Nutritional and Performance Drinks - US - January 2015

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
EXECUTIVE SUMMARY
The market
Category sales are estimated to reach $11.5 billion in 2014
Figure 1: Total US retail sales and forecast of nutritional and performance drinks, at current prices, 2009-19
Segment performance
Sports drinks lead category sales, performance drinks lead growth
Figure 2: Total US retail sales of nutritional and performance drinks, by segment, at current prices, 2009-14
Leading companies
PepsiCo leads sales, Nestlé leads growth
Figure 3: MULO sales of nutritional and performance drinks, by five leading companies and private label, rolling 52 weeks 2013 and 2014 ($ millions)
The consumer
Sports drinks experience the highest usage in the category
Figure 4: Nutritional and performance drink consumption, any consumption, by age, October 2014
One third of users drink sports drinks outside of workouts
Figure 5: Statements related to sports drinks (reasons for use), by age, October 2014
What we think
ISSUES AND INSIGHTS
Should category innovation move in the direction of specialization or adopt a broad reach?
Issue
Insight: Room for both specialization and democratization exist
Do consumers think products in the category deliver on claims?
Issue
Insight: Category participants believe products help them meet their goals, but further efficacy positioning is necessary
Do consumers see products in the category as healthy?
Issue
Insight: The category is generally seen as contributing to health, but room for boosted health positioning will help products manage the competition
TREND APPLICATIONS
Trend: Extend My Brand
Trend: Prove It
Trend: Transumers
MARKET SIZE AND FORECAST
Key points
Sales and forecast of nutritional and performance drinks
Figure 6: Total US retail sales and forecast of nutritional and performance drinks, at current prices, 2009-19
Figure 7: Total US retail sales and forecast of nutritional and performance drinks, at inflation-adjusted prices, 2009-19
Continued growth projected
Figure 8: Total US retail sales and forecast of nutritional and performance drinks, at current prices, 2009-19
Forecast methodology
MARKET DRIVERS
Exercise trends favor category participation
Figure 9: Physical activity, October 2014
Figure 10: Nutritional and performance drink consumption, by physical activity, October 2014
More than one third of consumers are trying to lose weight by dieting
Figure 11: Weight management, October 2014
General interest in health and wellness benefit category participation
Figure 12: Personal goals in 2014, January 2014
Half of consumers aim for a balanced diet
Figure 13: Diet preferences, October 2014
Figure 14: Nutritional and performance drink consumption, by diet preferences, October 2014
Aging population suggests a need for nutritional support
Figure 15: Population age 18+, by age, 2009-19
Expanding Hispanic population means increases among key target group
Figure 16: Population by race and Hispanic origin, 2009-19
Continued economic uncertainty favors affordable tools
Figure 17: Financial outlook: present vs. last 12 months, April 2008-June 2014
SEGMENT PERFORMANCE
Key points
Sports drinks comprise 59% of sales, performance drinks post strong growth
Figure 18: Total US retail sales of nutritional and performance drinks, by segment, at current prices, 2012 and 2014
Sports drink sales grow 27% from 2009-14
US retail sales of sports drinks
Figure 19: Total US retail sales and forecast of sports drinks, at current prices, 2009-19
Figure 20: Total US retail sales and forecast of sports drinks, at inflation-adjusted prices, 2009-19
Performance drink sales increase by 116% from 2009-14
US retail sales of performance drinks
Figure 21: Total US retail sales and forecast of performance drinks, at current prices, 2009-19
Figure 22: Total US retail sales and forecast of performance drinks, at inflation-adjusted prices, 2009-19
Sales of weight loss drinks dropped 13% from 2009-14
US retail sales of weight loss drinks
Figure 23: Total US retail sales and forecast of weight loss drinks, at current prices, 2009-19
Figure 24: Total US retail sales and forecast of weight loss drinks, at inflation-adjusted prices, 2009-19
Nutritional drink sales grow 79% from 2009-14
Familiar brands bring accessible offerings to the nutritional drink market
US retail sales of nutritional drinks
