Table of Contents
Executive Summary
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- Market overview
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- Figure 1: Ready-to-drink non-alcoholic beverage category product launches, by type, 2015-2019*
- The issues
- Shopping behavior changes will impact packaging choice
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- Figure 2: Consumer behavior changes, June 11- 24, 2020
- Consumers seek the essentials, not the details from packaging
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- Figure 3: Important beverage packaging features, April 2020
- Plastic is enduring
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- Figure 4: Non-Alcoholic ready-to-drink beverage launches by packaging material, 2015-2019*
- The opportunities
- Packaging is essential to peace of mind for many
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- Figure 5: Product packaging concerns, June 11-24, 2020 (US)
- Nutritional information has broadest consumer appeal
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- Figure 6: Packaging features motivating trial, April 2020
- Gen Z will demand more sustainable packaging
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- Figure 7: Change in environmental priority by generation, June 11-24, 2020
The Impact of COVID-19 on Beverage Packaging
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- Figure 8: Short-, medium- and long-term impact of COVID-19 on beverage packaging, June 2020
- Opportunities and Threats
- COVID-19 will shift growth in the complex non-alcoholic beverage market
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- Figure 9: Total US retail sales of non-alcoholic beverages, by segment, 2017 and 2019
- Shopping behavior changes will impact packaging choice
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- Figure 10: Consumer behavior changes, June 11- 24, 2020
- Plastic stages a comeback… for now
- Packaging changes can satisfy consumers working from home
- Retailers will need build trust by communicating safety procedures
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- Figure 11: Grocery shopping concerns, June 11-24, 2020
- Nearly a third of consumers are ripe for DTC programs
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- Figure 12: Grocery shopping concerns, June 11-24, 2020
- How the crisis will affect key consumer segments
- Parents take an active role in keeping food and drink products safe
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- Figure 13: Grocery shopping concerns by parent status, June 11-24, 2020
- Gen Z will demand more sustainable packaging
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- Figure 14: Change in environmental priority by generation, June 11-24, 2020
- How a COVID-19 recession will reshape beverage packaging
- Packaging will need to provide consumers value
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- Figure 15: Unemployment – recession versus pandemic, December 2007-May 2009 and December 2018-May 2020
- COVID-19: US context
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The Market – What You Need to Know
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- Traditional channels still draw all drinkers
- Packaging is an important tool for beverage launch
- No stopping plastic
- Product claims are ubiquitous
Market Breakdown
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- Drink type coupled with channel choice should direct packaging strategies
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- Figure 16: Beverage purchase locations, by category April 2020
- Grocery, mass dominate with leading categories
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- Figure 17: Purchase locations by beverage categories, largest beverage categories, by sales, April 2020
- Caloric and impulsive beverages also popular in convenience channels
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- Figure 18: Purchase locations by beverage categories, top categories for purchase in convenience and vending, April 2020
Market Perspective
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- Pandemic reinforces the importance of packaging
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- Figure 19: Packaging attitudes and behaviors, US COVID-19 Impact Tracker, June 11-24, 2020
Market Factors
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- Beverage launch activity is not linked to category growth
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- Figure 20: Percent of ready-to-drink non-alcoholic beverage category product launches, by category, 2015-2019*
- Packaging launches point to more beverage industry renovation than innovation
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- Figure 21: Ready-to-drink non-alcoholic beverage category product launches, by type, 2015-2019*
- Persistence of plastic
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- Figure 22: Ready-to-drink non-alcoholic product launches, by packaging material and type, 2015-2019*
- Packaging materials trends follow the fortunes of categories
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- Figure 23: Ready-to-drink non-alcoholic beverage launches, by material, select categories, 2015-2019*
- Plastic “backlash” has had little effect
- Beverage packaging more recycled than other types
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- Figure 24: Percentage of generated material that gets collected for recycling in municipal solid waste, by material, 2015-2017
- But consumer commitment to recycling and change is low
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- Figure 25: Consumer attitudes about beverage packaging types, April 2020
- Consumers will accept rather than demand alternatives to plastic
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- Figure 26: Consumer interest in types of soda packaging, February 2020
- Claims proliferate and clutter beverage packaging
