Grocers Rethink Beverage Aisle Organization
Grocers are rethinking beverage aisle organization due to changing consumer priorities and slowing category growth in beverage sales.
U.S. grocery stores are weighing a shift in how they display beverages after a new industry report highlighted changing consumer priorities and a slowdown in overall category growth.
Sales trends signal a need for change
According to the Food Industry Association’s inaugural Power of Beverage report, total beverage sales in food retail reached $295 billion in 2025, a 3 percent rise from the prior year. That increase is modest compared with the 7 percent annual growth the sector enjoyed between 2019 and 2024.
Non‑alcoholic drinks drove the bulk of the growth, climbing 5 percent to $221 billion. In contrast, alcoholic beverage sales fell 2 percent to $74 billion. Shoppers increasingly look for drinks that meet specific needs such as hydration, reduced sugar, or protein intake, especially among users of GLP‑1 medications.
Energy drinks and weight‑control beverages posted the strongest gains, each up 15 percent year‑over‑year. Coffee followed with a 13 percent rise.
Reorganizing aisles around benefits
FMI suggests that grocery stores could boost sales by reorganizing beverage aisles according to the benefits consumers seek. Instead of traditional categories like soda or juice, stores might group products by need states such as hydration, energy, protein, digestive support, and relaxation.
Merchandising cues could then highlight functional attributes—“electrolytes for hydration,” “protein to help keep you full,” or “low or no added sugar.” Samples, coupons, and bundled offers may encourage shoppers to try new options.
Online, the association advises retailers to provide detailed filters and product pages so shoppers can locate items that match specific goals. Digital tools become more important as e‑commerce’s share of beverage sales rises to 3 percent, according to Circana data.
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Social media is another emerging channel. TikTok generated $46 million in beverage sales during the fourth quarter of 2025, a modest but growing figure that retailers may want to monitor.
The shift targets health‑focused shoppers.
While the idea of reclassifying aisles sounds straightforward, the practical rollout could be uneven. Stores would need to redesign signage, train staff, and possibly renegotiate shelf space with suppliers. Those changes carry costs that may not be quickly offset by incremental sales, especially in markets where traditional categories still dominate.
FMI’s findings are based on a survey of more than 2,000 U.S. grocery shoppers conducted in late May, combined with Circana sales data and insights from Nichefire. The report notes that beverages ranked among the six top retail categories tracked by Circana for the 52 weeks ending November 29.
Retail analysts observe that a benefit‑focused layout could help premium and private‑brand products differentiate themselves, reducing the likelihood of “trade‑down” to lower‑priced alternatives. By emphasizing outcomes that matter to shoppers—such as staying hydrated during a workout or getting a protein boost after a meal—grocers may create a new value proposition that aligns with evolving consumer habits.
Whether the approach will deliver a lasting lift in sales remains to be seen. The market’s shift toward functional drinks suggests an opportunity, but the execution hurdles mean that not all stores will adopt the model at the same pace.
