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Water is just fine.
With more brands than ever, Americans are making H2O their preferred choice and ditching carbonated soft drinks because of health concerns, a new report on the beverage industry shows.
Bottled water consumption has grown by nearly one-third over the past five years to 10.9 billion gallons in 2014. Meanwhile, soda — still the most popular drink in the U.S. — declined for the 10th consecutive year to 12.8 billion gallons, according to data from Beverage Marketing Corp.
Ready-to-drink teas and coffee as well as sports and energy drinks also are on the rise, with Americans cutting their intake of soda, milk and fruit beverages, said Gary Hemphill, managing director of BMC Research. Hemphill spoke at a beverage forum Wednesday in Chicago.
“The bottled water category is aided by its positioning as the ultimate health beverage,” Hemphill said.
With the rebound in the economy after the Great Recession, tap water consumption is falling as consumers splurge on pricier drinks, data from the Beverage Marketing Corp. show.
Change in tap water consumption From previous year
Bottled water, America’s second-most popular packaged beverage, is projected to overtake carbonated soft drinks by 2017.Consumers are looking for healthier refreshments. That’s why tea is growing, too. “It’s a tough future for carbonated soft drinks,“ Hemphill said.
Market share of selected beverage segment
Americans are watching their calorie intake. The typical consumer takes about 197 calories a day from beverages, according to the consulting firm. That’s down almost 25 percent from 263 calories in 2000. Water, again, is a big reason why.
Calories per day from beverages
Consumers are experimenting with new beverages such as coconut water, protein drinks, probiotics, grain-based beverages and kombucha. “Niche-market beverages performed better than mass-market products, Hemphill said.
Changes in emerging beverage categories
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Beverage data from Beverage Marketing Corporation
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