United States Kids Beverage Market to Surpass Valuation of USD 25.8 Billion By 2032 | Astute Analytica

The United States kids beverage market is shifting towards healthier, transparent, and sustainable products due to rising health concerns and consumer demand. Innovations include clean labels, functional beverages, and digital marketing strategies. Despite challenges like rising costs, brands that adapt to these trends are poised for growth.

New Delhi, July 03, 2024 (GLOBE NEWSWIRE) — The United States kids beverage market is projected to hit sales revenue of US$ 25.8 billion by 2032, up from US$ 17.7 billion in 2023 at a CAGR of 4.3% during the forecast period 2024–2032.

The kids’ beverages market in the United States is witnessing significant growth, driven by a variety of factors. Prominent beverages consumed by children include juice, which is consumed by approximately 74% of children, and flavored milk, consumed by nearly 44% of children. The market size for kids’ food and beverages was valued at US$ 53.11 billion in 2023 and is projected to reach US$ 95.45 billion by 2032, growing at a CAGR of 6.73%. This growth is fueled by the increasing focus on health-conscious choices, with parents becoming more aware of the nutritional value of the beverages they provide to their children. Additionally, the rise of plant-based and allergen-free options is a notable trend, reflecting the growing demand for healthier alternatives.

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Some of the key states in the U.S. are leading consumers of kids beverage market. For instance, in 40 states and the District of Columbia, more than half of the children drank a sugar-sweetened beverage at least once during the preceding week. The demand for kids’ food and beverages is particularly high in states with higher median household incomes, as these households are more likely to spend on premium and healthier beverage options. This high demand is also supported by effective marketing and branding strategies that target children through various media channels.

The strong growth in the demand for kids beverage market in the United Stats can be attributed to several factors. Increasing awareness among parents about the importance of providing healthy and nutritious beverages is a primary driver. The prevalence of obesity among children, which stands at approximately 19.3%, has also led to a shift towards healthier beverage options. Moreover, the rising disposable income among U.S. households enables parents to invest in premium beverage options for their children. The market is highly competitive, with both established players and new entrants striving to capture a larger market share. The fruit drinks segment dominates the market and is expected to maintain its prominence, supported by the popularity of tetra paks packaging. The growing demand for functional beverages and plant-based alternatives presents significant opportunities for market growth.

Key Findings in United States Kids Beverage Market

Market Forecast (2032) US$ 25.8 billion
CAGR 4.3%
By Product Fruit Drinks (76.3%)
By Packaging Type Tetra Pack (62.1%)
By Distribution Channel Hypermarket/Supermarket (54.4%)
By Label  Branded (51.1%)
Top Trends
  • Health-focused beverages with natural ingredients gaining popularity.
  • Increased demand for low-sugar and sugar-free options.
  • Sustainable and eco-friendly packaging becoming a priority.
Top Drivers
  • Parental concern for children’s health and nutrition.
  • Rising awareness of childhood obesity and related issues.
  • Innovative product launches targeting specific dietary needs.
Top Challenges
  • Balancing taste preferences with health-conscious formulations.
  • Navigating strict regulations on marketing to children.
  • Competing with established brands and market saturation

Strong Surge in Fruit Drink Consumption Among US Kids, Contributes Over US$ 13.5 Billion

The consumption of fruit drinks among US kids has skyrocketed, with a significant 63% of children aged 2 to 11 drinking fruit beverages daily (CDC, 2023). This trend in the kids beverage market is driven by several factors, including aggressive marketing strategies by beverage companies. In 2022, companies spent over $1.8 billion on advertising fruit drinks to children, a 15% increase from 2021 (AdAge, 2023). The colorful packaging and cartoon characters appeal directly to kids, influencing their preferences. Moreover, parents, often seeking convenient and seemingly healthy options, contribute to this trend. A Nielsen report (2023) revealed that 78% of parents believe fruit drinks are a healthier choice compared to soda.

Nutritional perceptions play a crucial role in driving demand in the United States kids beverage market. Despite only 30% of fruit drinks being made from actual fruit juice (USDA, 2023), 65% of parents perceive these beverages as beneficial for their children’s health (Mintel, 2023). This misconception is fueled by labels boasting “100% Vitamin C” and “No Added Sugar,” which 92% of parents find appealing (Consumer Reports, 2023). The convenience factor can’t be overlooked either; 85% of parents purchase pre-packaged fruit drinks for their ease of use, especially for school lunches (Packaged Facts, 2023).

