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Trends In The Food & Beverage Industry

15 Best Trends In The Food & Beverage Industry

Last Updated on March 17, 2024 by Shari Mason

Staying informed about the latest advancements in the Food and Beverage Industry is essential for food and beverage manufacturers, especially if they wish to stay on top of consumer trends and not fall behind their competitors.

However, predicting and adapting to essential details like these can be challenging. Fortunately, we have found the most significant information to guide this 2023. 

Read on to learn more.

Food & Beverage Industry Stats in America Quick Summary 

woman shopping in a grocery store
  • The Meal Kit Delivery Services market will see a 13% compound annual growth rate (CAGR) from 2021 to 2028.
  • In 2022, the most consumed type of beverage was bottled water, which accounted for roughly 25% of beverage consumption in the US.
  • Wellness beverages, probiotics, and plant-based categories are expected to trend in 2023.
  • Almost 25% of Millennials and Gen Z consumers claim it is important to know where their food came from, while only 13% of Baby Boomers do. 
  • Nearly 73% of Gen Z believe that their generation is more concerned about the environmental impact of food choices than other generations.
  • According to a 2022 survey, Americans place a high value on sustainability
  • There are roughly 1,500 Ghost Kitchens in the US, and nearly 51% of restaurant owners have already shifted to using them.
  • Only 21% of Gen Z and about 42% of millennials drink on a regular basis.
  • The food market, amounting to US$996.40 B of revenue in 2023, is expected to grow annually by 3.40% (CAGR 2023-2027).
  • Younger Generation Z consumers are less interested in drinking alcoholic beverages than previous generations, but Millennials are for no- and low-alcohol consumers.

Top 15 Food & Beverage Industry Facts, Trends & Statistics For 2023

1. Wellness beverages, probiotics, and plant-based categories will trend in 2023.

infographics about the food categories trend

The International Food Information Council claims that probiotics, wellness beverages, and plant-based products will impact the food and beverage industry in 2023. 

Data Bridge Market Research analyses that the plant-based food market was valued at $14.3 billion and is expected to reach $88.00 billion by 2029, at a CAGR of 25.5% during the forecast period of 2022-2029. [1]

Fun Fact: According to the Vegetarian Resource Group 2022 report, 3% of the US population is vegetarian, and another 3% is vegan. 

Read: How Much Revenue Does A Taco Truck Make?

2. Almost 25% of Millennials and Gen Z consumers claim it is important to know where their food came from, while only 13% of Baby Boomers do. 

Recent reports claim that 3 (64%) out of 4 shoppers prioritize transparency about ingredient and nutrition information.

However, young consumers are also becoming interested to learn where their food comes from. Almost 25% of Millennials and Gen Z consumers claim it is important to know where their food came from, while only 13% of Baby Boomers do. [2]

According to other reports, 72% of shoppers consider transparency to be extremely important and that it boosts their trust in manufacturers and retailers. 

Almost 64% (⅔) of shoppers say they are willing to shift from a brand they usually buy to another brand with more detailed product information beyond what is provided on the physical label.

3. Nearly 73% of Gen Z believe that their generation is more concerned about the environmental impact of food choices than other generations.

Nearly 73% of Gen Z consumers claim that their generation is more concerned about the environmental impact of their food choices, followed by Millennials with 71%. 

When compared to Baby Boomers, Gen Z consumers are more likely to purchase plant-based products and products with a small carbon footprint/carbon neutral.

Gen Z (35%) and Millennials (37%) also shop online for food at least once a week, while Gen X (24%) and Baby Boomers (11%) only do so. 

Fun Fact: The overall number of US adults who do food online shopping at least weekly recorded a 5% increase, from 20% in 2021 to 25% in 2022.

4. A 2022 survey revealed that at least 52% of Americans reportedly follow a diet or eating pattern driven primarily by consumers under age 50, which is 13% higher than 39% in 2021.

infographics about a survey of the diet and eating pattern of Americans

There was a 13% rise in the total number of US adults under age 50 who follow a diet or eating pattern, according to a 2022 survey result.

The most common diets or eating patterns in 2022 are:

  • plant-based – 12%
  • mindful eating – 14%
  • clean eating – 16%

Nearly one in three (31%) said they’ve been eating more protein from whole-plant sources, other plant-based dairy alternatives (23%), and more soy-based milk/yogurt (18%) in 2022.

