Table of Contents
Executive Summary
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- The issues
- Top categories struggle to grab consumer attention
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- Figure 1: Non-alcoholic beverage consumption, November 2015
- Beverage health, function second to taste/flavor
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- Figure 2: Preferred beverages attitudes and behaviors – Reasons for drinking preferred beverages, November 2015
- Expanding beverage selection can overwhelm, decrease product loyalty
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- Figure 3: Drinking attitudes and behaviors – Attitudes toward beverage availability, November 2015
- The opportunities
- Free offerings, taste, price influences new beverage trial
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- Figure 4: Drinking attitudes and behaviors – Preferred beverages, November 2015
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- Figure 5: Attributes that encourage new beverage trial, November 2015
- Leverage consumer loyalty to inspire trial
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- Figure 6: Attributes that encourage new beverage trial, November 2015
- What it means
The Market – What You Need to Know
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- Top non-alcoholic categories struggles, remaining sees growth
- Juice, CSDs, dairy milk has highest market penetration
- Preference for bulk, single-serve shifts with age
- Preferences for chilled, room temperature changes with age
- Supermarkets, mass merchandisers top purchase locations
Market Breakdown
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- Leading categories see stagnant growth and declines
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- Figure 7: Percent change in sales non-alcoholic drinks, by segment, at current prices, 2014-15
- Carbonated Soft Drinks: Spotlight on Natural/Craft – US, June 2015
- Juice, Juice Drinks, and Smoothies – US, November 2015
- Mintel’s upcoming Dairy Milk – US, March 2016
- Bottled Water – US, January 2015
- Coffee – US, September 2015
- Nutritional and Performance Drinks – US, January 2015
- Energy Drinks – US, May 2015
- Tea & RTD Tea – US, July 2015
- Mintel’s upcoming Non-dairy Milk – US, April 2016
Market Perspective – Beverage Consumption
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- Juice, CSDs, dairy milk have highest market penetration
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- Figure 8: Non-alcoholic beverage consumption, November 2015
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- Figure 9: Individual carbonated soft drinks and bottled water mean consumption in a seven- day period, July 2014 to September 2015
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- Figure 10: Household mean consumption of juice, coffee, tea, or milk on an average day, July 2014 to September 2015
- Figure 11: Individual energy drink/shot and thirst quenching/sports drinks mean consumption in a 30 day period, July 2014 to September 2015
Market Perspective – Bulk Versus Single-serve
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- Preference for bulk, single-serve shifts with age
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- Figure 12: Size and refrigeration preferences – Size, by age, November 2015
- Single-serve can encourage beverage trial
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- Figure 13: Size and refrigeration preferences – Attitudes toward single-serve, November 2015
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- Figure 14: Size and refrigeration preferences – Attitudes toward single-serve, by age, November 2015
Market Perspective – Chilled Versus Store Shelves
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- Preferences for chilled, room temperature changes with age
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- Figure 15: Size and refrigeration preferences – Refrigeration preferences, by age, November 2015
- Consumers expect beverages to be on store shelves
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- Figure 16: IFT beverage blurring – Beverage placement, June 2015
Market Perspective – Purchase Locations
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- Supermarkets, mass merchandisers top purchase locations
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- Figure 17: Preferred beverages attitudes and behaviors – Top purchasing locations, November 2015
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- Figure 18: Preferred beverages attitudes and behaviors – Top purchasing locations, by age, November 2015
Market Factors
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- Health concerns remain top-of-mind with consumers
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- Figure 19: Important to achieve good health – Any top three rank, May 2015
- Consumers aged 25-34, older groups on the rise
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- Figure 20: Growth rates of population (% change), by age, 2010-20
- Declining household income challenges some beverage categories
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- Figure 21: Median household income, in inflation-adjusted dollars, 2004-14
- Households with children decline
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- Figure 22: Households, by presence of own children, 2003-13
- Hispanic population experiencing growth
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- Figure 23: Growth rates of population (% change), by race and Hispanic origin, 2010-20
- Overlap between Millennials, acculturated Hispanics, and parents
- Millennials as parents
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- Figure 24: Households with own children, by age of householder, 2013
- Hispanics as parents
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- Figure 25: Households with own children, by Hispanic origin of householder, 2013
- Hispanics as Millennials
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- Figure 26: Generations, by Hispanic origin, 2015
Key Players – What You Need to Know
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- Cross-category beverages see growth
- Beverage category crossover creates new flavors, functions
- Grassroots promotional efforts move the needle
Product Impact
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- Iconic packaging can cause confusion
- Brand name can interfere with consumer perception
- Packaging/looks can be deceiving
- Hybrid beverages may nudge consumers to new territory
What’s Working?
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- Cross-category drinks hit on trends, see success at MULO channels
- Characteristics of success
- Branded by heritage and ingredients
- Categories with healthier association
What’s Struggling?
