The U.S. Market for Kids Foods and Beverages - 5th Edition

Published by: Packaged Facts

Published: Jun. 1, 2003 - 268 Pages

Table of Contents

• Simmons Market Research Bureau
  
• Information Resources, Inc.
  
• CMR/TNS

Chapter 2: Population Trends Among Children Ages 5 to 14

Census 2000 Found Some Surprises

Table 2-1: Current and Projected Populations of Children Ages 5 to 14, Total and by Ethnicity/Race

Projected Growth to 2010

America’s Children are Increasingly Diverse

Table 2-2: Distribution of Children Ages 5 to 14 by Race and Ethnicity

Table 2-3: Projected Growth of Children Ages 5-14, Overall and by Race/Ethnicity, 2000-2010

Table 2-4: Projected Growth of Children Ages 5-9, Overall and by Race/Ethnicity, 2000-2010

Table 2-5: Projected Growth of Children Ages 10-14, Overall and by Race/Ethnicity, 2000-2010

Traditional Families No Longer the Norm

Figure 2-1: Hispanics, Asians Favor Traditional Families

Table 2-6: Household Type as Share of all Households by Race, Ethnicity, 2002

Household Size Influences Food Spending

Table 2-7: Household Size and Spending on Food, 2000, 2+ Person Household

Table 2-8: Weekly Median Food Spending Per Person by Household Composition

Food Spending Varies by Race, Ethnicity

Income is Highest Among Asians, Lowest Among Blacks

Table 2-9: Median Incomes are Highest Among Asian Households

Chapter 3: The Overall Market

The Overall Market

Assumption Regarding Sales Volume

Table 3-1: Estimated U.S. Supermarket Sales of Kids' Foods and Beverages, 1998 to 2007

The Top 10 Firms Control Nearly Three-Quarters of the Market

Table 3-2: Annual Sales of Top 10 Manufacturers of Kids' Food, Beverages

Table 3-3: Top Market Share of Kids’ Food and Beverage Market, 1998-2002

Figure 3-1: Top 10 Marketer Share of the U.S. Kids' Food & Beverage Market

Sales of Kids’ Food and Beverages by Category

Figure 3-2: Share of Kids' Food & Beverage Market by Category

Table 3-4: U.S. Kids’ Food and Beverage Market Segment Share, 1998 & 2002

Table 3-5: Kids’ Food and Beverage Sales by Category

Table 3-6: Kids’ Food and Beverage Market Volume and Growth by Category, 1998 -2002

Table 3-7: Kids’ Food and Beverage Market Projected Category Volume and Growth, 2002-2007

Market Drivers

Kids Food Marketers - Corporate Profiles

Apple & Eve, LLP

Aurora Foods

Cadbury Schweppes

Campbell Soup

Chiquita

Coca-Cola/The Minute Maid Company

ConAgra Foods, Inc.

Crazy Cow Sparkling Milk Company

The Dannon Company, Inc.

General Mills, Inc.

H.J. Heinz

Hershey Food Corp.

J.M. Smucker Co.

Kraft Foods, Inc.

Kellogg Company

Nestle USA

PepsiCo. Inc.

Procter & Gamble

Chapter 4: Desserts and Sweet Snacks

Figure 4-1: Overall Sales Shares, by Product Type, within the Desserts & Sweet Snacks Category

Table 4-1: Desserts and Sweet Snacks Sales by Category Segment

Bakery Snacks

Figure 4-2: Share of Bakery Snack Sales by Segment

Cookies

Table 4-2: Use of Cookies, Overall and Households with Kids

Table 4-3: Use of Cookies, by Brand, Overall and Households with Kids

Table 4-4: Use of Cookies, by Brand and Type, Overall and Households with Children

