Consumers spend $181 billion annually on beverages in foodservice

CHICAGO, Sept. 12, 2017 /PRNewswire/ -- Findings from Technomic Inc.'s 2017 Away-From-Home Beverage Study indicate that nonalcohol beverages are a large and growing part of the foodservice industry. From staples like soft drinks, teas, coffees and juices to emerging categories like cold-brew coffee, energy drinks and enhanced waters, hot and cold beverages accounted for over $181 billion in annual sales and totaled over 113 billion servings in 2016. Although soda and regular coffee continue to drive beverage volume overall, formats like specialty coffee (hot and iced), bottled water and energy drinks are expected to continue their already rapid growth in the next three to five years.

"Beverages account for $1 out of every $5 consumers spend away from home," said David Henkes, senior principal at Technomic. "They are a critical part of the overall experience and, because of their central importance, it's absolutely crucial for restaurant operators and their suppliers to understand how innovation impacts consumer satisfaction." Adds Patrick Egan, manager of research and insights, "flavored waters, plant-based milks, cold-brew coffee, aguas frescas and fresh-pressed juices are some of the categories taking advantage of modern consumer beverage preferences."

While key attributes like taste and refreshment still dominate the consumer mindset, there is an increased emphasis on beverage health and functionality due to demographic (i.e., generational, ethic) and regulatory (e.g., regional soda taxes, mandatory calorie labeling) shifts. No longer are consumers simply looking for a convenient meal compliment; rather, they are coming to foodservice operations seeking fulfillment of diverse beverage occasions like snacks, pick-me-ups or meal replacements. As such, manufacturers and operators need to come prepared with multifunctional items that can serve a variety of dayparts.

Additional key takeaways from the report include:

• Diet beverages sweetened with zero-calorie sugar substitutes (e.g., aspartame) are no longer perceived to be healthy. Other, more natural sweeteners such as agave, Stevia and honey are among the better-for-you sweeteners capturing increased consumer and operator attention.
• While brand-name beverages are still critical to consumers—over 50% consider brand name either somewhat or very important—younger generations tend to downplay brand importance relative to older generations.
• Pricing and taste remain the top two attributes operators emphasize when sourcing their beverage products.

Insights were collected from more than 800 foodservice operators and more than 3,000 consumers through comprehensive surveys, in-depth interviews and interactive discussion boards, with supplemental findings from Technomic's exclusive Digital Resource Library and MenuMonitor tools.

About Technomic

Only Technomic, a Winsight company, delivers a 360-degree view of the food industry. We impact growth and profitability for our clients by providing the most reliable consumer-grounded channel-relevant data with forward-looking strategic insights. Our services range from major research studies and management consulting solutions to online databases and simple fact-finding assignments. Our clients include food manufacturers and distributors, restaurants and retailers, other foodservice organizations and various institutions aligned with the food industry. Visit us at technomic.com.  

About Winsight LLC

Winsight LLC is a business-to-business media, event, data and information company specializing in the convenience-retailing, restaurant and noncommercial foodservice industries. Winsight has an extensive media portfolio with leading publications, including CSP, Convenience Store Products, Restaurant Business, FoodService Director and now Grocery Headquarters as of June 2017. Winsight Media offers a suite of digital products, including websites, e-newsletters, webinars, video, apps and custom marketing solutions. The Winsight Events group produces exclusive large-scale executive-level conferences, including Restaurant Leadership, Global Restaurant Leadership, FARE Conference, Outlook Leadership, Convenience Retailing University, FSTEC, Restaurant Trends & Directions and MenuDirections. Winsight also owns Technomic Inc., the leading provider of market information and advisory services for the food industry. For more information on Winsight and its brands, go to http://www.winsightmedia.com.

Contacts:

Purchasing details: Patrick Noone, (312) 506-3852, [email protected]

Press inquiries: Dave Henkes, (312) 506-3927, [email protected]

Report details: Patrick Egan, (312) 506-3923, [email protected]

SOURCE Technomic

Related Links

http://www.technomic.com