respectively. Yet, the juice and juice drinks category is experiencing its share of twists and turns as health-conscious consumers are turning away from traditional juices with high sugar content and seeking lower-sugar options.
The coffee category continues to boom, with growth in all segments. The ready-to-drink category saw the highest percentage of growth compared to the prior year, but single-cup coffee pods are one of the categories experiencing the highest sales.
ON DEMAND: As the North American beverage market continues to experience growth, the categories fueling this performance are not the top performers of yesteryear. Instead the future vision for the beverage industry is coming from smaller factions.
Beverage Industry’s October issue spotlights leaders throughout the beverage market and how they are steering their company’s throughout the pandemic. Also in this issue is an update on the bottled water market and it continues to post strong volume gains, how natural and organic retailers are combating broader competition, the ingredient solutions available for next-generation performance beverages, and much more!