FMI – The Food Industry Association has released its inaugural “Power of Beverage 2026” report, finding that U.S. shoppers spent nearly $295 billion on retail beverages in 2025 and are increasingly buying based on function rather than traditional product categories.
The Arlington, Virginia-based association developed the report using Circana sales data and cultural trend forecasting from Nichefire. It argues that as consumers seek beverages delivering specific benefits – from hydration and energy to protein, digestive health and relaxation – retailers have an opportunity to merchandise around consumer needs rather than conventional segments.
“The beverage category represents a significant opportunity for the food industry to invest in innovative products that cater to grocery shoppers’ expanding preferences,” said Leslie G. Sarasin, president and CEO of FMI. “To date, much research has been done about beverage tastes, trends and packaging, but there are few insights into how consumers are shopping for beverages and what their daily beverage repertoire entails. This research dives deep into the beverage habits of consumers to provide valuable insights for the food industry.”
Steve Markenson, VP of research and insights at FMI, added, “As shoppers increasingly buy beverages based on functional benefits and specific occasions, food retailers have an opportunity to organize the category around how consumers make decisions rather than how products have historically been classified.”
Key findings
The key findings from Power of Beverage 2026 are:
- Function is becoming a primary purchase driver, as shoppers seek beverages offering hydration, energy, protein, digestive health, mood support and other wellness benefits.
- The path to purchase is becoming increasingly digital, with e-commerce and social commerce reshaping product discovery, particularly among younger consumers.
- Value extends beyond price. While 61 percent of respondents said low price defines good value, the next most important drivers were taste (46 percent), trusted quality (40 percent) and a trusted brand (39 percent).
- Beverage choices are increasingly tied to specific occasions and personal needs, creating opportunities to merchandise around need states rather than traditional categories.
- Social media may spark discovery, but trust closes the sale. Nearly half of Gen Z (45 percent) said a beverage becomes more appealing when they learn about it from a creator or influencer, with millennials responding at nearly the same level.
The report is based on an online survey of 2,003 U.S. grocery shoppers age 18 or older conducted May 19-26, with a maximum sampling error of plus or minus 2 percentage points. Circana contributed point-of-sale and shopper panel data, and Nichefire provided cultural trend analysis.
FMI said it designed the report as an annual resource. It is available at FMI.org/Beverage.