5. According to a 2022 survey, Americans highly value sustainability. 

A 2022 survey revealed that 39% of Americans value sustainability highly, impacting their decisions to buy certain foods and beverages. It was 27% higher compared to 2019. 

In addition, more than 57% of consumers are concerned about food waste [3], while only 40% said that their concern was because of the impact on the environment. 

At least 45% of consumers also said knowing that the workers who produce, distribute or serve their food are treated fairly and equitably impacts their decision to purchase a food or beverage.

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6. The market for gluten-free goods, with an estimated value of $6.4 billion, is anticipated to increase at a CAGR of 9.8% from 2022 to 2030.

The market for gluten-free goods was estimated to be worth USD 5.9 billion in 2021 and is anticipated to increase at a CAGR of 9.8% from 2022 to 2030.

Although the GFCF diet is commonly used to treat children with autism, the Gluten-Free and Casein-Free (GFCF) Diet is predicted to soar in 2023.

– Eat Pallet Restaurant & Food Advice

7. In 2023, the non-alcoholic beverages market already recorded a whopping $496.50 billion, and it is expected to grow by 3.90% annually, with a CAGR 2023-2027.

The non-alcoholic beverage industry soared to $760 billion in 2022, nearly half the estimated global beverage market value of $1.8 trillion.

In 2023, the non-alcoholic beverages market already recorded a whopping $496.50 billion, and it is expected to grow by 3.90% annually, with a CAGR 2023-2027.

According to Statista, 4.2% of the industry’s total revenue will be generated through online sales by 2023. And by 2027, 20% of volume consumption and 62% of spending in the No-Alcoholic Beverage industry will be attributable to out-of-home consumption, like restaurants and bars. [4]

8. Only 21% of Gen Z and about 42% of millennials drink on a regular basis.

infographics about how often millennials and gen z drink

Only 21% of Gen Z and about 42% of millennials drink on a regular basis. Seeing the newer generation drink less and less, somewhat at a rapid rate, it’s easy to conclude that there’s an evident shift in culture because the younger generations are much more health conscious. [5]

9. As of December 2022, the US beverage industry has a total market cap of $762.3 billion.

The non-alcoholic beverage industry generates roughly $447.38 billion in revenue annually in the United States.

Soft drink sales accounted for $297.5 billion, while carbonated soft drink sales across the nation amounted to over $297 billion of the nation’s $447 billion beverage industry revenue in 2022.

10. In 2022, bottled water was the most popular non-alcoholic beverage in the United States.

In 2022, the most consumed type of beverage was bottled water, which accounted for roughly 25% of beverage consumption in the US. Energy drinks and value-added water were among the least favorite beverages that year. [6]

Fun Fact: The average American consumes roughly 45 gallons of bottled water

11. Recent reports predict the Meal Kit Delivery Services market will see a 13.4% CAGR from 2021 to 2028.

The Grand View Research Meal Kit Delivery Services Market Share Report 2021 – 2028 predicts the market will see a 13.4% compound annual growth rate (CAGR) from 2021 to 2028.

Cook-and-eat kits, which recorded 60% of kit purchases in 2020, are predicted to stay in the lead until 2028.

Even though cook-and-eat kits are expected to remain the most popular option, heat-and-eat kits are predicted to experience the fastest growth rate of 13.4% from 2021 to 2028. [7]

12. The food market, amounting to $996.40 billion of revenue in 2023, is expected to grow annually by 3.40% (CAGR 2023-2027).

infographics about the total revenue of food market annually

The Food Market revenue amounts to US$996.40bn in 2023 and is expected to grow annually by 3.40% (CAGR 2023-2027). Its largest segment is Confectionery and Snacks, with a US$299.50bn market volume in 2023.

The average volume per person in the Food market is expected to amount to 534.80kg in 2023. [8]

13. Younger Generation Z consumers are less interested in drinking alcoholic beverages than previous generations, but Millennials are for no- and low-alcohol consumers. 

Younger Generation Z consumers are less interested in drinking alcoholic beverages than previous generations, but Millennials are for no- and low-alcohol consumers. 

