Just in time for Thanksgiving and the holiday season, there’s some good news for food and beverage processors. Circana (formerly IRI) and his NPD Group have released their 2024 Food and Beverage Outlook, predicting a modest volume increase this year after three consecutive years of volume declines.
“Amid changing consumer preferences and evolving market dynamics, our Food & Beverage Outlook not only highlights key growth opportunities in 2024, but also the myriad challenges the industry has faced over the past few years. “We present a cautiously optimistic outlook for our way out of the challenges,” he said. Sally Lyons Wyatt, Circana Executive Vice President and Practice Leader. “With continued innovation and adaptability, retailers and manufacturers will be poised for success next year and beyond.”
Circana noted in a previous release in May 2023 that 86% of its annual meal opportunities come from grocery stores and other retailers. Officials said the figures show household spending still accounts for a larger portion of food and drink sales at 60%. Looking ahead, Circana predicts that the beverage and deli sector will continue to outpace overall food and beverage sales in his 2024.
One of the factors driving beverage growth is likely to be an increase in health-conscious consumers seeking more protein and energy options in their diets. Analysts at Circana noted that the beverage sector also “showed more innovation than other sectors, creating excitement and driving category exploration.” In deli corners, convenient grab-and-go options drive sales as consumers prioritize meal options that meet a variety of needs.
Changes in consumer preferences in other departments across the store could put pressure on unit sales growth. Circana believes that to be successful in 2024, perimeter aisles will need to optimize turnkey options for consumers on the go. The frozen sector needs to reevaluate its assortment both in-store and online to ensure a variety of products are available to meet consumer needs. Consumers will look to CenterStore for solutions that offer convenience, quality and value.
Last June, Circana also featured the theme of innovation in its 2022 New Product Pacesetter, an annual survey of major new product launches in food and non-food categories. Ranked by first-year sales, Circana’s top 10 food and beverage winners are Alani Nu, Dr Pepper Zero Sugar, Chick-fil-A Sauces, Truly Punch, Truly Margarita Style, Mtn Dew Spark, and Tattooed Chef , Red Bull Green Edition, Gator Light, and Topo Chico Hard Seltzer.
“Consumers have a strong appetite for new products, and the 2022 Pacesetters represent companies and brands that meet real needs and wants with a focused, strategic approach,” said Circana. said Joanne Driggs, Vice President of Content and Thought Leadership. “Manufacturers and retailers who prioritize innovation are more likely to increase sales and foster loyalty.”
Sarkana said its report “demonstrates the enduring power of FMCG innovation, with consumer spending on new products continuing to rise last year despite challenges around high inflation, supply chain adjustments and raw material costs.” I’m making it clear that I did it.” The 2022 new product Pacesetter achieved his impressive $6.8 billion in first-year sales of combined food, beverage, and non-food solutions. In comparison, the Pacesetter’s sales in 2021 were $6 billion.
What are the new flavors, functions, and product formats that are trending in stores today? A summary of this year’s Industry New Products Annual Report reveals: cooked food Six “power trends” appear for each category. These trending topics include plant-based products, natural and organic products, sugar reduction, added protein, immunity, and sustainability.
Let’s take a look at new food and beverage trends and flavors by category.