Figure 25: Total US retail sales and forecast of nutritional drinks, at current prices, 2009-19
Figure 26: Total US retail sales and forecast of nutritional drinks, at inflation-adjusted prices, 2009-19
RETAIL CHANNELS
Key points
Other channels comprise 70% of category sales
Figure 27: Total US retail sales of nutritional and performance drinks, by channel, at current prices, 2012 and 2014
Supermarket sales of nutritional and performance drinks grow 62% from 2009-14
Figure 28: US supermarket sales of nutritional and performance drinks, at current prices, 2009-14
Drug store sales of nutritional and performance drinks increase by 57% from 2009-14
Figure 29: US drug store sales of nutritional and performance drinks, at current prices, 2009-14
Other retail channel sales of nutritional and performance drinks grow 35% from 2009-14
Exclusive placement may benefit both manufacturers and retailers
Figure 30: US sales of nutritional and performance drinks at other retail channels, at current prices, 2009-14
Natural channels sales in the category grew by 37% from 2012-14
Natural channel sales of nutritional and performance drinks
Figure 31: Natural supermarket sales of nutritional and performance drinks, at current prices, rolling 52 weeks 2012-14
Sports drinks see strong growth in natural channels
Figure 32: Natural supermarket sales of nutritional and performance drinks, by segment, at current prices, rolling 52 weeks 2012 and 2014
Stevia-sweetened products see strong growth
Figure 33: Natural supermarket sales of nutritional and performance drinks, by presence of alternative sweetener, at current prices, rolling 52 weeks 2012 and 2014
COMPETITIVE CONTEXT
Consumers have a wide range of drink options from which to choose
Water still leads for hydration
Figure 34: Statements related to sports drinks (competition), by sports drink consumption frequency*, October 2014
Figure 35: Statements related to sports drinks (competition), by diet preferences, October 2014
Water enhancers deliver convenient, customizable, and flavorful drink experience
Coconut water touts role in hydration
Energy drinks and caffeinated beverages provide a boost
Figure 36: Characteristics (energy drinks), by daily sports drink and performance drink consumption, October 2014
RTD smoothies compete for share of stomach as meal replacements
Health interest challenges the category as much as it helps it
Figure 37: Nutritional and performance drink consumption, by weight management, October 2014
Interest in protein/natural on the rise
Figure 38: Watching your diet (for health or weight), April 2009-June 2014
Some 21% of sports drink users wish for more low-calorie options
Figure 39: Statements related to sports drinks (innovation of interest – low-calorie), by sports drink consumption frequency*, October 2014
LEADING COMPANIES AND BRAND ANALYSIS
Key points
PepsiCo leads MULO sales in category
Figure 40: Statements related to nutritional and weight loss drinks (store brands), by daily use of nutritional and performance drinks, October 2014
Figure 41: MULO sales of nutritional and performance drinks, by leading companies, rolling 52 weeks 2013 and 2014
Gatorade dominates MULO sales of sports drinks
MULO sales of sports drinks
Figure 42: MULO sales of sports drinks, by leading companies and brands, rolling 52 weeks 2013 and 2014
Three brands lead performance drink sales at MULO
MULO sales of performance drinks
Figure 43: MULO sales of performance drinks, by leading companies and brands, rolling 52 weeks 2013 and 2014
Slim-Fast loses MULO share to Atkins
MULO sales of weight loss
Figure 44: MULO sales of weight loss drinks, by leading companies and brands, rolling 52 weeks 2013 and 2014
Ensure tops MULO sales of nutritional drinks
MULO sales of nutritional drinks
Figure 45: MULO sales of nutritional drinks, by leading companies/brands, rolling 52 weeks 2013 and 2014
INNOVATIONS AND INNOVATORS
Weight loss drinks experience strong new product activity
Figure 46: Weight loss drink launches, by launch type, 2010-14
Figure 47: Sports drink launches, by launch type, 2010-14
Figure 48: Performance drink launches, by launch type, 2010-14
Figure 49: Nutritional drink launches, by launch type, 2010-14
Satiety claims on the rise among weight loss drinks
Figure 50: Weight loss drink launches, by top 10 product claims, 2010-14
Other functional and ethical claims grow among sports drinks
Figure 51: Sports drink launches, by top 10 product claims, 2010-14
