Non-alcoholic Beverages: The Consumer - US

Published by: Mintel International Group Ltd.

Published: May. 1, 2008 - 89 Pages

Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Data sources

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

Demographic shifts drive increased demand for healthier beverage options

Market drivers—Demographic factors

Market drivers—Obesity and the shift from health to “wellness”

Adult usage

Hispanics and blacks are likely to drive future growth in soda, energy drinks, and sport drinks

Price, health promoting attributes, and brand are the most important consideration in purchasing beverages

Regular soda is perceived the least healthy while bottled water continues to be perceived as the most healthy non-alcoholic beverage

The key consumers, i.e. adults aged 18-34 are more likely than average to shop at Wal-Mart and convenience stores

Custom consumer groups

MARKET DRIVERS—DEMOGRAPHIC FACTORS

Key points

Age and generational differences drive beverage choice and demand

Adults aged 18-34 continue to drive growth for most non-carbonated beverages

Increase in the proportion of 55-74s drives demand for diet drinks and vegetable juice

Figure 1: US population, by age, 2002-12

Growth of the Hispanic and black segments will continue to contribute to demand for regular soda 11

Figure 2: Population, by race and Hispanic origin, 2002-12

White incomes remained flat between 2000-06, but median black and Hispanic incomes declined significantly

Figure 3: Median household income, by race/ethnicity, 1980-2006

Figure 4: Discretionary household income, by race/ethnicity, 2003

Primary Hispanic household shoppers are often high-value beverage customers

Figure 5: Households, by household size and race, 2006

MARKET DRIVERS—OBESITY AND THE SHIFT FROM HEALTH TO “WELLNESS”

Key points

Obesity concerns drive demand for diet beverages

Figure 6: Percentage of population who are overweight or obese, 20-74 years of age, 1988-2004

The dieting craze—consumers diet but obesity rates remain high

Figure 7: Select non-alcoholic beverage usage by sub-category, dieters vs. general population, May 2006-June 2007

Governmental efforts to promote healthier living drives demand for BFY beverages

Some Americans are aspiring to a more holistic notion of health, that some refer to as “wellness”

Nutrition education in practice is likely to increase in the future

THE PEOPLE: USAGE

Key points

Category snapshot: Healthy beverages are rising in popularity as use of (many) calorie-dense beverages decline

Figure 8: Summary of trends in personal consumption of soda, bottled water, sports drinks, and energy drinks, 2003-07

Figure 9: Summary of trends in household consumption of fruit juice/juice drinks, milk, powdered soft drinks, coffee, and tea, 2003-07

Use of regular carbonated beverages are declining, but convenient, innovative-flavored, low-calorie soda will continue to gain ground

Figure 10: Trended personal incidence and frequency of adult soda usage, 2003-07

Women continue to be the primary consumer for diet soda

Figure 11: Adult soda usage, by gender, May 2007-June 2007

Adults aged 18-34 are key regular soda consumers; aging adults turn to diet soda

Figure 12: Adult soda usage, by sub-category, by age, May 2006-June 2007

Fruit juice and juice drinks’ household penetration remains steady; consumption frequency declines

Figure 13: Household incidence and frequency of fruit juice and juice drinks usage, 2003-07

Household consumption of fruit juice/juice drinks declines by the age of householder

Figure 14: Adult fruit juice/juice drinks usage, by age, May 2006-June 2007

Use of healthy milks are on the rise while whole and chocolate milk use is on the decline

Figure 15: Household incidence and frequency of milk usage, 2003-07

Figure 16: Household incidence milk usage, by type, by age, May 2006-June 2007

Bottled water

Figure 17: Personal incidence and frequency of drinking bottled water, 2003-07

On-the-go lifestyle boosts bottled water consumption among young adults

Figure 18: Personal incidence of drinking bottled water, by age, May 2006-June 2007

