Beverage Industry Basics

The American Beverage Association

Companies that belong to the American Beverage Association make and sell some of the world’s most popular non-alcoholic beverages. You might say that our members quench America’s thirst. At the same time, the American beverage industry is an important part of the nation’s economy.

According to Beverage Digest, in 2005, the U.S. non-alcoholic refreshment market totaled 14.7 billion cases (192-oz). Carbonated soft drinks made up 69.8 percent of the total with non-carbonated products comprising 14.9 percent and single-serve bottled water accounting for 15.3 percent. In 2007, Americans spent roughly $105 billion on refreshment beverages.

Producers of non-alcoholic refreshment beverages also provide well paying jobs, pay significant taxes and donate millions of dollars to numerous charitable causes. According to American Economics Group, Inc., direct, indirect and induced employment in the beverage industry means 3.02 million jobs that create $278 billion in economic activity. Direct compensation to 211, 000 beverage industry workers tops $9 billion. At the state and federal level, soft drink industry firms pay more than $30 billion of business income taxes, personal income taxes and other taxes with over $14 billion in taxes paid to state governments alone. In 2003 it is estimated that beverage companies donated $326 million to charities.