Protein claims see strong growth among nutritional drink launches
Figure 52: Nutritional drink launches, by top 10 product claims, 2010-14
Flavor innovation may expand interest
Figure 53: Statements related to sports drinks (innovation of interest), by sports drink consumption frequency*, October 2014
Sports drink segment ventures into tropical
Figure 54: Sports drink launches, by top 10 flavors, 2010-14
Other drinks in the category can move beyond chocolate and vanilla
Figure 55: Statements related to nutritional and weight loss drinks (flavor), by daily consumption, October 2014
Figure 56: Weight loss drink launches, by top 10 flavors, 2010-14
Kid-focused drinks prime the market for a new crop of consumers
SOCIAL MEDIA – SPORTS DRINKS
Key findings
Market overview
Key social media metrics
Figure 57: Key social media metrics, Dec. 2014
Brand usage and awareness
Figure 58: Brand usage and awareness levels for select sports drink brands, October 2014
Interactions with sports drink brands
Figure 59: interaction levels for select sports drink brands, October 2014
Leading online campaigns
Mobile apps
Motivational campaigns
Brand ambassadors
What we think
Online conversations
Figure 60: Online conversations for select sports drink brands, by week, Dec. 1, 2013-Nov. 30,2014
Where are people talking about sports drinks?
Figure 61: Online conversations for select sports drink brands, by page type, Dec. 1, 2013-Nov. 30,2014
What are people talking about?
Figure 62: Topics of conversation among select sports drink brands, Dec. 1, 2013-Nov. 30,2014
NUTRITIONAL AND PERFORMANCE DRINK CONSUMPTION
Key points
Sports drinks experience the highest usage in the category
Figure 63: Nutritional and performance drink consumption, October 2014
Sports drink users average one per week
Figure 64: Thirst quencher and sports/activity drinks, April 2009-June 2014
Men are strong targets for sports, nutritional, and performance drinks
Figure 65: Nutritional and performance drink consumption, by gender, October 2014
25-34s are significantly more likely than average to participate in the category
Figure 66: Nutritional and performance drink consumption, by age, October 2014
Consumption among teens and kids on the decline
Figure 67: Thirst quencher and sports/activity drinks, April 2013-June 2014
Figure 68: Thirst quenchers or sports/activity drinks, April 2013-June 2014
Category may be cost prohibitive
Figure 69: Nutritional and performance drink consumption, by household income, October 2014
Powders add diversity to a regular schedule
Figure 70: Use of powdered  nutritional and weight loss drinks (format), by consumption frequency*, October 2014
Powders most strongly appeal to under 35s
Figure 71: Statements related to nutritional and weight loss drinks (format), by age, October 2014
Powder packets may be convenient option for active lifestyles
Figure 72: Statements related to nutritional and weight loss drinks (format), by physical activity, October 2014
REASONS FOR USE – SPORTS DRINKS
Key points
One third of users say they drink sports drinks outside of workouts
Energy positioning resonates with 25-34s
Figure 73: Statements related to sports drinks (reasons for use), by age, October 2014
Opportunity exists for premium/targeted positioning
Figure 74: Statements related to sports drinks (reasons for use), by household income, October 2014
Energy delivery/maintenance important among frequent users
Figure 75: Statements related to sports drinks (reasons for use), by sports drink consumption frequency*, October 2014
REASONS FOR USE – NUTRITIONAL AND WEIGHT LOSS DRINKS
Key points
Consumers turn to products in the category for a range of uses
Figure 76: Statements related to nutritional and weight loss drinks (reasons for use), by drink type, October 2014
Infrequent users turn to the products when they’re busy
Figure 77: Reasons for occasional use, by age, October 2014
OPINIONS ABOUT NUTRITIONAL AND PERFORMANCE DRINKS
Key points
Sports drinks lead for taste, nutritional drinks seen as healthy
Figure 78: Opinions about nutritional drinks, performance drinks, and energy drinks, October 2014
Figure 79: Opinions about nutritional drinks, performance drinks, and energy drinks, correspondence analysis, October 2014
Sports drinks
Sports drink flavors particularly appeal to under 25s
Figure 80: Opinions about sports drinks, by age, October 2014