Figure 4-3: Marketer Share of Cookie Sales, 2002

Table 4-5: Sales of Cookies, by Brand, 2002

Cupcakes and Snack Cakes

Figure 4-4: Marketer Shares of Snack Cake/Cupcake Sales, 2002

Table 4-6: Use of Snack Cakes, Overall and Households with Children

Toaster Pastries

Figure 4-5: Share of Toaster Pastry Segment, by Marketer, 2002

Table 4-7: Use of Toaster Pastries, Overall and Higher in Households with Children

Granola Bars

Figure 4-6: Share of Granola / Cereal Bar Segment by Marketer

Table 4-8: Sales of Kids' Granola & Cereal Bars, 2002

Table 4-9: Use of Granola / Cereal Bars, Overall and Households with Children

Refrigerated Cookie & Brownie Dough

Figure 4-7: Marketer Share of Refrigerated Cookie Dough Segment, 2002

Table 4-10: Refrigerated Cookie Dough Sales, by Marketer, 2002

Table 4-11: Use of Cookie & Brownie Dough, Overall and Households with Children

Graham Crackers

Figure 4-8: Marketer Share of Graham Cracker Sales, 2002

Packaged Donuts and Muffins

Figure 4-9: Marketer Share of Packaged Donut Sales, 2002

Baking Mixes

Total Bakery Snacks Segment

Figure 4-10: Marketer Share of Bakery Snack Sales, 2002

Table 4-12: Bakery Snack Sales by Segment, 1998-2002

Yogurt, Gelatin & Pudding Snacks

Table 4-13: Yogurt, Gelatin & Pudding Desserts& Snacks Sales, 1998-2002

Refrigerated Pudding Snacks

Figure 4-11: Marketer Share of Refrigerated Pudding & Yogurt Sales, 2002

Table 4-14: Use of Pudding, Overall and Households with Children

Table 4-15: Use of Pudding Brands, Overall and Households with Children

Yogurt

Table 4-16: Refrigerated Yogurt Sales by Manufacturer, 1998-2002

Figure 4-12: Marketer Share of Yogurt Sales, 2002

Table 4-17: Use of Refrigerated Yogurt, Overall and Households with Children

Table 4-18: Yogurt Brands Eaten Most Often, Overall and Households with Children

Table 4-19: Refrigerated Yogurt Number of Cups Eaten in Last 30 Days, Overall and Households with Children

Shelf Stable Gelatin & Pudding Snacks

Table 4-20: Shelf Stable Gelatin & Pudding Snack Sales by Manufacturer, 1998-2002

Figure 4-13: Marketer Share Gelatin & Pudding Snack Sales, 2002

Table 4-21: Use of Gelatin Desserts, Overall and Households with Children

Table 4-22: Flavored Gelatin Dessert Brands Used, Overall and Households with Children

Go-Gurt Spurs Tube Trend

Packaged Facts Estimates Tube Food Sales at $176.2 million to $211 million

Excluding Go-Gurt, Ad Spending for Tube Foods is Limited

Gelatin Mixes

Figure 4-14: Share of the Yogurt, Pudding & Gelatin Desserts & Snacks Sales, by Marketer, 2002