Coffee

Figure 19: Household incidence and frequency of drinking coffee, 2003-07

Figure 20: Household incidence of drinking coffee, by age, May 2006-June 2007

RTD coffee finds equal acceptance among all age groups

Figure 21: Personal incidence of drinking RTD coffee, by age, May 2006-June 2007

Tea

Figure 22: Personal incidence of drinking RTD iced tea and household incidence of using tea bags and loose tea, 2003-07

Figure 23: Personal incidence of drinking RTD iced tea and household incidence of using tea bags and loose tea, by age, May 2006-June 2007

Energy drinks and sports drinks continue to rise in popularity

Figure 24: Personal incidence and frequency of using energy and sports drinks, 2003-07

Figure 25: Personal incidence of drinking energy drinks and thirst quenchers, by age, May 2006-June 2007

THE PEOPLE: KID AND TEEN USAGE

Key points

Households with children use more regular soda while those without children are more likely to favor diet drinks

Figure 26: Personal incidence and frequency of drinking soda, by presence of children in household, May 2006- June 2007

Households with children use more milk and fruit juice, but those without children are more likely to use vegetable juice

Figure 27: Household incidence and frequency of milk and juice usage, by presence of children in household,

May 2006-June 2007

Households with children drink more bottled water and sparkling water beverages

Figure 28: Personal incidence and frequency of drinking bottled water, by presence of children in household, May 2006-June 2007

Juice among kids is stable, use of soda and thirst quencher is on the decline

Figure 29: Trended beverage use of kids aged 6-11, 2003-07

Teenage soda use expected to decline while use of energy drinks, bottled water and functional beverages is likely to increase

Figure 30: Personal incidence of non-alcoholic beverage use among teens, 2003-07

Teenage girls are heavier users of diet soda and bottled water, while boys help drive demand for energy drinks

Figure 31: Beverage use by teenagers 12-17, by gender, May 2006-June 2007

Hispanic teenagers are heavy users of regular cola, energy drinks and bottled water

Figure 32: Beverage use by teenagers 12-17, by race/ethnicity, May 2006-June 2007

RACE AND ETHNICITY

Key points

Black and Hispanics are key soda, sports drinks, and energy drinks consumers

Figure 33: Personal incidence of drinking soda, energy and thirst quencher, by race/ethnicity, May 2006-June 2007

Figure 34: Household incidence of using powdered soft drinks, by race/ethnicity, May 2006-June 2007

Minorities are somewhat more likely to suffer from lactose intolerance and more likely to use soy and lactose-free as well as whole milk

Figure 35: Milk usage, by race/ethnicity, May 2006-June 2007

Minorities more likely to drink refrigerated fruit juice, and whites are somewhat more likely to drink vegetable juice

Figure 36: Fruit juice usage, by race/ethnicity, May 2006-June 2007

Minorities more likely to drink instant coffee and RTD coffee drinks while whites are more likely to use whole bean gourmet coffee

Figure 37: Household incidence of using coffee, by race/ethnicity, May 2006-June 2007

Figure 38: Personal incidence of drinking RTD coffee, by race/ethnicity, May 2006-June 2007

Tea

Figure 39: Tea usage, by race/ethnicity and sub-category, May 2006-June 2007

THE PEOPLE: BEVERAGE PURCHASE DECISION DRIVERS

Key points

Health, price and brand are critical drivers in beverage decisions

Figure 40: Factors that “usually” drive beverage decisions, by age, March 2008

Asians are more price conscious while whites are more likely to watch their waistlines, and blacks seek portion control packaging

Figure 41: Factors that “usually” drive beverage decisions, by race/ethnicity, March 2008

Perceptions of diet beverages

Figure 42: Opinions about artificial sweeteners, by income, March 2008

THE PEOPLE: HOW BEVERAGES ARE PERCEIVED AND EVALUATED

Key points

Health-related beverage rankings

Consumers consider plain bottled water as the healthiest beverage option

Figure 43: Beverages perceived as most healthy (soda, energy, water, juice grouping), by income, March 2008

