What you need to know

While the recent recession has impacted the way millions of Americans live and shop, most are creatures of habit who rarely make major changes to their beverage consumption routines.

However, it is also evident that many consumers have weight loss and other health-related aspirations that are driving them to consider their consumption patterns and experiment with beverages that can help them achieve their goals. Many are also making extra efforts to find bargains on their favorite beverages and, more generally, reduce household expenditures. In this highly competitive environment, it is especially important for beverage manufacturers as well as retailers to examine the attitudes and behavioral patterns of beverage users to ensure that messaging and product development efforts are in line with consumer preferences. Mintel has prepared this report, which addresses the following nonalcoholic beverage (NAB) market issues:

  • How are macro-economic factors impacting the way consumers shop for beverages?

  • How are health and wellness aspirations influencing the way that consumers shop?

  • What types of beverage are being launched within various channels including supermarkets, drug stores, and department stores?

  • How has the incidence and frequency of use, by beverage category, fluctuated in recent years among adults, teens, and kids?

  • Which segments of the population tend to be most receptive to new flavors and positioning and which are the least receptive?

  • Which consumer segments tend to be most responsive to marketing efforts and which are more likely to simply ignore ads?

Definition

This report builds on the analysis presented in Mintel’s Nonalcoholic Beverages: The Consumer—U.S., March 2010; May 2008; August 2006; and August 2004 as well as Mintel’s Nonalcoholic Beverages: The Market—U.S., April 2010; April 2009; April 2008; July 2006; and July 2004. The report also draws analysis from Mintel’s Nonalcoholic Beverages: A Retail Perspective—U.S., March 2009.

For the purposes of this report, the following nonalcoholic drinks have been included:

  • Carbonated soft drinks (CSD), including cola and non-cola, regular and diet

  • Bottled water

  • Coffee, including ground/whole bean, instant/freeze-dried, international flavored instant, ready-to-drink (RTD), and espresso/cappuccino

  • Tea, including RTD, refrigerated, bagged, loose, and instant

  • Thirst quenchers and sports/activity drinks such as Gatorade or PowerAde

  • Energy drinks such as Red Bull

  • Sparkling water, seltzer, and natural sodas such as Mistic, Orangina, and San Pellegrino

  • Milk, including low-fat/skim, whole, chocolate/other flavored, buttermilk, organic, and soy

  • Fruit juice and juice drinks

  • Instant hot cocoa mix

  • Powdered soft drinks such as Kool-Aid and Country Time, sweetened and unsweetened.

Value figures throughout this report are at retail selling prices (rsp) excluding sales tax unless otherwise stated.

Data sources

Sales data

  • Retail Channels section: Mintel/based on SymphonyIRI Group InfoScan® Reviews

Consumer survey data

For the purposes of this report, Mintel commissioned exclusive consumer research through Toluna USA to explore consumer purchasing patterns of and attitudes and behaviors regarding nonalcoholic beverages. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in January 2011 among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents so that they are proportionally balanced to the entire U.S. adult population (18+) based on the key demographics of gender, age, household income, and region. Mintel also slightly oversamples, relative to the population, respondents that are Hispanic or black to ensure an adequate representation of these groups in our survey results. Please note that our surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in our survey results.

For the purposes of this report, Mintel has also analyzed data from Experian Consumer Research, using the Experian Simmons National Consumer Survey (NCS), the Experian Simmons National Hispanic Consumer Survey (NHCS), the Experian Simmons Teen Survey, and the Experian Simmons Kids Survey.

The NCS/NHCS Spring 2010 Adult Full Year survey was carried out during April 2009-June 2010 and the results are based on the sample of 23,572 adults aged 18+, with results weighted to represent the U.S. adult population. The Experian Simmons Summer 2010 Adult Full Year survey was carried out during July 2009-September 2010 and the results are based on the sample of 23,656 adults aged 18+.

The Experian Simmons Teen Survey was conducted during April 2009-June 2010 and based on a sample of 1,847 teenagers aged 12-17, with results weighted to represent the U.S. teen population.

The Experian Simmons Kids Survey was conducted during April 2009-June 2010 and based on a sample of 1,986 kids aged 6-11, with results weighted to represent the U.S. kid population.

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (white, black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

Abbreviations and terms

Abbreviations

The following abbreviations are used in this report:

BFY Better-for-you
BOGO Buy-one, get-one
BLS Bureau of Labor Statistics
CDC Centers for Disease Control and Prevention
CPI Consumer price index
EIA Energy Information Administration
FDA Food and Drug Administration
FDMx Food, drug, and mass merchandisers (excluding Walmart)
: :
: :

Terms

Generations are discussed within this report, and they are defined as:

World War II The generation born in 1932 or before. In 2011, members of this generation are aged 79 or older.
Swing Generation The generation born between 1933 and 1945. In 2011, members of the Swing generation are between the ages of 66 and 78.
Baby Boomers The generation born between 1946 and 1964. In 2011, Baby Boomers are between the ages of 47 and 65.
Generation X The generation born between 1965 and 1976. In 2011, Generation Xers are between the ages of 35 and 46.
Millennials* The generation born between 1977 and 1994. In 2011, Millennials are between the ages of 17 and 34.
Matrix Generation** The generation born from 1995 to present. In 2011, Matrices are aged 16 or younger.

* also known as Generation Y or Echo Boomers

** previously known as Post-Millennials

In order to provide an inflation-adjusted price value for markets Mintel uses the CPI to deflate current prices. The CPI is defined as follows:

CPI The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.



The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer’s dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates.



The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars.



Based on Bureau of Labor Statistics definition.
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