The 2020 worldwide pandemic had numerous effects on many companies and business entities. The entire world market took a major hit due to the intense pandemic situation. Many people were let go of their jobs to compensate for the huge dip in the market. But many companies have also adapted to the Covid situation and its effects on the markets. These companies have realized that innovative ideas to generate and market products that can be used during the pandemic are the best way to navigate through the rapid market changes in 2020.
The U.S Beverage industry came up with numerous ways to still drive their sales and keep their market value. Beverages were never going to dip in the market; they just needed to be sold in different methods during the pandemic. Due to their low overhead and ability to pivot quickly, start-up food and beverage companies have done well during this period. According to many beverage intelligence companies, they were, however, largely unable to take advantage of PPP loans and other similar programs that would have been beneficial during this time.
There is a “great divide” between manufacturers and retailers. Many manufacturers have thrived and will continue to thrive during this period. Retail businesses continue to struggle and have had to be creative in order to survive. The beverage industry adapted quite rapidly to the lockdown situation by still maintaining various means of keeping their customer connections. In this article, we shall detail a few things to know about the U.S. Beverage industry during the infamous 2020 pandemic.
- Popular Beverage Categories: The beverage market is diverse, with a wide range of product types available, including carbonated beverages, coffee, dairy alternatives, dairy beverages, energy and sports drinks, juice, tea, and water (including bottled and enhanced).
- The COVID-19 Pandemic: The pandemic caused deficits in the food service market (such as school cafeterias and restaurants that have closed or operate at reduced capacity), but the retail sector has seen a significant increase in demand. Due to the widespread shifts to online learning and working from home, consumers have stocked up on shelf-stable products and consumed more beverages at home.
- Forecast for the Beverage Market: Packaged Fact analysts predict that demand for beverage products will return to normal levels and growth of beverage industry trends after 2022. In 2024, major product beverage categories are expected to exceed $170 billion in sales.
- Grocery eCommerce Growth: Even before the pandemic, online grocery sales, including internet beverage sales, had been rapidly increasing. This trend has only been accelerated by COVID-19. However, e-commerce still accounts for a very small portion of beverage sales, and as one might expect, some categories, such as coffee and tea, sell significantly better than certain types of fresh perishable beverages.
- Beverage Industry Trends: Due to rising obesity and diabetes rates, consumer preferences have shifted toward healthier, low-sugar, and clean-label beverages in the last five years. Consumers are embracing more plant-based beverages as part visit us of a larger trend toward more natural and environmentally sustainable products. Furthermore, consumers are looking for beverages that contain less sugar and natural sweeteners, as well as beverages that contain immunity-boosting ingredients like turmeric, ginger, antioxidants, vitamins, and probiotics.
- Trending Beverage Categories: Beverage categories that are performing well include bottled water, flavored sparkling water, and dairy alternatives. Energy drinks and coffee are also popular due to their caffeine and delightful appeal.
- Worst-Performing Categories: Beverages perceived as sugary and high in artificial ingredients, such as juice and soda, have suffered as a result of recent wellness trends.
These were the major changes that occurred during the 2020 Covid-19 pandemic. This is how they kept their businesses and their overall market afloat.