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- Figure 27: Ready-to-drink non-alcoholic beverage launches, by label claim categories, 2015-2019*
- Sustainability claims are plentiful, watered down
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- Figure 28: Ready-to-drink non-alcoholic beverage launch claims, by beverage packaging type and material, 2015-2019*
- Consumers believe in recycling claims and don’t differentiate among materials
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- Figure 29: Consumer attitudes about beverage packaging types, April 2020
What’s Working
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- Smaller sizes mitigate health concerns
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- Figure 30: Slimline can launches as a percent of all launches in cans, by category, 2015-2019
- Branded beverage launches rebound from recent dip
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- Figure 31: Branded products as percentage of ready-to-drink non-alcoholic beverage launches by category, 2017-2019*
- Tastes shift to smaller high growth segments
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- Figure 32: Percent of ready-to-drink non-alcoholic beverage launches for top 4 subcategories, 2015-2019*
What’s Struggling
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- Plain water is staying outside the box
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- Figure 33: Environmentally friendly associations with packaging types, by age, April 2020
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- Figure 34: Consumer perceptions of plain water launches in cartons and PET bottles, 2017-2019*
- Pouches can’t break associations with kid products
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- Figure 35: Packaging type perceptions – pouches, plastic and aluminum, April 2020
- Recycling alone will not support brand commitments to reduce waste
What to Watch
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- Price concerns will benefit plastic bottles
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- Figure 36: Top two box consumer attribute ratings for CSD products, by packaging types,* January 2017 – December 2019
- Aluminum leaps a barrier
- Here’s to good health
- Coffee returns to a different can
The Consumer – What You Need to Know
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- Declining categories maintain highest penetration
- Consumers pursue variety
- Consumers attend most to practical packaging features
- Packaging can turn the switch
- Consumers don’t make fine distinctions among packaging types
- Consumers check nutrition facts and multipacks
- Action on sustainability is limited
- Consumers want to know what’s in the drink, not a whole story
Non-alcoholic Beverage Consumption
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- Types of beverages consumed
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- Figure 37: Beverages purchased, April 2020
- Figure 38: Beverages purchased, by age, April 2020
- Diverse usage is the norm
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- Figure 39: Repertoire of beverages purchased, by age, April 2020
Important Beverage Packaging Features
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- Practical features are table stakes for beverage manufacturers
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- Figure 40: Important beverage packaging features, April 2020
- Moderate consumer interest in sustainability can matter on the margin
- Package design is for the young
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- Figure 41: Important beverage packaging features, by age, April 2020
- Attention to sustainability is consistent by age, and more prevalent among Hispanic consumers
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- Figure 42: Important beverage packaging features, by age, April 2020
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- Figure 43: Beverage packaging features, by Hispanic origin, April 2020
- Packaging features have some power to motivate trial
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- Figure 44: Packaging features motivating trial, April 2020
- Older heads are hardest to turn
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- Figure 45: Packaging features motivating trial, by age, April 2020
- Top three features together have substantial reach
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- Figure 46: TURF analysis – changes in purchase behavior, April 2020
Consumer Perceptions of Packaging Types
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- Consumers don’t see big differences among packaging types
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- Figure 47: Perceptions of beverage packaging, April 2020
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- Figure 48: Perceptions of beverage packaging, April 2020
- Sharp distinctions for glass
- Value of product integrity is crucial in uncertain times
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- Figure 49: Correspondence analysis – symmetrical map – beverage packaging perceptions, April 2020
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- Figure 50: Beverage packaging perceptions, April 2020
Attitudes and Behaviors with Beverage Purchase
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- Nutrition information and multipacks have widest interest
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- Figure 51: Beverage purchase attitudes and behaviors, April 2020
- Few consumers act on sustainability
- Environmental consciousness differs by age
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- Figure 52: Beverage purchaser habits, by age, April 2020
- Brand stories are expendable
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- Figure 53: Least desirable label information, April 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 54: Total US retail sales of non-alcoholic beverages, by segment, 2017 and 2019
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