Fruit Snacks

• Fruit Rolls, Bars and Snacks
  
• Figure 4-15: Marketer Share of Fruit Snack Sales, 2002
  
• Fruit Cups

Chapter 5: Meals and Meal Components

Figure 5-1: Share, by Category, of the Meals & Meal Components Segment

Table 5-1: Meals and Meal Components Sales by Category Segment, 1998-2002

Breakfast Items

Table 5-2: Breakfast Food Use by Households with Kids

Breakfast Cereal

Figure 5-2: Sales Share of Breakfast Segment Categories

Table 5-3: Kids' Breakfast Item Sales, 1998-2002

Table 5-4: Breakfast Cereal Usage by Households with Children

Table 5-5: Breakfast Cereal Brands Used By Households with Children

Frozen Breakfast Items

Table 5-6: Household Usage of Frozen Breakfast Items

Breakfast Syrup

Margarine Spreads

Lunch Items

Figure 5-3: Kids' Lunch Sales by Product Segment

Table 5-7: Kids' Lunch Item Sales

Refrigerated Lunch Kits

Table 5-8: Households Use of Prepared Lunch Kits

Peanut Butter

Table 5-9: Peanut Butter Usage in Households with Kids

Figure 5-4: Share of Peanut Butter Segment by Brand

Bread 113

Table 5-10: Use of Bread Brands in Households With Kids

Packaged Cheese Slices

Dinner Items

Figure 5-5: Share of Kids' Dinner Item Sales by Category

Table 5-11: Kids' Dinner Item Sales, 1998-2002

Frozen Pizza

Figure 5-6: Share of Frozen Pizza Sales by Manufacturer

Table 5-12: Frozen Pizza Usage in Households with Kids

Frozen Entrees & Handheld Sandwiches

Macaroni & Cheese Mixes

Table 5-13: Use of Macaroni & Cheese Mixes in Households with Children

Shelf Stable Dinners

Table 5-14: Microwaveable Dinner in Households with Kids

Frozen Potatoes

Table 5-15: Frozen Potato Products Use in Households with Kids

Ketchup

Table 5-16: Ketchup Usage

Top 10 Manufacturers of Kids’ Meals and Meal Components

Volume Projections

Table 5-17: Top 10 Manufacturers of Kids' Meals and Meal Components, 2002 Sales

Figure 5-7: Top 10 Manufacturers' Share of Kids' Meal & and Meal Component Sales

Chapter 6: Candy

Table 6-1: Retail Sales of Kids’ Candy, 1998-2002

How We Arrived At Our Sales Estimates

Non-Chocolate Candy

Figure 6-1: Non-Chocolate Candy Sales by Type

Table 6-2: Non-Chocolate Candy Sales by Segment, 1998-2002

Chocolate Candy

Figure 6-2: Share of Kids' Chocolate Candy Sales by Segment

Table 6-3: Chocolate Candy Sales by Segment, 1998-2002

Candy Usage is Higher in Households with Kids

Table 6-4: Candy Consumption in Households with Children

Table 6-5: Consumption of Chocolate Candy Brands in Households with Children

Table 6-6: Consumption of Non-Chocolate Candy in Households with Children

Advertising Support

Robust New Product Activity in Candy

Two New Product Trends: Healthy and Hispanic

Licensing/Co Branding

The Wal-Mart Factor

Five Manufacturers Control 63% of the Kids’ Candy Market

Figure 6-3: Marketer Share of Kids’ Candy Sales

Table 6-7: Total Retail Sales of Candy, by Major Marketers, 1998-2002

Projected Growth

Chapter 7: Savory Snacks

Table 7-1: The Top Five Favorite Snacks of Kids and Teens

Figure 7-1: Savory Snack Sales by Segment

Salty Snacks

Table 7-2: Savory Snack Sales by Segment

Advertising Spending

Two Manufacturers Control Almost 87% of Salty Snack Sales

Table 7-3: Salty Snack Sales by Manufacturer, 1998-2002

Crackers

Table 7-4: Cracker Sales by Manufacturer, 1998-2002

Table 7-5: Types and Brands of Crackers Used in Households with Children

Cracker Consumption is Higher Among Households With Kids

Table 7-6: Cracker Consumption in Households With Children

Table 7-7: Popular Cracker Brands in Households With Kids

