Press Release

United States Kids Beverage Market Revenue and Trends 2025 to 2033

The United States kids beverage market revenue surpassed US$ 18.84 billion in 2024 and is predicted to attain around US$ 30.24 billion by 2033, growing at a CAGR of 5.40% during the forecast period from 2025 to 2033.

The United States kids beverage market is experiencing a significant shift towards healthier, transparent, and sustainable products, driven by increasing health concerns and evolving consumer demand. This transformation is characterized by innovations such as clean labels, which emphasize ingredient transparency, and the rise of functional beverages that offer added health benefits. Additionally, brands are leveraging digital marketing strategies to engage with parents and children, enhancing brand visibility and loyalty.

Despite facing rising costs, companies that successfully adapt to these market trends are well-positioned for growth. The market thrives on several key factors, including flavor agility, which allows brands to quickly respond to changing consumer preferences, and a focus on functional wellness that addresses health-conscious choices. There is also a growing emphasis on sugar reduction and the introduction of plant-based alternatives, catering to the demand for nutritious and environmentally friendly options.

United States Kids Beverage Market Key Takeaways

• The United States kids beverage market is projected to achieve impressive sales revenue of US$ 30.24 billion by 2033, with a compound annual growth rate (CAGR) of 5.40% during the forecast period from 2025 to 2033.
• In terms of product type, fruit juice continues to maintain its leadership position in the U.S. kids beverage market, capturing a substantial 32.07% share. This popularity can be attributed to its alignment with parental health perceptions, well-established drinking occasions, and compatibility with regulatory standards.
• Within the realm of nutrition, low-calorie formulations have gained significant traction, achieving a 37% share of the market in 2024. This surge can be linked to the growing emphasis on health and wellness among parents, as well as the convergence of medical, regulatory, and lifestyle pressures that prioritize lower-calorie options.
• When examining the market by age group, children aged 5 to 12 account for more than 52% of the volume in the U.S. kids beverage market. This demographic uniquely combines factors such as autonomy, structured routines, and parent-funded purchasing power, making them a key target for beverage manufacturers.
• In terms of packaging type, tetra packs dominate the landscape of the U.S. kids beverage market, holding an impressive 48.32% share. The appeal of Tetra packs lies in their ability to address logistics, safety, and sustainability issues within a single modular format.

Market Overview

"Kids beverage" refers to any drink that is marketed or intended for consumption by children, often emphasizing flavor and, in many cases, being sugar-sweetened. This category encompasses a diverse range of drinks, including juices, flavored waters, fruit drinks, and even milk or chocolate milk. These beverages are designed to appeal to children’s tastes while catering to parents' preferences for nutritious options.

In the United States, juice and flavored milk are among the most popular beverages consumed by children. According to recent surveys, juice was cited by 74% of parents, making it a favored choice for many families. Flavored milk follows closely, with nearly 44% of parents reporting it as a preferred option for their children. This highlights the significant role these beverages play in children's diets and the importance of flavor in driving consumption.

The market is also witnessing an increasing demand for on-the-go yogurt drinks and dairy-based smoothies. These products cater to modern lifestyles, offering convenient and nutritious options for busy families. Companies are recognizing the shift in consumer preferences and are responding by expanding their product lines to include these innovative beverages.

Market Growth Factors

Driver

Growing Parental Demand for Reduced-Sugar Drinks: The U.S. Kids Beverage Market is experiencing a notable surge, driven by growing parental demand for reduced-sugar drinks. As childhood obesity rates continue to escalate, parents are increasingly seeking healthier beverage options for their children. This shift in consumer preference is prompting beverage manufacturers to reformulate products to lower sugar content while still maintaining great taste. 

School Nutrition Policies Support Fortified, Low-Calorie Beverages: In addition to parental preferences, school nutrition policies are playing a significant role in shaping the U.S. Kids Beverage Market. Many schools are implementing policies that promote the inclusion of fortified, low-calorie beverages in their lunch programs. These initiatives aim to provide children with healthier drink options while aligning with broader public health goals to combat obesity. 

Restraint

Balancing Taste Acceptance and Sugar Reduction: One of the critical challenges facing the U.S. Kids Beverage Market is the need to balance taste acceptance with significant sugar reduction. Many parents are increasingly concerned about the health implications of high sugar in beverages, prompting a demand for products with lower sugar levels. However, achieving this balance can be a formulation bottleneck for manufacturers. 

Rising Ingredient Costs Squeeze Profit Margins: Another significant factor that may hamper market growth is the rising cost of ingredients. As ingredient prices continue to escalate, beverage manufacturers face squeezed profit margins, particularly in a market where parents are price-sensitive. Many families are looking for affordable options that do not compromise on quality or health benefits. 

Top Trends

Functional Fortification Enhances Premium Kids Offerings: The U.S. Kids Beverage Market is witnessing a significant trend towards functional fortification in product offerings, particularly those targeting premium segments. By incorporating essential vitamins, probiotics, and electrolytes, beverage brands are able to differentiate their products in a competitive landscape. Parents are increasingly seeking beverages that not only quench thirst but also provide added health benefits for their children.

Shift to Eco-Friendly Packaging: Another notable trend in the U.S. Kids Beverage Market is the shift toward recyclable paper-based packaging. This change is primarily driven by the rising eco-consciousness among families who are increasingly prioritizing sustainability in their purchasing decisions. As consumers become more aware of the environmental impact of plastic waste, there is a growing expectation for brands to adopt more sustainable packaging solutions. 

Top Players in the US Kids Beverages Market 

• Atkins Nutritionals Inc.
• Britvic PLC
• Campbell Soup Company
• Danone SA
• Groupe Lactalis
• Honest Tea
• Kellogg Company
• Keurig Dr Pepper Inc.
• Kiddiwinks
• Kraft Heinz Company
• Lifeway Foods Inc.
• Mondelez International Inc.
• Nestle SA
• PepsiCo
• Vitaco Health NZ Ltd.
• Welch's
• Other Prominent Players

Market Segmentation Overview:

By Product Type

• Fruit Juices
• Water Based
  • Coconut Water
  • Flavored Water
  • Others
• Smoothies and Blends
• Energy Drinks
• Herbal Tea
• Flavored Milk
  • Chocolate
  • Strawberry
  • Banana
  • Vanilla
  • Others
• Others

By Nutrition

• Low Calorie
• Organic
• Probiotic
• Others

By Age Group

• 2-5 years
• 5-12 years
• 12-15 years

By Packaging

• Canned
• Bottled
• Tetra Pack

By Price Range

• Standard
• Premium

By Distribution Channel

• Online
• Offline
  • Hypermarket
  • Supermarket
  • Retail Stores
  • Specialty Stores
  • Others