What you need to know

As a population, Hispanics skew younger than the average and live in larger households, which creates a dynamic conducive to purchasing a wider variety of beverages for the household. Hispanics consider their families’ preferences when deciding what to buy, so brands that can reach Hispanics in relevant ways may find brand advocates to champion their products at home. Hispanics don’t follow mainstream trends around wellness and BFY beverages. Instead, they decide based on flavor, price and family experiences. Brands that can enhance experiences through flavor may be in a good position to grow their Hispanic following.

Key issues covered in this Report

  • The impact of COVID-19 on Hispanics’ consumption of non-alcoholic beverages

  • How drinking occasions determine impact beverage consumption

  • The importance of brand in Hispanics’ purchase decisions and the key factors that define a meaningful brand

  • Why general market trends guiding product innovation may not resonate with Hispanics

Definition

This Report evaluates Hispanics’ attitudes and consumption of non-alcoholic beverages, with emphasis on CSDs (carbonated soft drinks) and juice/juice drinks.

This Report builds upon Mintel’s Hispanics and Non-Alcoholic Beverages – US, December 2017. Readers may also be interested in Mintel’s Black Consumers: Non-Alcoholic Beverages – CSDs and Juice/Juice Drinks – US, May 2021 and other Reports in the food and drink as well as the multicultural libraries.

Market context

The pandemic impacted non-alcoholic beverages indirectly by shifting most consumption home due to stay-at-home measures. Categories such as roasted coffee, bagged tea, juice, dairy milk and bottled water that were stagnant or declining benefited from the behavioral change. Increases in Hispanics’ purchases of non-alcoholic drinks are the results of changes in habits rather than stockpiling. In the reemergence phase, life is still far from ordinary. Even when Hispanics are back on the road commuting to work, they are hesitant to make purchases in foodservice locations and are spacing out their visits to convenience stores.

This Report was written in January 2021. Consumer research was fielded in January 2021 and thus reflects consumer attitudes in the pandemic environment.

Economic and other assumptions

Mintel’s economic assumptions are based on CBO estimates released on February 1, 2021. The CBO’s previous forecast for US GDP to fall by 5.8% in 2020 was revised after a stronger second half of the year, and the updated estimate indicates negative 3.5% GDP for the year. The CBO forecasts GDP to grow by 4.6% in 2021 and projects unemployment to continue to fall, to average 5.7% for the year.

COVID-19: US context

The first COVID-19 case was confirmed in the US in January 2020. It was declared a global health pandemic and national emergency in early March 2020. Across the US, various stay-at-home orders were put in place in Spring 2020, and nonessential businesses and school districts closed or shifted to remote operations. The remainder of 2020 saw rolling orders, as states and local governments relaxed and reinforced guidelines according to the spread of the virus in each region.

Vaccine distribution began in December 2020, and it is expected take until anywhere from July to December 2021 for 70-90% of the population to be vaccinated to reach herd immunity. Mintel anticipates business operations in the US will remain in a state of flux through 2021 as the vaccine is widely administered.

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