Mom’s Buy Cracker Snack Packs for Kids

Table 7-8: The Top Five Single Serve Snacks Moms Buy For Children/Teens

Five Manufacturers Control the Bulk of Cracker Sales

Figure 7-2: Manufacturers’ Share of Cracker Sales

Frozen Appetizers & Snacks

Figure 7-3: Share of Frozen Snack Sales by Manufacturer

Table 7-9: Retail Sales of Frozen Snacks, 1998-2002

Table 7-10: Frozen Snack Sales by Manufacturer, 1998-2002

Advertising Spending

Popcorn

Table 7-11: Popcorn Sales by Manufacturer, 1998-2002

Popcorn Usage is Higher Among Households with Children

Table 7-12: Popcorn Use in Households With Children

Distribution of Sales by Manufacturer

Figure 7-4:Share of Popcorn Sales by Manufacturer

String Cheese and Cheese Snacks

Figure 7-5: Share of String/Snack Cheese Sales by Manufacturer

Table 7-13: Snack Cheese Sales by Manufacturer, 1998-2002

Top 10 Marketers Share of Savory Snacks Segment

Figure 7-6: Top Manufacturers’ Share of Savory Snack Sales

Table 7-14: Manufacturers Retail Sales of Savory Snacks, 1998-2002

Projections Going Forward

Chapter 8: Beverages

Figure 8-1: Sahre of Kids’ Bevrage Sales by Segment

Aseptic Juices & Drinks

Table 8-1: Aseptic Juice Sales by Manufacturer, 1998-2002

Usuage of Juices & Drinks, Particularly Aseptics, is Higher in Households with Kids

Table 8-2: Use of Fruit/Drink in Households with Children, by Form/Package

Table 8-3: Use of Fruit/Drink in Households with Children, by Type

Households with Children Have Above Average Use of Fruit Juices

Table 8-4: Use of Fruit/Drink by Brand, in Households with Children Have Above Average

Shelf Stable Bottled Fruit Juices & Drinks

Table 8-5: Sales of Kids’ Shelf Stable Juices & Drinks by Manufacturer, 1998-2002

Figure 8-2: The Top 5 Marketers Share of Shelf-Stable Fruit Juice Sales

Households With Kids’ Have Above Average Usage of Most Fruit Drink Brands

Table 8-6: Use of Fruit Drinks by Brand, in Households with Children

Household with Kids Drink More Juice

Table 8-7: Consumption of Juice in Households with Children

Packaged Dry Drinks Mixes

Households with Kids Have Above Average Use of Beverage Mixes

Table 8-8: Use of Powdered Soft Drinks in Households with Children

Table 8-9: Comsumption of Powered Soft Drinks in Households with Children

Refrigerated Fruit Drinks

Cocoa Mixes And Milk Flavorings

Table 8-10: Sales of Instant Cocoa Mixes and Milk Flavorings, 1998-2002

Households with Children Use More Milk Flavorings

Table 8-11 Use of Milk Flavorings in Households with Children

Cocoa Mixes Are More Popular Than Milk Flavorings

Table 8-12: Usage of Cocoa Mix in Households with Children

Flavored Milks and Milk Shakes

Figure 8-3: Refrigerated Flavored Milk & Shakes, Share of Sales by Manufacturer

Shelf Stable Non-Fruit Drinks

Figure 8-4: Share of Non-Fruit Beverage Sales by Manufacturer

Canned Juices and Drinks

Juice Drinks Concentrates

Bottled Water

Isotonic Beverages

Beverage Preferences of Tweens

Table 8-13: Favorite Beverages of Teens/Tweens, Girls and Boys

Summary of Performance by Form

Table 8-14: Beverage Sales Trends by Product Form, 1998-2002

Top 10 Manufacturers of Kids’ Beverages

Table 8-15: Top 10 Manufacturers of Kids’ Beverages 2002

Five Manufacturers Control 85% of Kids’ Beverage Sales

Figure 8-5: Share of Kids’ Beverage Sales by Manufacturer

Volume Projections Going Forward

Chapter 9: Trends in Advertising and Promotion

Advertising Spending

Children are Active Media Consumers

Table 9-1: Percentage of Children Ages 6 to 14 Having a Television, VCR of DVD in Their Room