According to IWSR, Millennials like to switch between alcoholic and non-alcoholic (or low) beverages, and 78% of no- and low-alcohol drinkers also drink standard alcohol. Furthermore, those who don’t drink at all (abstainers) now account for 18% of these consumers. [9]

14. Ghost Kitchens had a major impact on 2022, as predicted by Forbes in 2021.

infographics about the impact of ghost kitchens

In a 2021 report made by Louis Biscotti, a Forbes contributor and National Leader, Food & Beverage Services Group, Ghost Kitchens will have a major impact on 2022. 

He backed up his claim by stating that 60% of consumers now order delivery or pickup at least once a week, and takeout is predicted to rise to 21% of restaurant industry sales by 2025. [10]

Fun Fact: There are roughly 1,500 Ghost Kitchens in the US, and nearly 51% of restaurant owners have already shifted to using them.

15. Food authenticity is sought-after by global consumers.

In fact, Emplifi reported that 2023 would be the year of authenticity with brands. 

Furthermore, many brand owners will use user-generated content (UGC), “customer influencers,” and emerging platforms like TikTok and BeReal to market their brands. 

Food authenticity is one of the major factors influencing global consumers in choosing the food they want in 2023.

– Eat Pallet Restaurant & Food Advice

82% of Generation Z consumers said they put more trust in brands that leverage real-life customers’ images in their marketing than those that do not. [11]

Fun Fact: The global food authenticity market grew from $7.32 billion in 2022 to $7.81 billion in 2023 at a CAGR of 6.7%, and it is expected to grow to $10.15 billion in 2027 at a CAGR of 6.8%. [12]

FAQs 

u003cstrongu003eWill there be a food shortage in 2023?u003c/strongu003e

Yes, according to the World Food Programme (WFP), there might be a food shortage in 2023, specifically of wheat and corn, two staple products in the food supply chain. u003cbru003eu003cbru003eThe WFP also estimates that such shortages will increase global food prices and might trigger a new global recession.

u003cstrongu003eWill food prices continue to rise in 2023?u003c/strongu003e

Yes, food prices will continue to rise in 2023, but still at above-historical average rates. The USDA predicts a 7.9% increase in all food prices in 2023, with a 5.5% to 10.3% prediction interval. [u003ca href=u0022https://www.ers.usda.gov/data-products/food-price-outlook/summary-findings/#u0022 target=u0022_blanku0022 rel=u0022noreferrer noopeneru0022u003e13u003c/au003e]

In A Nutshell 

It’s always important to remember that trends in the Food and Beverage Industry shift constantly, so your band should also adapt to these changes to stay afloat, if not on top. 

Seeing the industry from the customer’s perspective to the relevant numbers can help your brand determine how your success will flourish in the coming years ahead. 

References:

  1. https://www.globenewswire.com/en/news-release/2023/01/24/2594775/0/en/Plant-Based-Food-Market-is-Likely-to-Upsurge-USD-88-00-Billion-Globally-by-2029-Size-Share-Trends-Demand-Growth-and-Opportunity-Analysis.html#
  2. https://www.merriam-webster.com/dictionary/baby%20boomer
  3. https://www.hsph.harvard.edu/nutritionsource/sustainability/food-waste/
  4. https://www.statista.com/outlook/cmo/non-alcoholic-drinks/united-states
  5. https://www.marketplace.org/2022/10/24/whats-driving-the-boom-in-the-non-alcoholic-drink-industry/
  6. https://www.statista.com/statistics/387199/us-consumption-share-of-beverages-by-segment/
  7. https://www.grandviewresearch.com/industry-analysis/meal-kit-delivery-services-market#
  8. https://www.statista.com/outlook/cmo/food/india
  9. https://www.forbes.com/sites/louisbiscotti/2021/12/01/predictions-for-the-food–beverage-industry-for-2022-and-beyond/ 
  10. https://emplifi.io/press/social-media-marketing-predictions-2023-year-of-authenticity 
  11. https://www.forbes.com/sites/katedingwall/2022/12/23/the-no-alcohol-drinks-market-surpassed-11b-in-2022/
  12. https://www.globenewswire.com/news-release/2023/03/03/2620308/0/en/Food-Authenticity-Global-Market-Report-2023.html
  13. https://www.ers.usda.gov/data-products/food-price-outlook/summary-findings/
Shari Mason

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