Technomic study reveals COVID-19 impact on beverages

A new report from Technomic illustrates the impact that the COVID-19 pandemic has had on the beverage category of foodservice.

The report is a deliverable of Technomic’s Away-From-Home Beverage Navigator program, which offers a comprehensive assessment of both hot and cold beverage categories, including market sizing, historical tracking, predicted growth, consumer insights, operator responses, major trends and market dynamics.

Key findings

Among the report’s key conclusion were that overall beverage sales were down 31 per cent on a volume basis and down 29 per cent in consumer spending.

Cold dispensed beverage volume fell 30 per cent while hot beverages were down 34 per cent in volume in 2020. 35 per cent of operators reduced the number of beverages that they were offering due to COVID-19.

52 per cent of consumers who ordered food from foodservice without a beverage say they did so because they already had a beverage at home, up from 47 per cent who said the same in 2019 

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“While the beverage category took a hit due to the pandemic, it remains a critical piece of revenue and profitability for foodservice operators. Going forward, operators will need to focus on keeping up with changing dynamics and planning for the industry’s recovery,” explains David Henkes, senior principal and head of strategic partnerships at Technomic. “From focused daypart strategies to re-establishing themselves into consumers’ post-pandemic routines, operators will need to understand changing consumer habits in order to guide foodservice beverage strategies.”