Daily users three times as likely to say products help with goals
Figure 81: Opinions about sports drinks, by consumption frequency*, October 2014
Meal replacement drinks
Taste and health attract daily meal replacement users
Figure 82: Opinions about meal replacement drinks, by consumption frequency*, October 2014
Nutritional drinks
Health positioning and efficacy attracts nutritional drink users
Figure 83: Opinions about nutritional drinks, by consumption frequency*, October 2014
Weight loss drinks
Weight loss drinks don’t resonate with 65+
Figure 84: Opinions about weight loss drinks, by age, October 2014
More than a quarter of users say weight loss drinks do what they promise
Figure 85: Opinions about weight loss drinks, by consumption frequency*, October 2014
Performance drinks
Nearly one quarter of consumers say performance drinks are too extreme for their needs
Figure 86: Opinions about performance drinks, by age, October 2014
More than one third of daily users say performance drinks help meet goals
Figure 87: Opinions about performance drinks, by consumption frequency**, October 2014
ATTRIBUTES OF INTEREST – SPORTS DRINKS
Key points
Nearly one quarter of sports drink users looking for natural products
Figure 88: Statements related to sports drinks (attributes), by age, October 2014
Daily users inspired by athletes in ads
Figure 89: Statements related to sports drinks (attributes), by sports drink consumption frequency*, October 2014
ATTRIBUTES OF INTEREST – NUTRITIONAL AND WEIGHT LOSS DRINKS
Key points
Protein leads interest in nutritional and weight loss drinks
Figure 90: Statements related to nutritional and weight loss drinks (attributes), by age, October 2014
Natural products of interest to HHs earning $150K+
Figure 91: Statements related to nutritional and weight loss drinks (attributes), by household income, October 2014
Probiotics may resonate with daily weight loss drink users
Figure 92: Statements related to nutritional and weight loss drinks (attributes), by weight loss drink consumption frequency*, October 2014
PURCHASE LOCATION – SPORTS DRINKS
Key points
Mass comes in close second to supermarkets in sports drink sales
18-24s more likely to shop for sports drinks at mass merchandisers
Figure 93: Sports drink purchase location, by age, October 2014
Club stores help daily users and active consumers buy in bulk
Figure 94: Sports drink purchase location, by sports drink consumption frequency*, October 2014
Figure 95: Sports drink purchase location, by physical activity, October 2014
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Hispanics appear as strong target for category participation
Figure 96: Nutritional and performance drink consumption, by race/Hispanic origin, October 2014
Sports drink mixes find stronger interest among Hispanics
Figure 97: Statements related to sports drinks (format), by Hispanic origin, October 2014
Natural ingredients appeal to Hispanics
Figure 98: Statements related to nutritional and weight loss drinks (attributes), by race/Hispanic origin, October 2014
Ads featuring athletes resonate with Hispanics
Figure 99: Statements related to sports drinks (attributes), by Hispanic origin, October 2014
APPENDIX – OTHER USEFUL TABLES
Consumption
Figure 100: Nutritional and performance drink consumption, by gender and age, October 2014
Figure 101: Statements related to nutritional and weight loss drinks (format), by household income, October 2014
Figure 102: Statements related to sports drinks (format), by household income, October 2014
Reasons for use
Figure 103: Statements related to nutritional and weight loss drinks (reasons for use), by age, October 2014
Figure 104: Statements related to nutritional and weight loss drinks (reasons for use), by race/Hispanic origin, October 2014
Figure 105: Statements related to nutritional and weight loss drinks (reasons for use), by weight management, October 2014
Figure 106: Statements related to sports drinks (reasons for use), by physical activity, October 2014
Figure 107: Statements related to nutritional and weight loss drinks (reasons for use), by weight loss drink consumption frequency*, October 2014
Figure 108: Statements related to nutritional and weight loss drinks (reasons for use), by meal replacement drink consumption frequency*, October 2014
Figure 109: Statements related to nutritional and weight loss drinks (reasons for use), by nutritional drink consumption frequency*, October 2014