The First Challenge is to Reach Kids; the Second is to Engage Them

What Makes Kids Tick

Connecting with Kids

Don’t Forget the Gatekeeper

Kids are Wise to Advertising

The Best Way to Reach Kids

Cable Rules with Kids

Kids’ Opinions About Advertising That Works

Sampling, Sweepstakes, Games, and Giveaways

Food as Toys, Toys as Food

Advergaming Targets Tweens

Potential for Backlash

Parental Attitudes Toward Advertising

Table 9-2: Media Attitudes of Parents

American Children are Active Consumers

Spending Power

Money of Their Own

Kids Exert the Most Influence in Grocery Stores

Table 9-3: Percent of Children Ages 8 to 17 Saying They Influence Household Purchases

“Kid-fluence” and Shopping - Parental Attitudes

Table 9-4: Children Influence Their Parents' Shopping Behavior

The Nag Factor

Chapter 10: Food Consumption Trends

Changing Food Patterns in America

Two-Thirds of American Women Are in the Labor Force

Mom’s Working and Nobody’s Cooking

Snacks Replace Meals

Family Meals Promote Healthy Eating

Changes in Nutrient Intake

Consumption of Added Sugars Continues to Rise

Figure 10-1: America's Changing Patterns of Sugar Consumption

The More Things Change…

Table 10-1: Percentages of Children with Diets Meeting 100% of the RDA

Nutrition Attitudes of Parents

Table 10-2: Attitudes Toward Nutrition Among Adults in Households With Kids

Main Meals Provide The Best Opportunity for Nutritional Improvement

Kids’ Food & Beverage Manufacturers Focus on Nutrition

Childhood Obesity on the Rise

Figure 10-2: Prevelance of Overweight Children, Ages 6 to 19

Activists Weigh In

Chapter 11: New Product Trends

Variety is the Spice of Life

Product Attributes

Table 11-1: The U.S. Kids' Food and Beverage Market Incidence of Selected Attributes In New Product Introductions, 2002

Packaging Plays a Critical Role in Kids’ Products

Innovation

Table 11-2: Kids' Food and Beverage Products Considered "Innovative," as a Share of Category Introductions and as a Share of all Innovative Products Introduced

Packaging Innovation

Formulation/Positioning Innovation

Variations on a Theme

Extreme Flavor Trends

Hispanic Flavor Trends

Top Flavor Trends

Color

Health Aspects of Kids Intros

Kids’ Products as Share of All Intros



Table 11-3: Introduction Trends: Kids' Food and Beverages, Introductions of Kids' Products Total Count, and as Share of all Food & Beverage Introductions

Product Introductions by Manufacturer

Key to Success

Table 11-4: Kids' Food and Beverage Introductions by Manufacturer, 2002

Chapter 12: Regulatory Considerations

Trans Fatty Acid Labeling

FDA Action Plan for Acrylamide in Food

Potential Health Claim for Omega-3 Fatty Acids

Biotechnology, Genetically Modified Food Ingredients

Organic Labeling

Food Allergens

Chapter 13: Trends and Opportunities

Population Shifts

Fractured Families

Nobody’s Cooking

Kids Wield Substantial Spending Power

Snacks Show the Most Promise

Convenience, Portability, Single Serve

Obesity, Health May Be The Biggest Wild Cards

Nutrition

Appendix: Addresses of Selected Marketers

Abstract

With estimated annual sales in excess of $27 billion in 2002, the U.S. kids’ food and beverage market is vast and complex, comprising five broad categories and 60 sub categories. The U.S. Market Kids’ Food and Beverages provides detailed analysis of product trends for Meals and Meal Components, Desserts & Sweet Snacks, Candy, Beverages, and Savory Snacks specifically targeting children 5 to 14 years of age. Further detail is provided on sub segments within each of the five major categories. The Beverage Category, for example, includes detailed analysis of such segments as aseptic juices and drinks, shelf stable bottled juices, drink mixes, and refrigerated flavored milks and shakes. The meals and meal components category includes such sub segments as shelf stable entrees, refrigerated lunch kits, peanut butter and frozen pizza. The report includes trended sales data and projections of future growth.

