Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Market at a glance
- Factors influencing change
- Category momentum
- Coca-Cola and PepsiCo gain stronger foothold in the market
- Supermarkets lose market share to mass merchandisers
- Key consumer insights
- Consumption of functional beverages by type
- Key consumer groups
- Consumer views on functional ingredients
- Interest in new beverages
- The future of functional beverages
Market Drivers
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- Consumer quest for better health through food and beverages
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- Figure 1: Attitudes regarding healthy eating, 2002-06
- Increasing incidence of obesity—a growth driver
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- Figure 2: Percentage of population who are overweight or obese, 20-74 years of age, 1988-2004
- Functional beverages—convenient nutrition
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- Figure 3: Reasons for buying functional beverages, September 2006
- Enhanced/fortified beverages provide convenient and palatable delivery system for vitamins and minerals
- Functional ingredients and claims—addressing specific health problems—pique consumer interest
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- Figure 4: Role of functional ingredients in consumer purchase decisions, May 2007
- A boost of energy—a functional lifestyle choice
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- Figure 5: Purpose of drinking energy drinks, February 2007
- Demographic influences
- Women—more health-conscious than men
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- Figure 6: Health or lifestyle practices, by gender, May 2007
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- Figure 7: Functional beverages purchased for whom, by gender, May 2007
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- Figure 8: Population of women aged 18+, by age, 2002 and 2007
- Boomers drive growth
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- Figure 9: Population aged 18+, by age, 2002-12
- Inherent goodness of other beverages competes with functional drinks
Market Size and Trends
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- Market size
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- Figure 10: Total FDM* U.S. retail sales of functional beverages, at current and constant prices, 2002-07
- Wal-Mart estimate
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- Figure 11: Number of regular stores and supercenters opened by Wal-Mart, FY 2001-06
- Market trends
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- Figure 12: Number of functional beverage product introductions, 2002-07*
- Figure 13: New functional beverage product claims, 2002-07*
Market Segmentation
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- Figure 14: FDM* sales of functional beverages, segmented by type, 2005 and 2007
- Functional juice and juice drinks
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- Figure 15: FDM* sales of functional juice and juice drinks, at current and constant prices, 2002-07
- Enhanced water and sports drinks
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- Figure 16: FDM* sales of enhanced water and sports drinks, at current and constant prices, 2002-07
- Functional tea
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- Figure 17: FDM* sales of functional tea, at current and constant prices, 2002-07
- Functional smoothies and yogurt drinks
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- Figure 18: FDM* sales of functional smoothies and yogurt drinks, at current and constant prices, 2002-07
- Energy drinks
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- Figure 19: FDM* sales of energy drinks, at current and constant prices, 2002-07
- Functional soy and rice-based drinks
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- Figure 20: FDM* sales of functional soy and rice-based drinks, at current and constant prices, 2002-07
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Supply Structure
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- Top manufacturers push to gain momentum through acquisition of small but innovative companies
- PepsiCo
- Coca-Cola
- Overview of company and brand sales
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- Figure 21: FDM* sales of major manufacturers in the functional beverage market in the U.S., 2004 and 2006
- Functional juice and juice drinks
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- Figure 22: Selected brand sales and market share of functional juice and juice drinks at FDM* in the U.S., 2004 and 2006
- Enhanced water and sports drinks
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- Figure 23: Selected brand sales and market share of enhanced water and sports drinks at FDM* in the U.S., 2004 and 2006
- Energy drinks
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- Figure 24: Selected brand sales and market share of energy drinks at FDM* in the U.S., 2004 and 2006
- Functional tea
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- Figure 25: Selected brand sales and market share of functional tea at FDM* in the U.S., 2004 and 2006
- Functional smoothies and yogurt drinks
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- Figure 26: Selected brand sales and market share of functional smoothies and yogurt drinks at FDM* in the U.S., 2004 and 2006
- Functional soy and rice-based drinks
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- Figure 27: Selected brand sales and market share of functional soy and rice-based drinks at FDM* in the U.S., 2004 and 2006
Advertising and Promotion
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- Marketers raise online presence
- Coca-Cola Company
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- Figure 28: Minute Maid Heartwise and Minute Maid Active orange juice—TV ad, 2007
- WhiteWave Foods Company
- Silk Soymilk
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- Figure 29: Silk soymilk—TV ad, 2007
- General Mills
- Kraft Foods, Inc.
