Trendspotting: Health-conscious consumers expected to drive food and beverage volume in 2024

After three consecutive years of volume declines retailers can expect modest food and beverage volume growth next year, according to Circana, formerly IRI and The NPD Group.

High inflation is anticipated to ease considerably next year, and the impact of increased mobility on retail food and beverage consumption will likely be less pronounced. In addition, Circana research shows that several factors will impact food and beverage growth throughout 2024, including an improving macroeconomic environment and growing promotional investments.

“Amid shifting consumer preferences and evolving market dynamics, our food and beverage outlook not only highlights key growth opportunities for 2024 but reveals a cautiously optimistic outlook as we emerge from a myriad of challenges that the industry has faced over the past several years,” said Sally Lyons Wyatt, executive vice president and practice leader, Circana. “With continued innovation and adaptability, retailers and manufacturers will be poised to position themselves for success in the coming year and beyond.”

Circana research also indicates that specific departments are expected to lead the pack in volume growth. Specifically, the beverage and deli sectors are expected to outperform overall food and beverage unit sales in 2024. One factor likely driving beverage growth is an increase in health-conscious consumers seeking more protein and energy options in their diet. Another likely factor fueling beverage sales increase is that it has had more innovation than other departments, which delivered excitement and encouraged category exploration.