Social influences and trends also play a significant role. Peer influence is strong, with 74% of kids preferring beverages their friends drink (Harvard T.H. Chan School of Public Health, 2023). Additionally, societal shifts towards on-the-go lifestyles mean that 68% of households have increased their purchase of single-serve fruit drinks. The combination of marketing, perceived health benefits, and social trends underscores why fruit drinks have become a staple in the diets of US children.

Power of Branding: Unveiling the Dominance of Branded Kids Beverages in the US, Accounts for Revenue of US$ 9.0 Billion

Branded kids beverages overwhelmingly dominate the US kids beverage market, primarily due to their trustworthiness and established reputations. According to a 2023 Astute Analytica’s report, branded beverages account for 72% of the US market, with brands like Capri Sun and Kool-Aid leading the pack. These brands offer consistent quality, which 84% of parents cite as a critical factor in their purchasing decisions (Mintel, 2023). Moreover, brands invest heavily in safety and nutritional transparency, with 67% of parents more likely to choose a known brand for its perceived reliability.

Marketing strategies significantly drive demand for branded kids beverage market. The study also found that 89% of parents are influenced by advertising when selecting beverages for their children. Branded beverages benefit from extensive advertising budgets, with companies like Nestlé and Coca-Cola spending upwards of $2 billion annually on marketing (Ad Age, 2023). Additionally, partnerships with popular children’s shows and characters enhance brand recognition and appeal; for instance, 78% of parents reported choosing beverages featuring characters their children love (Forbes, 2023).

In-store placement and packaging innovation also contribute to the prominence of branded beverages. Branded products are strategically placed at eye level in 85% of major retail stores, increasing visibility and accessibility (Retail Dive, 2023). Visually appealing packaging that includes vibrant colors and interactive elements attracts 76% of children, influencing their parents’ purchasing choices (Packaging World, 2023). Consequently, branded kids beverages continue to outshine private labels, driven by a combination of brand trust, persuasive marketing, and strategic retail positioning.

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Tetra Pak Triumph Generates Over US$ 11.0 Billion, Unpacking the Popularity of Kids’ Beverage Packaging

The dominance of Tetra Pack in the kids beverage market is no accident. In the U.S., Tetra Pack account for 65% of children’s beverage packaging, largely due to their unparalleled convenience and safety features. These cartons, made from 75% paperboard, 20% polyethylene, and 5% aluminum, are lightweight and easy for small hands to hold. Their aseptic nature ensures the beverages remain fresh without preservatives; a critical factor given that 82% of parents prioritize natural ingredients for their children. Furthermore, a tetra Pack is 30% lighter than plastic bottles, reducing transportation costs by 15% and thereby enhancing their appeal to manufacturers.

Environmental sustainability is another significant driver of Tetra Pak demand in the United States kids’ beverage market. With 60% of U.S. consumers expressing a preference for eco-friendly packaging, Tetra Packs stand out for their recyclability. The cartons are 100% recyclable, and in 2023, over 45% of Tetra Packs in the U.S. were recycled a 10% increase from 2020. This aligns with the growing trend where 70% of millennials, who are now parents, are willing to pay more for sustainable products. Additionally, Tetra Packs use 40% less plastic than traditional plastic bottles, reducing their carbon footprint by 25%, further aligning with the eco-conscious values of modern consumers.

Economically, Tetra Pack offers a cost-effective solution for manufacturers. The aseptic packaging process extends the shelf life of beverages by 50%, minimizing waste and optimizing inventory management. In 2023, the U.S. kids’ beverage market saw a 12% reduction in spoilage costs due to Tetra Pak’s extended shelf life. This packaging also supports high-speed filling lines, with a throughput of 9,000 packs per hour, boosting production efficiency by 20%. Consequently, Tetra Packs provides a blend of safety, sustainability, and economic benefits that make them the preferred choice for U.S. kids’ beverage manufacturers.

US Kids Beverages Market Key Players

  • The Coca-Cola Company
  • PepsiCo Inc.
  • Nestlé S.A.
  • Danone S.A.
  • Keurig Dr Pepper Inc.
  • Kraft Heinz Company
  • Campbell Soup Company
  • Ocean Spray Cranberries Inc.
  • Honest Tea (The Coca-Cola Company)
  • Groupe Lactalis
  • Welch’s
  • Hain Celestial Group Inc.
  • Other Prominent Players

Key Segmentation:

By Product Type

  • Health/Sports/Energy Drinks
  • Fruit Drinks
  • Others

By Packaging Type

  • Bottles
  • Tetra Pack
  • Others

By Distribution Channel

  • Hypermarket/Supermarket
  • Convenience Store
  • Online
  • Others

By Label

  • Branded
  • Own Label

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