Beverage market continues to grow, along with private label offerings
According to a recent blog from market intelligence company PipeCandy, the global beverage industry is valued at $1.8 trillion for 2022, with private label beverages expected to continue expanding. Growing at a compound annual growth rate (CAGR) of 4%, the industry is expected to be valued at $1.96 trillion by 2024.
Last fall, Store Brands hosted its Store Brands Industry Forum on Beverages, featuring experts from the coffee & tea, dairy, non-alcoholic and alcoholic beverage segments.
“As most of the popular leading retailers are coming up with their own private-label brands, private-labeled products are fastly occupying the central rows of the major retail stores,” wrote Vijaya Sripada. “For instance, Walmart, Kroger, Albertsons, Trader Joe’s, Whole Foods Market, Target Corp., and Costco all have launched private-label drinks of various beverages categories. This is bringing loads of traction and growth in the private label beverage market.”
U.S. non-alcoholic beverage market size is valued at $225 billion in 2022, growing at a CAGR of 3.8%. The industry will be valued at $234 billion in 2023, and $236 billion in 2024. Carbonated soft drinks (CSD) have been shrinking in size and revenue in recent years, and the market size for functional beverages is expected to grow and expand in the upcoming years. PipeCandy says this shrink in the market share soft drink category is compensated by the rise in the market share for the subcategories such as fresh juices, enhanced water, RTD coffee, probiotic drinks, etc. In addition, younger Americans are migrating from CSDs to healthier alternatives.
The alcoholic beverage segment is also growing with help from private label brands, though not as much as non-alcoholic drinks. The size of the U.S. alcoholic beverage market is estimated to be $237 billion in the year 2022, growing at a CAGR of 3.7%. The U.S. alcoholic industry comprises 80% malt-based beverages and 20% of spirit-based beverages. Among the malt-based beverages, beer is the most consumed product while the interest in crafted beers is trending among the Millennials (the major sect of consumers in this market).
“It is an exciting time to be in the beverage industry,” added Sripada. “Products such as kombucha, cold brew coffee, and hard seltzer are now filling the front and center of grocery display cases. On the other hand, new products such as CBD-infused beverages and vegan beverages are in demand as well. Changes in lifestyle and consumption habits of the new-age consumers are two major reasons driving this change.”
The full blog from PipeCandy can be found here.