Opinions about nutritional and performance drinks
Figure 110: Opinions about meal replacement drinks, by age, October 2014
Figure 111: Opinions about nutritional drinks, by age, October 2014
Figure 112: Opinions about nutritional and performance drinks, by gender and age, October 2014
Innovation of interest
Figure 113: Statements related to sports drinks (innovation of interest), by Hispanic origin, October 2014
Attributes
Figure 114: Statements related to nutritional and weight loss drinks (attributes), by meal replacement drink consumption frequency*, October 2014
Figure 115: Statements related to nutritional and weight loss drinks (attributes), by weight management, October 2014
Figure 116: Statements related to nutritional and weight loss drinks (attributes), by physical activity, October 2014
Figure 117: Statements related to sports drinks (attributes), by household income, October 2014
Flavor
Figure 118: Statements related to nutritional and weight loss drinks (flavor), by race/Hispanic origin, October 2014
Sports drink purchase location
Figure 119: Sports drink purchase location, by household income, October 2014
Figure 120: Sports drink purchase location, by gender and age, October 2014
Figure 121: Sports drink purchase location, by Hispanic origin, October 2014
Figure 122: Liquid/powdered nutritional supplements or liquid breakfasts, April 2013-June 2014
APPENDIX – SOCIAL MEDIA
Brand usage or awareness
Figure 123: Brand usage or awareness, October 2014
Figure 124: Gatorade usage or awareness, by demographics, October 2014
Figure 125: Powerade usage or awareness, by demographics, October 2014
Figure 126: PowerCoco usage or awareness, by demographics, October 2014
Figure 127: Nuun usage or awareness, by demographics, October 2014
Figure 128: MiO Fit usage or awareness, by demographics, October 2014
Figure 129: BodyArmor usage or awareness, by demographics, October 2014
Activities done
Figure 130: Activities done, October 2014
Figure 131: Gatorade – Activities done – I have looked up/talked about this brand online on social media…, by demographics, October 2014
Figure 132: Gatorade – Activities done – I have contacted/interacted with the brand online on social media to…, by demographics, October 2014
Figure 133: Gatorade – Activities done – I follow/like the brand on social media because…., by demographics, October 2014
Figure 134: Gatorade – Activities done – I have researched the brand on social media to…., by demographics, October 2014
Figure 135: Powerade – Activities done – I have looked up/talked about this brand online on social media…, by demographics, October 2014
Figure 136: Powerade – Activities done – I have contacted/interacted with the brand online on social media to…, by demographics, October 2014
Figure 137: Powerade – Activities done – I follow/like the brand on social media because…., by demographics, October 2014
Figure 138: Powerade – Activities done – I have researched the brand on social media to…., by demographics, October 2014
Figure 139: PowerCoco – Activities done – I have looked up/talked about this brand online on social media…, by demographics, October 2014
Figure 140: PowerCoco – Activities done – I have contacted/interacted with the brand online on social media to…, by demographics, October 2014
Figure 141: PowerCoco – Activities done – I follow/like the brand on social media because…., by demographics, October 2014
Figure 142: MiO Fit – Activities done – I have looked up/talked about this brand online on social media…, by demographics, October 2014
Figure 143: MiO Fit – Activities done – I have contacted/interacted with the brand online on social media to…, by demographics, October 2014
Figure 144: MiO Fit – Activities done – I follow/like the brand on social media because…., by demographics, October 2014
Key social media metrics
Figure 145: Key social media metrics for select nutritional and performance drinks, Dec. 2014
Online conversations
Figure 146: Online conversations for select nutritional and performance drink brands, by week, Dec. 1, 2013-Nov. 30,2014
APPENDIX – TRADE ASSOCIATIONS
Academy of Nutrition and Dietetics
American Beverage Association (ABA)
Council for Responsible Nutrition (CRN)
Food Marketing Institute (FMI)
Grocery Manufacturers of America (GMA)
International Society of Beverage Technologists (ISBT)
National Association of Convenience Stores (NACS)