Report Methodology
The information in The U.S. Market for Kids’ Food and Beverages is based on both primary and secondary research. Primary research involved on-site examination of the retail milieu, interviews with marketing, public relations and industry analysts within the food and beverage market and consultants to the industry. Secondary research entailed data-gathering from relevant trade, business, and government sources, including company literature. Packaged Facts has derived mass merchandiser sales figures from Information Resources, Inc. (IRI) InfoScan sales-tracking data. Figures provided on national consumer advertising expenditures are based primarily on data (copyright 2002) compiled by CMR/TNS Media Intelligence U.S., the leading provider of strategic advertising and marketing communications intelligence. The analysis of consumer demographics derives from Simmons Market Research Bureau survey data for fall 2002. New product information is gathered via literature research, personal interviews and data compiled by ProductScan, a service of Marketing Intelligence Service Ltd.

The report presents key trends influencing new product development and the market factors that continue to shape the category, including the changing food and beverage consumption patterns of Americans, the increasingly active consumer role of children, the incidence of obesity, other health issues and parental concerns, and the evolving regulatory environment. Market shares of the top manufacturers within kids’ food and beverages overall, as well as each major category, are included. It also provides up-to-date competitive profiles of marketers of kids’ consummables - including a look at smaller, up-and-coming companies - and discusses the influence of demographic trends as a driver of retail trends. The report also offers readers trends and marketing opportunities within the kids’ food and beverage industry.

What You’ll Get in this Report
The U.S. Market for Kids’ Food and Beverages offers a unique perspective on the burgeoning market for youth foods and beverages. No other market research report provides both the comprehensive analysis and extensive data that The U.S. Market for Kids’ Food and Beverages offers. The report addresses the following segments:

• The Market (including market size and composition, and projected market growth)
• The Marketers (including discussions of specific marketer brand and market shares)
• Competitive Profiles (of the mainstream food and beverage marketers, specialists and up-and-coming niche players, and analyses of the products they market)
• Retail Strategies
• The Consumer (who’s buying what, and where)
• The Products
• Trends and Opportunities

Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

Scroll down to see a more detailed outline of the contents of this report.

About the Author
Janis Barbour has more than 20 years experience in business intelligence and market research. She has held a variety of corporate research positions, most recently as Manager, Market Intelligence at Nestlé USA, Inc. During her 15 years with Nestlé, Ms. Barbour was responsible for providing secondary research support for clients throughout the organization, including Nestlé’s Swiss parent company. She also researched, wrote and edited two quarterly newsletters on nutrition and consumer trends, and was an active member of various corporate teams and task forces focusing on marketing, health and wellness, foodservices, and new product development. Since leaving Nestlé in January 2003, Ms. Barbour has established an independent research service, Barbour Information Advantage, Inc.

New: Packaged Facts Update Service
Stay current on the kids’ food and beverage market for a full year after purchasing this report with the new Packaged Facts UPDATE service. Packaged Facts is pleased to offer the opportunity to receive two supplements to this valuable report, at 6 month and 1 year after it's initial publication date. These supplements, delivered to you electronically, will provide a comprehensive, mid-term look at the kids' food industry, with important updated information on sales, market share, consumer trends and attitudes, and industry developments. If you'd like to purchase these supplements, simply choose the "Hard Copy plus 2 6-month updates" or "Instant Online Delivery plus 2 6-month updates" purchase option.

How You Will Benefit from this Report
If your company is already competing in the youth food and beverage market, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for kids’ foods and drinks, as well as projected sales and trends through 2008. Contributing to that understanding will be a complete analysis of sales data from IRI and other published and trade sources, a detailed discussion of the consumer for youth food and beverage products based on Simmons data.

This report will help:

• Marketing Managers identify market opportunities and develop targeted promotion plans for kids’ food and beverages.
• Research and development professionals stay on top of competitor initiatives and explore demand for food and drink products designed for kids.
• Advertising agencies working with clients in the food and beverages industries understand the product buyer to develop messages and images that compel consumers to purchase these products.
• Business development executives understand the dynamics of the market and identify possible partnerships.
• Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

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