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- Some drinks facing stronger competition at MULO outlets
What’s Next?
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- Waters increase functionality and flavor offerings
- Around the US
- Around the globe
- Teas cross with variety of categories
- Around the US
- Around the globe
- Coffee flavor, function tapped for multiple drink types
- Around the US
- Around the globe
- Juice fusions move to new categories
- Around the US
- Around the globe
- Milk meets water
The Consumer – What You Need to Know
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- Confusion over cross-category beverage placement
- Hybrid drinks struggle with positive perceptions
- Majority only sometimes purchase new drinks
- Consumers open to new beverage trial
- Free trial, taste most important to encourage new beverage trial
- Consumers enjoy wide beverage selection
Beverage Confusion
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- Confusion over cross-category beverage placement
- Vital Juice Co. Almond Cold Pressed Juice
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- Figure 27: Beverage placement – Vital Juice Co. Almond Cold Pressed Juice, November 2015
- POM Supertea
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- Figure 28: Beverage placement – POM Supertea, November 2015
- Mtn Dew Kickstart Energizing Sparkling Juice Beverage
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- Figure 29: Beverage placement – Mtn Dew Kickstart Energizing Sparkling Juice Beverage, November 2015
- V8 V Fusion + Energy
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- Figure 30: Beverage placement – V8 V Fusion + Energy, November 2015
- Starbucks Refreshers Sparkling Green Coffee Energy Beverage
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- Figure 31: Beverage placement – Starbucks Refreshers Sparkling Green Coffee Energy Beverage, November 2015
- Hi Ball Sparkling Energy Water
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- Figure 32: Beverage placement – Hi Ball Sparkling Energy Water, November 2015
- Jones Strawberry Lime Sparkling Water
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- Figure 33: Beverage placement – Jones Strawberry Lime Sparkling Water, November 2015
- Rockstar Roasted Caffe Latte Flavored Energy & Coffee Drink
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- Figure 34: Beverage placement – Rockstar Roasted Caffe Latte Flavored Energy & Coffee Drink, November 2015
- Harmless Harvest 100% Raw Coconut Water with Fair Trade Coffee
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- Figure 35: Beverage placement – Harmless Harvest 100% Raw Coconut Water with Fair Trade Coffee, November 2015
Views toward Hybrid (Fusion/Cross-category) Drinks
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- Hybrid drinks has opportunity to leverage uniqueness
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- Figure 36: Beverage blurring – Positive attitudes toward hybrid drinks, June 2015
- Figure 37: Beverage blurring – Positive attitudes toward hybrid drinks, by age, June 2015
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- Figure 38: Beverage blurring – Positive attitudes toward hybrid drinks, by demographics, June 2015
- Hybrid/fusions drinks are challenged by consumer perceptions
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- Figure 39: Beverage blurring – Negative attitudes toward hybrid drinks, June 2015
New Beverage Purchasing Behaviors
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- Majority only sometimes purchase new drinks
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- Figure 40: Drinking attitudes and behaviors – New drink purchasing behaviors, November 2015
- Frequently purchase new or different beverages
- Sometimes purchased new or different beverages
- Rarely purchases new or different beverages
- Frequent new drink shoppers visit a variety of retail channels
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- Figure 41: Preferred beverages attitudes and behaviors – Top purchasing locations, by drinking attitudes and behaviors, November 2015
- Hybrid beverage drinkers
- Occasional hybrid drinkers
- No interest in hybrid drinks
Attitudes toward New and Preferred Beverages
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- Consumers open to new beverage trial
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- Figure 42: Drinking attitudes and behaviors – Preferred beverages, November 2015
- Open to new beverage trial
- Sticks to preferred beverages
- Prefers variety
- Reasons for drinking preferred beverages
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- Figure 43: Preferred beverages attitudes and behaviors – Reasons for drinking preferred beverages, November 2015
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- Figure 44: Preferred beverages attitudes and behaviors – Reasons for drinking preferred beverages, by age, November 2015
Encourage New Beverage Trial
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- Free trial, taste most important to encourage new beverage trial
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- Figure 45: Attributes that encourage new beverage trial, November 2015
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- Figure 46: Attributes that encourage new beverage trial, by age, November 2015
- Opportunities to reach women with new drink trial
- Opportunities to reach parents with new drink trial
Attitudes toward Available Drink Selection
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- Consumers enjoy wide beverage selection
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- Figure 47: Drinking attitudes and behaviors – Attitudes toward beverage availability, November 2015
- Enjoys the selection
- Indifferent
- Overwhelmed
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- Figure 48: Drinking attitudes and behaviors – Attitudes toward beverage availability, by age, November 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Market Breakdown
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- Figure 49: Sales non-alcoholic drinks, by segment, at current prices 2010-15
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