US Food and Beverage Industry Growth Slows as Consumers Adapt to Financial Pressures

Circana's latest research reveals that the US retail food and beverage industry has slowed down in growth, from 2.2% in the first half of 2026 to a projected 2-3% range in 2027. This slowdown is attributed to consumers adapting to financial pressures, shifting lifestyle priorities, and changing digital shopping behaviors.

According to Circana's Compass research, volume sales are expected to remain flat through the balance of 2026 as consumers become more efficient in their spending. However, price/mix growth should continue at similar rates, driven by steady product mix shift and higher but stabilizing price growth in packaged goods.

In contrast, European and Asia-Pacific sales have seen a surge due to rising inflation, with F&B value growth expected to reach 4% or more for the year. In Australia and New Zealand, F&B sales growth is anticipated to remain above 5%, driven by cost-related price increases and consumers spending more on premium products.

Circana identifies three pivotal drivers shaping the consumer landscape in 2027 and beyond: pressured wallets, balanced living, and increasing algorithmic influence. As households navigate ongoing financial pressures, consumers are becoming more intentional about where they spend, balancing health, wellness, and enjoyment while prioritizing the outcomes they value.