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State of the Marketplace is a quarterly report, offering a comprehensive analysis of the dynamic landscape within the beverage industry. Want to learn more? Check out our State of the Marketplace article that walks through the benefits and impact.
the big picture of the market
In 2024, Q1 showed a decline that reflected the decrease in consumer and government spending. However, increases in consumer spending on services was offset by a decline in goods spending.
Consumer spending on services was led by:
- healthcare
- financial services
- insurance
Goods spending may have be been lower, but was led by:
- gasoline
- other energy goods
It is important to note that increased government spending reflected increases in compensation for state and local government employees, primarily.
Source: U.S. Bureau of Economic Analysis
the ups and downs of consumer ratings
As consumer sentiment spiked again in Q1, consumer confidence saw a downward turn; consumer sentiment has been improving, but Consumer Confidence Index (CCI) reveals consumers may be less optimistic about the future.
Source: FRED – Bureau of Labor Statistics, Bureau of Economic Analysis The Conference Board; NBER
NARTD in retail
Total NARTD (non-alcoholic ready-to-drink) is up 1.6% in Retail Dollars in Q1, driven by strong growth in Energy, Sparkling Soft Drinks (SSD), and Value Added Dairy (VAD).
Source: NielsenIQ Total US AMC YTD as of W/E 4/6/24. Share shown for manufacturers (does not include System Brands)
Channel develop-ments
Large Store & Club and Small Store channels continue to contribute an outsized share of growth. Convenience Retail (CR) had the slowest growth of 0.4%
Source: NielsenIQ Total US AMC; NARTD Comp Set (Excludes Conventional Dairy and Bulk Water) W/E 3/30/24
Foodservice declines
Meanwhile, Foodservice traffic in Q1 was down nearly 2% vs a year ago, driven by traffic decline at major chains.
Source: NPD CREST for Commercial Restaurants Only (Excludes Retail Foodservice, Excludes Starbucks); Beverages excludes alcohol, tap water, hot tea, hot chocolate, smoothies, and shakes/malts/floats
By evaluating the trends of yesterday, we
can see how they will impact today.
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