Figure 44: Beverages perceived as most healthy (milks and functional drinks), by income, March 2008

“Least healthy” beverage ranking

Figure 45: Beverages perceived as least healthy (soda, energy, water, juice grouping), by household income, March 2008

Figure 46: Beverages perceived as least healthy (milks and functional drinks), by household income, March 2008

“Most calories” beverage ranking

Figure 47: Beverages perceived as having the most calories (soda, energy, water, juice grouping), by income, March 2008

Figure 48: Beverages perceived as having the most calories (milks and functional drinks), by income, March 2008

Most convenient nutrition beverage ranking

Figure 49: Beverages perceived as providing the most convenient nutrition (soda, energy, water, juice grouping), by income, March 2008

Figure 50: Beverages perceived as providing the most convenient nutrition (milks and functional drinks), by income, March 2008

Fits lifestyle goals

Figure 51: Beverages perceived as the best fit with lifestyle goals such as maintaining stamina (soda, energy, water, juice grouping), by income, March 2008

Figure 52: Beverages perceived as the best fit with lifestyle goals such as maintaining stamina (milks and functional drinks), by income, March 2008

Thirst quenching

Figure 53: Beverages perceived as being the best thirst quenchers (soda, energy, water, juice grouping), by income, March 2008

Figure 54: Beverages perceived as being the best thirst quenchers (milks and functional drinks), by income, March 2008

Energy

Figure 55: Beverages perceived as providing the most energy (soda, energy, water, juice grouping), by income, March 2008

Figure 56: Beverages perceived as providing the most energy (milks and functional drinks), by income, March 2008

Has the most exciting advertising

Figure 57: Beverages perceived as having the most exciting advertising (soda, energy, water, juice grouping), by income, March 2008

Figure 58: Beverages perceived as having the most exciting advertising (milks and functional drinks), by income, March 2008

THE PEOPLE: RETAIL CHANNEL USE AND WHERE BEVERAGES ARE CONSUMED

Key points

Figure 59: Channels where non-alcoholic beverages have been bought in the past week, by age, March 2008

Figure 60: Channels where non-alcoholic beverages have been bought in the past week, by income, March 2008

At home consumption

Figure 61: Beverages purchased for at home consumption in past month, by age, March 2008

Immediate consumption

Figure 62: Beverages purchased for immediate consumption in the past month, by age, March 2008

Figure 63: Proportion of beverages purchased for immediate consumption in past month, by income, March 2008

APPENDIX: COHORT DEFINITION

Figure 64: Married couples cohorts

Figure 65: Single women cohorts

Figure 66: Single men cohorts

APPENDIX: OTHER USEFUL CONSUMER TABLES

Decision-making drivers

Figure 67: Factors that “usually” drive beverage decisions, by gender, March 2008

Figure 68: Factors that “usually” drive beverage decisions, by household income, March 2008

Figure 69: Detailed tables of responses to decision-making criteria questions, by age, March 2008

Figure 70: Detailed tables of responses to decision-making criteria questions, by age, March 2008

APPENDIX: TRADE ASSOCIATIONS

Abstract

• How shifts in the demographic composition of the U.S. are shaping the future of the beverage market
• Which demographic groups have helped drive growth and innovation of specific categories such as bottled water and energy drinks
• Trends in use of various beverages including soda, milk, juice and energy drinks, and how likely usage will increase or decrease in the future
• Which groups are especially heavy consumers of soda, bottled water, energy drinks, milks and other beverages, and how should marketers and product developers target these groups
• How usage varies between race/ethnicity and age segments, and what groups are of particular high value to soft drink, juice and other beverage manufacturers
• Where people typically shop for and purchase beverages
• The proportion of consumers that purchase beverages for immediate consumption and those that purchase beverages for at home consumption
• What decision-making criteria have the most influence on beverage purchase decisions
• How consumers define the healthiness of various beverages

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