Table of Contents
Executive Summary
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- Overview
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- Figure 1: Share of expenditures on non-alcoholic beverages, by segment and Hispanic origin, at current prices, 2017
- The issues
- Trial occasions may not happen naturally
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- Figure 2: Hispanics’ attitudes toward trying new beverages, September 2017
- Family likes and health benefits don’t appeal to the same Hispanics
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- Figure 3: Factors Influencing Hispanics’ non-alcoholic beverages purchases – family likes and health benefits, September 2017
- Concerns about sugar content and price can hinder further growth
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- Figure 4: Non-alcoholic beverages purchase barriers for Hispanics, September 2017
- The opportunities
- Associating brands with specific meal occasions
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- Figure 5: Correspondence analysis – Association of beverages and occasions, September 2017
- Leveraging the social component
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- Figure 6: Influencers for Hispanics’ non-alcoholic beverages purchases – Thinking of others, by gender and age, September 2017
- Leveraging the health component
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- Figure 7: Influencers for Hispanics’ non-alcoholic beverages purchases – Health claims, by gender and age, September 2017
- What it means
The Market – What You Need to Know
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- Hispanics spend $16.6 billion on non-alcoholic beverages
- Expenditures growth is driven by bottled water
- Flavor matters to Hispanics
- Health is important, but Hispanics are keeping it simple
- Hispanics tend to have larger families
- Hispanics are young
- Hispanics are value-oriented
- Hispanics have 20 countries of origin
Market Size
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- Hispanic share of expenditures on non-alcoholic beverages is growing
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- Figure 8: Hispanic consumer expenditures on non-alcoholic beverages, at current prices, 2012-17
Market Breakdown
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- Bottled water and other beverages driving growth
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- Figure 9: Hispanic consumer expenditures on non-alcoholic beverages, by segment, at current prices, 2012-17
- Figure 10: Hispanic consumer expenditures on non-alcoholic beverages, by segment, at current prices, 2015 and 2017
Market Perspective
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- The importance of flavor
- The carbonated soft drinks example
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- Figure 11: Beverages consumed to replace soft drinks, by race and Hispanic origin, indexed to all, December 2016
- The energy drinks example
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- Figure 12: Energy drinks drinking motivation, by race and Hispanic origin, indexed to all, February 2017
- When thinking about health, Hispanics are pragmatic
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- Figure 13: Motivations for drinking water, by race and Hispanic origin, indexed to all, November 2016
Market Factors
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- Larger families hint at a more complex dynamic
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- Figure 14: Average household size, by race and Hispanic origin, 2016
- Figure 15: Households with related children, by race and Hispanic origin of householder, 2016
- The Hispanic market is young
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- Figure 16: Population distribution, by Hispanic origin and generation share, 2017
- Lower median household income forces Hispanics to search for value
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- Figure 17: Median household income, by race and Hispanic origin of householder, 2015
- Figure 18: Household income distribution, by race and Hispanic origin of householder, 2015
- Hispanics’ country of origin/descent includes 20 countries
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- Figure 19: Hispanic population, by country of origin/heritage, 2015
Key Players – What You Need to Know
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- Distribution can be key to grow
- Tropical flavors can get Hispanics’ attention
- Staying relevant
- Brands from Latin America struggle to grow appeal
- Some categories may introduce private labels to Hispanics
- The convenience of vending machines
- The meaning of ingredients
- Flavor and met expectations
What’s Happening?
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- For some categories, it’s all about distribution
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- Figure 20: Brands of non-carbonated bottled water that Hispanics drank in the past 7 days, by region, April 2016-May 2017
- Tropical flavors can resonate with Hispanics
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- Figure 21: Flavors of fruit juice or drinks that Hispanic households drink, indexed to all, April 2016-May 2017
- Leveraging brand equity
- Brands from country of origin
- Private labels to set a foot in the house
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- Figure 22: Reasons for purchasing more private label products, by race and Hispanic origin, indexed to all, November 2016
What’s Next?
