Food & Bev Briefing: Tariff Concerns, Alcohol Spending Boost & More

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Welcome to our food & beverage insights briefing,

In this monthly email, we will curate the most important insights from our team of industry, political and economic experts and deliver them right in your inbox. Consider it your one stop shop for the data you need to know about the food & beverage industry. 

We’re kicking off by diving into our new tariff research, both among U.S. and Mexican consumers. Then, a look at where food and candy rank in Gen Alpha’s spending priorities. Plus, a look at what consumers say is most important for a beverage brand to offer. 

Read on for recent insights into these topics and more, or download our full reports for a deeper dive.

The top 10 U.S. brands seeing declining purchase consideration in Mexico are disproportionately in the food & beverage industry

The top 10 U.S. companies that have seen purchase consideration declines in Mexico from January to March 2025 are clustered in the food & beverage, retail, automotive, and entertainment industries. The latter show smaller declines, while food & beverage dominates the top three spots with the largest drops. 

Of course, many other factors affect purchase consideration besides geopolitics, but the timing of the declines supports the idea that President Trump’s tariff threats are playing a major role in turning Mexican consumers off of U.S. products. See more about how Mexicans are responding to Trump’s tariff threats.

Majority of Americans expect grocery prices to rise because of tariffs

At least half of all U.S. adults expect tariff-related price increases on groceries, automobiles, gasoline, auto parts, pharmaceuticals, and personal electronics. Overall, price increase expectations are particularly pronounced across generational lines. Given that older adults are most likely to be exposed to information about tariffs, it stands to reason they are almost bracing for goods across all categories to cost more as a result. For example, 75% of baby boomers expect grocery prices to increase, but only 56% of millennials said the same. Read on to see the actions consumers say they’ll take in response to tariffs. 

Gen Alphas spend their own money on kid favorite categories like toys and candy

Alpha’s parents are split on the degree of control they have over children spending their own money. That money includes allowances, which 42% of Alphas receive, or other funds, like a crisp $20 bill in a birthday card from grandma. About half (51%) of Gen Alpha’s parents say they can at least spend some of their own money without parental restrictions. Those numbers are, of course, lower for the youngest Alphas. 

Kids predictably prioritize fun purchases with their own money, like toys, food or candy, and games. As they get older, in-app purchases, social time and personal care products (including makeup) become more common. Read more about how Gen Alpha is already influencing their family’s purchasing decisions. 

Both parties agree on the basics of what it means to live a healthy lifestyle

For the most part, Democrats and Republicans agree about the basics of healthy choices. Nearly equivalent shares of respondents agree that eating a healthy diet, getting enough sleep and exercising regularly are essential. Democrats were more likely to select options related to the healthcare systems, while Republicans showed a slight bias to actions within an individual’s control. For example, 32% of Democrats said that access to quality healthcare is one of the top three most important aspects of living a healthy lifestyle, but that share falls to 28% among Republicans. Prioritizing following recommended vaccination schedules shows a similar pattern. For more insights on health and wellness in the age of MAHA, download our full report.

Alcohol spending sees a boost, especially among millennials

Alcohol spending increased in the past few months amongst all adults, with a greater share reporting purchases in grocery/liquor stores as well as in bars. This comes off the heels of reduced alcohol spending through the end of 2024. 

Millennials, who generally lead the generational pack when it comes to alcohol spending, had pulled back particularly sharply last year. However, that trend appears to have endured a quick turnaround at the start of 2025. It’s unclear why alcohol spending (driven mostly by millennials) bounced back so strongly in recent months. Still, the economic outlook does threaten to weaken or reverse this trend, especially for alcohol brands impacted by tariffs. Get the latest data and analysis on consumer spending. 

What consumers believe is most important for a beverage brand to offer

It’s crucial for brands to know their audience to determine what features to dial up when communicating with them. For beverage brands trying to reach older consumers, that might look like focusing on value messaging, given baby boomers are 13 points more likely to say it’s important a beverage brand provides good value for the money they spend. If trying to reach younger consumers, eye-catching branding is a must. Gen Z and millennial consumers are 14 points more likely to say it’s important for a beverage brand to have “attractive and distinctive packaging that stands out,” compared with baby boomers. They may even buy a product simply because its logo slays. See how important consumers believe value and trust are when choosing a brand across a variety of industries in our full analysis.  

Want more insights? Dive into additional analysis from our team of experts below.

• U.S. Consumer Spending Tracker: Consumers across all income levels reported spending less money on groceries in March compared to the previous month. Meanwhile, consumers in the higher-income bracket reported spending more at restaurants.
• Ozempic users report experiencing a confidence boost while taking the medication. GLP-1 users attribute newfound confidence to the medication along with increased spending on discretionary products and services.
• 2025 State of Workers Report. How a frozen job market, AI, political disruption, and more are shaping Americans' feelings about work.
• Anti-Americanism & Brands Amid the Trump Tariffs. Insight into trends in anti-American sentiment across 42 global consumer markets