According to new data released by Circana, the food and beverage industry is stabilizing in 2024, with volume growth of 0.8%, price increases of 1.4%, and top-line growth of 2.2%. These mid-year figures closely align with earlier projections, signaling a recovery after several years of economic volatility and setting the stage for moderate growth in 2025.
The findings are part of Circana’s Mid-Year 2024 Food and Beverage Market Outlook, which provides a comprehensive update on the sector’s performance and a forecast for the coming year.
These figures are nearly identical to Circana’s forecast of a 1.0% volume increase and a 1.6% price hike for 2024.
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“Following several years of economic volatility, we’re now seeing signs of stabilization across various sectors, including food and beverage,” said Sally Lyons Wyatt, global executive vice president and chief advisor at Circana. “Manufacturers will need to strategically assess how to stimulate demand and drive profitable growth, and Circana provides the data-driven insights necessary to inform those decisions.”
Key 2024 Mid-Year Insights
- Volume Growth: 0.8% (close to the 1.0% forecast)
- Price Increase: 1.4% (slightly lower than expected)
- Top-Line Growth: 2.2% (in line with 2.3% forecast)
- Consumer Trends: The shift from away-from-home to in-home consumption is a major factor stabilizing the market.
Inflation continues to ease across the sector, with consumer behavior showing a divide: some opt for premium-priced goods, while others prefer more affordable private brands.
Notably, refrigerated and frozen food segments are outperforming expectations, while seafood and liquor have seen volume declines.
2025 Food and Beverage Market Projections
Circana projects a slight uptick in 2025 top-line growth, with expectations ranging from 2.5% to 3.5%. This growth will be driven by price realization, which is expected to rise by 2.0-3.0%, while volume growth moderates between 0-1.0%.
This forecast signals that while inflationary pressures may persist, market stability is expected to continue.
Compared to the U.S., the global retail food and beverage market in regions such as Europe, the Middle East, Africa (EMEA), and Asia–Pacific is expected to outperform, with top-line growth projected to reach 4.0-5.0%.