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- An increasing focus for on-the-go
- An increasing focus on ingredients
- Despite the noise, it all goes back to flavor
The Consumer – What You Need to Know
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- More Hispanics increased their purchases of non-alcoholic beverages than decreased
- Hispanics enjoy trying new beverages, but are okay with current options
- Family likes and health benefits are important
- Hispanics clearly associate beverages with different meal occasions
- Hispanics show flexibility when thinking about non-alcoholic beverages
- Price and sugar content are the main purchase barriers
Changes in Non-Alcoholic Beverages Purchases
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- Hispanics feel they are purchasing about the same or more
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- Figure 23: Hispanics’ non-alcoholic beverages purchases and change over the past year, September 2017
- Bottled water
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- Figure 24: Hispanics’ perceived change in bottled water purchases over the past year, by key demographics, September 2017
- Dairy milk
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- Figure 25: Hispanics’ perceived change in dairy milk purchases over the past year, by key demographics, September 2017
- 100% fruit juice
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- Figure 26: Hispanics’ perceived change in 100% fruit juice purchases over the past year, by key demographics, September 2017
- Tea
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- Figure 27: Hispanics’ perceived change in tea purchases over the past year, by key demographics, September 2017
- Juice drinks
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- Figure 28: Hispanics’ perceived change in juice drinks purchases over the past year, by key demographics, September 2017
- Coffee
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- Figure 29: Hispanics’ perceived change in coffee purchases over the past year, by key demographics, September 2017
- Regular soda
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- Figure 30: Hispanics’ perceived change in regular soda purchases over the past year, by key demographics, September 2017
- Sports drinks
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- Figure 31: Hispanics’ perceived change in sports drinks purchases over the past year, by key demographics, September 2017
- Diet soda
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- Figure 32: Hispanics’ perceived change in diet soda purchases over the past year, by key demographics, September 2017
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- Figure 33: Hispanic consumption of regular soda and diet soda – Coca-Cola and Pepsi products, April 2016-May 2017
Attitudes toward Trial of Non-Alcoholic Beverages
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- Trying is nice, but it is not a must
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- Figure 34: Hispanics’ attitudes toward drinking non-alcoholic beverages, September 2017
- Moms more likely to be influenced by family
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- Figure 35: Hispanics’ family influence in the beverages they purchase, by household income and level of acculturation, September 2017
- More affluent Hispanics tend to be audacious mixing beverages
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- Figure 36: Share of Hispanics who like to experiment mixing non-alcoholic drinks, by household income and level of acculturation, September 2017
Purchase Influencers
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- Not all Hispanics have the same priorities
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- Figure 37: Factors Influencing Hispanics’ non-alcoholic beverages purchases, September 2017
- Flavor is the path of least resistance
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- Figure 38: TURF analysis – Non-alcoholic beverages purchase influencers, September 2017
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- Figure 39: TURF analysis – Non-alcoholic beverages purchase influencers, September 2017
- Hispanic women more likely to think about others’ likes
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- Figure 40: Influencers for Hispanics’ non-alcoholic beverages purchases – thinking of others, by gender and age, September 2017
- Need to please others decreases with acculturation
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- Figure 41: Influencers for Hispanics’ non-alcoholic beverages purchases – thinking of others, by level of acculturation, September 2017
- Health claims more likely to influence Hispanic women aged 35+
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- Figure 42: Influencers for Hispanics’ non-alcoholic beverages purchases – Health claims, by gender and age, September 2017
- All-natural/organic claims are welcomed—budget permitting
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- Figure 43: Importance of all-natural/organic claims in Hispanics’ non-alcoholic beverages purchases – Health claims, by household income and level of acculturation, September 2017
Associations of Beverages and Occasions
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- There is value in associating drinks with meals
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- Figure 44: Share of Hispanics who think that the right drinks are key to enjoying meals, by gender and age, September 2017
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- Figure 45: Share of Hispanics who think that the right drinks are key to enjoying meals, by household income and level of acculturation, September 2017
- Hispanics clearly associate specific beverages with specific meal occasions
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- Figure 46: Correspondence analysis – Association of beverages and occasions, September 2017
- Who is driving associations
- Breakfast
- Lunch and dinner/supper
- Snacks
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- Figure 47: Association of beverages and occasions, September 2017
Attitudes toward Non-Alcoholic Beverages
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- Hispanics are pragmatic about non-alcoholic beverages
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- Figure 48: Hispanics’ attitudes toward non-alcoholic beverages, September 2017
- Are Hispanics willing to pay for premium beverages?
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- Figure 49: Hispanics’ attitudes toward premium non-alcoholic beverages, by household income and level of acculturation, September 2017
- Is tap water a competitor?
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- Figure 50: Hispanics’ attitudes toward tap water, by household income and level of acculturation, September 2017
Purchase Barriers
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- Price and sugar content discourage trial
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- Figure 51: Non-alcoholic beverages purchase barriers for Hispanics, September 2017
- Too much sugar can raise flags
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- Figure 52: TURF analysis – Purchase barriers, September 2017
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- Figure 53: TURF analysis – Purchase barriers, September 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- TURF analysis methodology
- A note on acculturation
Appendix – The Market
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- Figure 54: Hispanic consumer expenditures on non-alcoholic beverages, at inflation adjusted prices, 2012-17
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Appendix – The Consumer
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- Figure 55: Brands of regular soda drinks that Hispanics drank in the past 7 days, by Hispanic origin and language spoken at home, April 2016-May 2017
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