FMI’s Inaugural Power of Beverage Report Highlights Consumer Habits with the $295 Billion Beverage Category

ARLINGTON, Va. - FMI - The Food Industry Association today released its inaugural Power of Beverage 2026 report, developed with Circana sales data and cultural trend forecasting from Nichefire. The findings provide the food retail industry with new insights into how changing consumer expectations are transforming beverage purchasing and creating opportunities for growth across the food industry.

"The beverage category represents a significant opportunity for the food industry to invest in innovative products that cater to grocery shoppers' expanding preferences when purchasing beverages," 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."

The report finds that beverages remain one of food retail's strongest growth categories, with shoppers spending nearly $295 billion on retail beverages in 2025, according to Circana. As consumers increasingly seek beverages that deliver specific benefits, from hydration and energy to protein, digestive health and relaxation, retailers have new opportunities to merchandise, market and organize the category around consumer needs, rather than traditional product segments.

"Consumers' beverage purchasing behavior is evolving faster than traditional category definitions," said Steve Markenson, vice president of research and insights at FMI. "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."

The Power of Beverage 2026 key findings:

• Function is becoming a primary beverage purchase driver, as shoppers increasingly seek beverages that provide hydration, energy, protein, digestive health, mood support and other wellness benefits.
• The beverage path to purchase is becoming increasingly digital, with ecommerce and social commerce reshaping product discovery and influencing buying decisions, particularly among younger consumers.
• Value extends beyond price. Sixty-one percent of respondents say low price defines good value in beverages, but the next most important value drivers are taste (46%), trusted quality (40%) and a brand they trust (39%).
• Beverage choices are increasingly tied to specific occasions and personal needs, creating opportunities for retailers to merchandise around need states rather than traditional categories.
• Social media may spark beverage discovery, but trust closes the sale. Nearly half (45%) of Gen Z say a beverage becomes more appealing when they learn about it from a creator or influencer, and millennials respond at nearly the same level.
  

The Power of Beverage 2026 also explores changing definitions of value, the growing role of trusted recommendations, emerging adult beverage occasions, shoppers' daily beverage rituals, and how retailers can better align merchandising with the ways consumers actually shop.

The Power of Beverage 2026 report is available now at FMI.org/Beverage.

What is the Power of Beverage 2026 report?

The Power of Beverage 2026 report is FMI's newest research publication, offering data-driven insights into beverage shopping behaviors, consumer preferences and emerging opportunities for food retailers and suppliers. Designed as an annual resource, it helps industry leaders understand how beverage purchasing is evolving and where future growth opportunities exist.

Why did FMI create Power of Beverage 2026 report?

Beverages have become one of the most important growth categories in food retail, yet much of the existing industry research focuses on product innovation rather than on how consumers shop for beverages. Nearly every grocery shopper purchases beverages, making the category a significant driver of traffic and customer loyalty. FMI developed the Power of Beverage 2026report to provide food retailers and suppliers with shopper-focused insights that support merchandising, marketing and category strategy.

What are some of the Power of Beverage 2026 key findings?

The Power of Beverage 2026highlights several important trends shaping beverage purchases today, including:

• Function is becoming a primary beverage purchase driver, as shoppers increasingly seek beverages that provide hydration, energy, protein, digestive health, mood support and other wellness benefits.
• The beverage path to purchase is becoming increasingly digital, with ecommerce and social commerce reshaping product discovery and influencing buying decisions, particularly among younger consumers.
• Value extends beyond price. Sixty-one percent of respondents say low price defines good value in beverages, but the next most important value drivers are taste (46%), trusted quality (40%) and a brand they trust (39%).
• Beverage choices are increasingly tied to specific occasions and personal needs, creating opportunities for retailers to merchandise around need states rather than traditional categories.
• Social media may spark beverage discovery, but trust closes the sale. Nearly half (45%) of Gen Z say a beverage becomes more appealing when they learn about it from a creator or influencer, and millennials respond at nearly the same level.
  

What is the Power of Beverage 2026 Methodology?

The Power of Beverage 2026methodology is: The consumer survey was programmed in Qualtrics and administered online to a nationally representative sample of shoppers. The findings outlined in this report are based on an online survey of 2,003 U.S. grocery shoppers age 18 or older conducted May 19-26, 2026. A sample size of 2,003 results in a maximum sampling error of plus or minus 2.0 percentage points at the 95% confidence level.

What contributions did Circana and Nichefire make to the Power of Beverage 2026?

In addition to the Power of Beverage 2026survey data, Circana provided data on various aspects of retail beverages from their point-of-sale (POS) and shopper panel data. References to this data are indicated throughout the report.

The report also incorporates insights from Nichefire, a predictive cultural intelligence research partner. Nichefire analyzes consumer conversations, search behavior, online communities, media, and sources of cultural influence to identify emerging ideas before they reach widespread adoption. Its technology measures factors such as growth velocity, persistence, cross-channel spread, and validation across multiple data sources to distinguish short-lived spikes from durable cultural shifts and forecast where those shifts may be heading over the next 12 to 18 months.

Where can the report be found?

The inaugural Power of Beverage 2026 report is available for download at www.FMI.org/Beverage.