Modest food and beverage volume growth is expected next year after three consecutive years of declines, according to a new report from retail data firm Circana.
The outlook report points to a “more favorable landscape” as several headwinds that weighed down 2023 are predicted to recede, according to a news release.
Notably, the report said high inflation is expected to ease considerably next year. Circana analysts said an improving economic environment and growing promotional investments also will help.
“Amid shifting consumer preferences and evolving market dynamics, our food and beverage outlook not only highlights key growth opportunities for 2024 but reveals a cautiously optimistic outlook as we emerge from a myriad of challenges that the industry has faced over the past several years,” Sally Lyons Wyatt, executive vice president and practice leader for Circana, said in the release. “With continued innovation and adaptability, retailers and manufacturers will be poised to position themselves for success in the coming year and beyond.”
Circana predicts the beverage and deli sectors will carry on outperforming overall food and beverage unit sales in 2024.
In the deli aisle, the Circana report said convenient grab-and-go options will likely continue driving sales as consumers prioritize meal options that address diverse needs. Volume growth may be more difficult to achieve for store perimeter departments such as fresh produce, the report said.
To succeed in 2024, Circana’s research indicates that perimeter aisles (produce, meat, dairy) will need to optimize turnkey options for on-the-go consumers, the release said.