- Capri-Sun fruit juice
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- Figure 30: Capri-Sun fruit juice—TV ad, 2007
- Fruit2O
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- Figure 31: Fruit2O Relax and Fruit2O Immunity—TV ad, 2007
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- Figure 32: Fruit2O Energy and Fruit2O Hydration—TV ad, 2007
- PepsiCo
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- Figure 33: Propel Calcium flavored water—TV ad, 2007
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- Figure 34: SoBe Life flavoured water—TV ad, 2007
- Cadbury Schweppes
- Snapple
- Snapple Green tea
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- Figure 35: Snapple green tea—TV ad, 2007
- Red tea iced drink
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- Figure 36: Snapple Red Tea—TV ad, 2006
- Sunny Delight
- Parents and children
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- Figure 37: Sunny Delight—TV ad, 2006
- Danone
- Figure 38: DanActive drinking yogurt—TV ad, 2006
- Unilever
- Lipton Green Tea range
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- Figure 39: Lipton Green Tea—TV ad, 2006
- Ocean Spray
- Cranberry farmers: red & white
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- Figure 40: Ocean Spray fruit juice—TV ad, 2006
- Sun Sweet
- Plumsmart juice
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- Figure 41: Sunsweet Plumsmart Juice—TV ad, 2006
- Campbell’s Soup Company
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- Figure 42: Campbell’s V8 vegetable juice—TV ad, 2006
Retail Distribution
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- Introduction
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- Figure 43: FDM *sales of functional beverages, by channel, 2005 and 2007
- Supermarkets
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- Figure 44: U.S. supermarket sales of functional beverages, at current and constant prices, 2002-07
- Drug stores
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- Figure 45: Drug stores sales of functional beverages, at current and constant prices, 2002-07
- Mass merchandisers and other outlets
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- Figure 46: Mass merchandisers* sales of functional beverages, at current and constant prices, 2002-07
The Consumer—Usage
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- Overview
- Capsule summary
- Consumption of functional beverages by type
- Key consumer groups
- Consumer views on functional ingredients
- Interest in new beverages
- Where are functional beverages purchased?
- Who purchases functional beverages?
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- Figure 47: Incidence of purchasing functional foods or beverages in the past three months, by gender, May 2007
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- Figure 48: Incidence of purchasing functional foods or beverages in the past three months, by age, May 2007
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- Figure 49: Incidence of purchasing functional foods or beverages in the past three months, by race/ethnicity, May 2007
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- Figure 50: Incidence of purchasing functional foods or beverages in the past three months, by presence of children, May 2007
- Functional beverages purchased for whom?
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- Figure 51: Functional beverages purchased for whom, by gender, May 2007
- Choice of healthy lifestyle and consumption of functional food and beverages
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- Figure 52: Health and lifestyle practices and consumption of functional food and beverages, May 2007
- Healthy lifestyle followers
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- Figure 53: Health or lifestyle practices, by gender, May 2007
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- Figure 54: Health or lifestyle practices, by age, May 2007
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- Figure 55: Health or lifestyle practices, by race/ethnicity, May 2007
The Consumer—Attitude, Behavior and Choice of Retail Channels
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- Views on the effectiveness of functional beverages
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- Figure 56: Belief in the effectiveness of functional beverages, by age, May 2007
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- Figure 57: Belief in the effectiveness of functional beverages, by race/ethnicity, May 2007
- Type of functional beverages purchased
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- Figure 58: Functional beverages purchased in the past three months, by gender, May 2007
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- Figure 59: Functional beverages purchased in the past three months, by age, May 2007
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- Figure 60: Functional beverages purchased in the past three months, by race/ethnicity, May 2007
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- Figure 61: Functional beverages purchased in the past three months, by presence of children, May 2007
- The role of functional ingredients in consumer purchase decisions
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- Figure 62: Role of functional ingredients in functional beverage purchase decisions, May 2007
- Interest in new functional beverages
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- Figure 63: Interest in functional beverages types, by gender, May 2007
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- Figure 64: Interest in functional beverages types, by age, May 2007
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- Figure 65: Interest in functional beverages types, by race/ethnicity, May 2007
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- Figure 66: Interest in functional beverages types, by presence of children in household, May 2007
- Interest in functional beverages that fight hangovers
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- Figure 67: Interest in functional beverages to fight hangovers, by age, May 2007
- Choice of retail channels to functional beverages
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- Figure 68: Where functional beverages are bought, by age, May 2007
Future and Forecast
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- Future trends
- Blurring segments and hybrid beverages
- Soda moving into the functional realm
- Energy hybrids abound amid high growth in the energy segment
- Continuing quest for better health
- Demographic influences
- Hispanic consumers under-targeted
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- Figure 69: Population, by race and Hispanic origin, 2002-12
- Echo Boomers and Baby Boomers grow in importance
- Functional beverages targeted at women likely to be successful
- Functional beauty beverages on the radar
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- Figure 70: Interest in functional beverages types, by gender, May 2007
- Energy drinks targeted at women are likely to drive growth
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- Figure 71: Incidence of energy drinks consumption among females, 2002-06
- Entrance of big players will provide expansion in retail channels
- Market forecast
- Functional beverage market
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- Figure 72: Forecast of total U.S. FDM sales of functional beverages, at current and constant prices, 2007-12
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- Figure 73: Forecast of FDM sales of functional beverages, at current and constant prices, 2007-12
- Functional juice and juice drinks
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- Figure 74: Forecast of U.S. FDM sales of functional juice and juice drinks, at current and constant prices, 2007-12
- Enhanced water and sports drinks
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- Figure 75: Forecast of U.S. FDM sales of enhanced water and sports drinks, at current and constant prices, 2007-12
- Functional tea
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- Figure 76: Forecast of U.S. FDM sales of functional tea, at current and constant prices, 2007-12
- Functional smoothies and yogurt drinks
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- Figure 77: Forecast of U.S. FDM sales of functional smoothies and yogurt drinks, at current and constant prices, 2007-12
- Energy drinks
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- Figure 78: Forecast of U.S. FDM sales of energy drinks, at current and constant prices, 2007-12
- Functional soy and rice-based drinks
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- Figure 79: Forecast of U.S. FDM sales of functional soy and rice-based drinks, at current and constant prices, 2007-12
- Forecast factors
Appendix: Trade Associations
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