This article looks at the 10 best beverage stocks to buy according to analysts.
Consumer behavior plays a key role in shaping any industry, and the beverage sector is no exception. The industry is witnessing a noticeable shift in drinking habits, with Americans becoming more conscious about what they consume due to health considerations. There has been an increase in demand for low and no-alcohol beverages, and several companies are jumping on the bandwagon and producing drinks with all of the taste but those that are low on or without alcohol.
READ ALSO: 8 Best Beverage Dividend Stocks To Buy According to Hedge Funds and 50 Drunkest Counties in Every State in the US.
According to a consumer sentiment survey commissioned by NCSolutions (NCS) in early 2024, around 61% of Generation Z intended to cut down on alcohol consumption, representing a 53% year-over-year increase in the share of respondents who said they planned on drinking less alcohol. A little over one-third of the demographic cohort participants said they were interested in trying a beverage that aligns with a sober curious lifestyle.
On the other hand, 49% of millennials responded by saying they plan to reduce their alcohol consumption, an increase of 26% from the survey findings in 2023. Overall, 41% of Americans hoped to drink less in 2024, compared to 34% the year before. These results reflect the gaining popularity of the sober curious movement in the United States, driven by strong interest from the younger generation.
According to Fortune Business Insights, the non-alcoholic beverages market size in the United States was valued at $161 billion in 2023. It is projected to increase to nearly $226 billion by 2030, at a CAGR of 4.91%. The rising popularity of refreshment drinks and mocktails, coupled with innovative marketing and branding strategies of beverage manufacturers are propelling growth in the non-alcoholic beverage market.
Despite consumer behavior shifts within the beverage industry, the overall outlook for the sector is promising. According to a report by Research and Markets, its market size is expected to reach $2.29 trillion by 2030. The industry continues to see robust demand amid rising disposable incomes globally and rapid expansion in developing economies.
However, Trump’s announcement of a 25% tariff on all imported steel and aluminum is a looming threat to the American beverage industry, as about 75% of all new beverage launches in North America now appear in aluminum cans. The tariffs are expected to increase input costs and lead to a rise in prices for end consumers, which could adversely impact struggling categories in the beverage industry.
With that said, let’s now head over to the list of the best beverage stocks to buy according to analysts.
A close-up of bottles of whisky and other alcoholic beverages from a winery.
Methodology
For this article, we sifted through screeners to identify stocks in the beverage industry that had an average share price upside potential of 20% or higher as of the close of day on February 20, 2025. Then we listed the top 10 stocks in ascending order of their average share price upside potential. We have only considered stocks that had at least three analyst ratings.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Beverage Stocks to Buy According to Analysts
10. Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX)
Average Share Price Upside Potential as of February 20: 20.23%
Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) produces and distributes Coca-Cola trademark beverages in different markets of Latin America. It also operates in the retail industry through small-box chain stores under the OXXO brand.
Despite a soft consumer environment, especially in Mexico, the company reported encouraging financial results during the third quarter of fiscal 2024, with most business segments reporting revenue growth and margin expansion. Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) has also announced several divestments in recent months as part of its FEMSA Forward strategy, which was laid out in 2023 to drive long-term value.
In October, Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) entered into a definitive agreement with AMMI to divest its plastics solutions operations for 3,165 million pesos on a cash-free, debt-free basis. The transaction was completed on January 3. In November, the company’s refrigeration and food service equipment operations, Imbera and Torrey, were acquired by Mill Point Capital LLC for 8,000 million pesos.
Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX)’s bottling business remains solid and is steadily growing. The divestiture of non-essential businesses will allow the company to continue shareholder returns. OXXO’s robust expansion plans for the United States have also set FMX well for future growth.
Wall Street analysts are bullish on the stock, with a consensus Buy rating and an average share price upside potential exceeding 20%, making Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) one of the best beverage stocks to buy according to analysts.
9. Anheuser-Busch InBev SA/NV (NYSE:BUD)
Average Share Price Upside Potential as of February 20: 20.41%
Anheuser-Busch InBev SA/NV (NYSE:BUD) is a Belgium-based company engaged in beer manufacturing. Its brand portfolio includes notable names like Budweiser, Bud Light, Corona, and Stella Artois. With nearly 27% of the share of global beer production in 2023, it is the largest beer company in the world.
In January, the company inked a brewing agreement with Pabst Brewing Company, marking the integration of a former competitor into its supply chain. The move is also expected to boost Anheuser-Busch InBev SA/NV (NYSE:BUD)’s beer volumes in the U.S. Beginning in the first quarter of 2025, several of Pabst’s iconic brands are set to be brewed at AB InBev facilities after the former’s 20-year partnership with Molson Coors ended in December 2024.
Anheuser-Busch InBev SA/NV (NYSE:BUD) benefits immensely from its wide global presence. During the third quarter of fiscal 2024, it reported a 50% volume increase and 60% revenue growth in its markets. The company is also making gains in the non-alcoholic beer category and has expanded its market share in over 60% of the markets, driven by strength in Corona Cero sales.
Anheuser-Busch InBev SA/NV (NYSE:BUD) is committed to return value to shareholders. In October last year, the Board approved a $2 billion share repurchase program to be executed within the next 12 months. The company was also recently listed by Insider Monkey among the 13 Best Foreign Dividend Stocks To Buy According to Analysts.
Wall Street analysts are bullish on the stock, with a consensus Buy rating and an average share price upside potential of over 20%. Investor sentiment also continues to improve. According to Insider Monkey’s database for Q4 2024, 31 hedge funds held a stake in Anheuser-Busch InBev SA/NV (NYSE:BUD), up from 26 at the end of the third quarter.