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Specialty Beverages Sales Continue to Grow

Specialty Food Association

Specialty food purchases are on the rise, with 76 percent of adult consumers reporting that they purchase specialty food, show the findings of the SFA’s Today’s Specialty Food Consumer Research. Sales of specialty beverages have also grown, with 10 drink categories experiencing an average increase of 4.2 percent in in-store purchases from 2020 to 2022. They include:

• Milk and plant-based milk (51 percent of specialty food consumers purchasing in 2022)

• Water and sparkling water (49 percent)

• Juice (fruit and/or vegetable) (46 percent)

• Soda and carbonated beverages (43 percent)

• Coffee and hot cocoa (non-RTD) (43 percent)

• Alcoholic beverages (e.g., beer, wine, spirits) (39 percent)

• Coffee (RTD) (37 percent)

• Tea (non-RTD) (34 percent)

• Tea (RTD) (31 percent)

• Functional beverages (RTD) (e.g., energy, protein, kombucha) (31 percent)

Beverages have made an agile transition in the face of omnichannel retailer strategies. Shoppers are increasingly looking to online grocery options to fulfill their beverage needs. “Four of the 5 most-purchased categories online are beverages, up from two in 2020,” according to the report. “Largest gains came from water, soda, and milk/plant-based milk.”

The report cited the opportunity provided by Gen Z shoppers. Makers and marketers are encouraged to capitalize on younger generations’ interest in specialty items.

“Last year’s report said that the supply chain has growth opportunities with specialty beverages, and the sector could be a gateway for Gen Zs to broader usage of specialty products. In 2022, we see this happening in beverages,” the report reads. “While Millennials and Gen X are the leading consumers in this space, Gen Z is growing fastest.”

Historically, beverages have been considered, to some degree, a discretionary purchase. As such, sales are closely tied to fluctuations in household income. Coming out of the pandemic, however, the category has seen many big wins despite economic uncertainty.

Related: Cold-Brew Coffee, Functional Tea Highlight RTD Category; Food Prices Remain High, Inflation Slows

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