NAICS 312 - Beverage and Tobacco Product Manufacturing
Industries in the Beverage and Tobacco Product Manufacturing subsector manufacture beverages and tobacco products. The industry group, Beverage Manufacturing, includes three types of establishments: (1) those that manufacture nonalcoholic beverages; (2) those that manufacture alcoholic beverages through the fermentation process; and (3) those that produce distilled alcoholic beverages. Ice manufacturing, while not a beverage, is included with nonalcoholic beverage manufacturing because it uses the same production process as water purification.
In the case of activities related to the manufacture of beverages, the structure follows the defined productive processes. Brandy, a distilled beverage, was not placed under distillery product manufacturing, but rather under the NAICS class for winery product manufacturing since the productive process used in the manufacturing of alcoholic grape-based beverages produces both wines (fermented beverage) and brandies (distilled beverage).
The industry group, Tobacco Manufacturing, includes two types of establishments: (1) those engaged in redrying and stemming tobacco and, (2) those that manufacture tobacco products, such as cigarettes and cigars.
Industry trends:
One notable trend in the beverage and tobacco product manufacturing industry (NAICS 312) is the increasing consumer demand for healthier options. Beverage manufacturers are expanding their offerings to include low-sugar, organic, and non-alcoholic products to cater to health-conscious consumers. The rise of functional beverages, such as those enriched with vitamins, minerals, and probiotics, also aligns with this trend.
The craft beverage movement continues to gain momentum, with small-scale producers of beer, spirits, and other alcoholic drinks finding growing popularity. This trend is driven by consumer preference for unique, high-quality, and locally-produced options. Additionally, sustainability is becoming a critical focus, with companies emphasizing eco-friendly packaging and sustainable sourcing practices to appeal to environmentally conscious customers and meet regulatory requirements.
In the tobacco sector, there is a significant shift towards alternative nicotine products, such as e-cigarettes and heat-not-burn devices. These products are marketed as reduced-risk alternatives to traditional cigarettes, and they are gaining traction despite ongoing regulatory hurdles and health concerns. Overall, the industry is expected to continue experiencing innovation in product offerings and packaging, driven by evolving consumer preferences and stricter regulatory landscapes.
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