Essential Food & Beverage Briefing: Navigate Tariff Challenges, Discover Alcohol Spending Trends, and More!

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Essential Food & Beverage Briefing: Navigate Tariff Challenges, Discover Alcohol Spending Trends, and More!

Welcome to our latest insights on the food and beverage industry. Today, we’re diving into some interesting consumer trends, including the impact of tariffs and changing spending patterns among different age groups.

Let’s start with recent observations about U.S. brands losing favor in Mexico. A significant number of U.S. companies, especially in the food and beverage sector, have seen a drop in consumer interest from January to March 2025. While industries like retail and automotive showed minor declines, food and beverage brands took the biggest hits. This downturn could be attributed to political factors, particularly the tariff threats from the previous administration. Data suggests that consumer sentiment in Mexico is shifting away from American products due to these geopolitical tensions. Learn more about how these tariffs are affecting perceptions.

Meanwhile, back home, at least half of U.S. adults anticipate that tariffs will raise grocery prices. This expectation varies by age—75% of baby boomers foresee higher costs, in contrast to 56% of millennials. Many consumers are bracing for increased prices across categories, including groceries, gasoline, and electronics. These concerns may lead to lifestyle adjustments, as people seek to manage their budgets amid rising costs. Explore how consumer behaviors may shift in response.

Now let’s talk about Generation Alpha. This newest generation is starting to make its own spending choices. About 42% of these kids get allowances or gifts, and many are using that money for fun purchases like toys and candy. Interestingly, as they grow older, their interests evolve—shifting towards in-app purchases and personal care items. This shift indicates that Gen Alpha is already influencing family spending decisions. Read more on how their preferences are shaping the market.

When it comes to health, there’s surprising agreement among Americans, regardless of political affiliation. Both Democrats and Republicans largely agree on the importance of healthy eating, regular exercise, and sufficient sleep. However, Democrats lean more towards emphasizing healthcare systems while Republicans focus on individual actions. For example, 32% of Democrats highlight access to quality healthcare as essential, compared to 28% of Republicans. This consensus suggests a shared understanding of wellness fundamentals. Check out our full report for deeper insights.

On a lighter note, alcohol spending has seen a resurgence, particularly among millennials who previously reduced their purchases. This trend is notable as it contrasts sharply with last year’s behaviors. Though economic challenges could influence future spending, the recent uptick suggests that millennials are more willing to enjoy their time out again. Find out more about the current trends in consumer spending.

Lastly, what do consumers seek from beverage brands? Quality and transparency are increasingly vital. As shoppers grow more health-conscious, they want to see transparency in ingredients and ethical production processes. Modern consumers are not only looking for taste but also for brands that align with their values. Dive into our findings on consumer preferences.

Stay tuned for more insights and updates in the ever-changing food and beverage landscape.



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