Black Consumers and Non-Alcoholic Beverages - US - December 2017

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Black household spend on beverages will reach $10.9 billion in 2017
Figure 1: Black household spending on non-alcoholic beverages* at current prices, 2012-17
Black consumers are substituting artificial ingredients for natural and organic beverages
Figure 2: Black consumers’ non-alcoholic beverage purchase change, October 2017
Healthier beverage consumption is a concern for all Black consumers
Figure 3: Non-alcoholic beverage purchase influencers, barriers, and perceptions – Health, October 2017
The opportunities
Showcase healthier beverages options on Black consumers’ terms
Figure 4: Non-alcoholic beverage purchase influencers, barriers, and perceptions – Attributes and familiarity, October 2017
Create awareness of new and innovative beverages, where they already shop
Figure 5: Non-alcoholic beverage purchase influencers and perceptions – Shopping, October 2017
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Black households to spend $10.9 billion on non-alcoholic beverages
Bottled water sales growth outpaces other categories
Carbonated soft drink sales are falling among Black consumers
THE BLACK POPULATION BY THE NUMBERS
Black population totals 43.3 million people
Figure 6: Total US and Black population estimates, 2012-22
One quarter of the Black population are children
Figure 7: Black population by age, 2017
Black median household income lower than the average, but middle class percentages are on par
Figure 8: US median household income distribution, by race and Hispanic origin, 2016
Black population is concentrated in the South
Figure 9: Distribution of the Black population, by census region, 2015
MARKET SIZE
Black household estimated spend on non-alcoholic beverages increased 11.4% between 2012-17
Figure 10: Expenditures on non-alcoholic beverages, by Black and total, at current prices, 2012-17
MARKET BREAKDOWN
Carbonated soft drinks and bottled water lead non-alcoholic drink sales
Figure 11: Expenditures on non-alcoholic beverages, by Black and total, by segment, at current prices, 2012-17
Black consumer consumption of “healthier” drink options expected to increase
Figure 12: Black consumer expenditures on non-alcoholic beverages, by segment, at current prices, 2015 and 2017
MARKET FACTORS 
Black adults drink almost twice as much fruit juice in comparison to the average
Figure 13: Prevalence of consumption of regular soda and fruit drinks ≥1 times/day among adults by race/Hispanic origin, 2012
Black adults drink the greatest number, highest percentage of calories from sweetened beverages
Figure 14: Average calories from sugar-sweetened beverages among adults, by gender and by race/Hispanic origin, 2011-14
Figure 15: Average percentage of daily caloric intake from sugar-sweetened beverages, by gender and by race/Hispanic origin, 2011-14
Black teens more likely to drink sweetened beverages in comparison to White and Hispanic teens
Figure 16: Percentage of high school students beverage consumption, by race/Hispanic origin, 2010
Soda consumption declines, juice emerges as drink of choice for Black teens
Figure 17: Percentage of high school students’ daily soda, milk, and juice consumption, by race/Hispanic origin, 2007-15
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Black adults, teens drink more regular soft drinks than the general market, but reject diet soda
Black consumers drink 100% fruit juice for its naturally-sweetened taste
Iced tea, aka “sweet tea,” is a Southern staple in Black households across the country
Local government-imposed taxes on sweetened beverages impact sales
Contaminated municipal water sources in predominately Black communities causes concern nationwide
WHAT’S HAPPENING WITH CARBONATED BEVERAGES
Carbonated beverages are a household favorite among Black adults and teens
Figure 18: Carbonated beverage consumption among Black adults and teens, and total adults and teens, April 2016-May 2017
Regular carbonated beverages are preferred over diet
Figure 19: Carbonated beverage consumption, by type, among Black adults and teens, indexed to all, April 2016-May 2017
Coca-Cola edges out Pepsi as the preferred cola among Black consumers
Figure 20: Carbonated cola consumption by brand among Black adults and teens, indexed to total, April 2016-May 2017
Black consumers drive flavored carbonated soda consumption
Figure 21: Top ten other carbonated soda drink consumption, by brand among Black adults and teens, indexed to total, April 2016-May 2017
Figure 22: Sprite 2016 Lyrical Collection, September 2016
WHAT’S HAPPENING WITH BOTTLED WATER
Most Black consumers drink regular flat water, but over index on drinking flavored options
Figure 23: Bottled water consumption, by type, Black adults, indexed to total, April 2016-May 2017
Almost half of Black consumers prefer Pepsi’s Aquafina water
Figure 24: Leading non-carbonated water brands, Black adults, indexed to all, April 2016-May 2017
Seagram’s and Canada Dry brands most likely favored for mixing with alcoholic beverages
Figure 25: Leading sparkling/seltzers/natural soda brands among Black adults, indexed to the total, April 2016-May 2017
WHAT’S HAPPENING WITH JUICE
Black consumers are more likely to drink sweet fruit juices, juice drinks
Figure 26: Juice and juice drink consumption among Black adults, indexed to total, April 2016-May 2017
Black consumers prefer name brand orange juice over store brands
Figure 27: Leading orange juice brands among Black adults, indexed to total, April 2016-May 2017
Black consumers gravitate toward “healthy” and natural juice flavors
Figure 28: Top ten fruit juices/drink flavors among Black adults, indexed to total, April 2016-May 2017
Grape and “red” flavors top Black consumers’ juice drink list
Figure 29: Top 15 juice drink brands among Black adults, indexed to total, April 2016-May 2017
WHAT’S HAPPENING WITH TEA
Brewed tea consumption on par with general market, but iced tea is a cultural favorite
Figure 30: Tea consumption by type among Black adults, indexed to total, April 2016-May 2017
Most Black consumers drink regular Lipton and supplement with flavored tea
Figure 31: Regular tea brand consumption among Black adults, indexed to total, April 2016-May 2017
Lipton brand recognition and consumption extends to iced tea
Figure 32: Iced tea brand consumption among Black adults, indexed to total, April 2016-May 2017
WHAT’S HAPPENING WITH COFFEE
Black consumers drink coffee, but at lower levels vs the general market
Figure 33: Coffee consumption at home and on the go among Black adults, indexed to total, April 2017-May 2016
Convenient, easy to prepare and flavored coffee is preferred
Figure 34: Types, forms and kinds of ground coffee consumption among Black adults, indexed to total, April 2016-May 2017
Black consumers prefer mid-priced and restaurant coffee brands
Figure 35: Leading ground coffee brands among Black adults, indexed to total, April 2016-May 2017
WHAT’S STRUGGLING?
Natural disasters impact on juice production
WHAT’S NEXT?
Expansion of beverage taxes across the US
Figure 36: Beverage tax cost, implementation and end dates, taxed beverages and tax payee, 2017
Figure 37: The American Beverage Association, Can The Tax Cook County television commercial, September 2017
Figure 38: Illinois chapter of American Academy of Pediatrics - Cook County Sugar Sweetened Beverage Tax - Good For Kids!, September 2017
Quick service restaurants to offer healthy drink choices
Exposure to contaminated water may spur bottled water consumption
THE CONSUMER – WHAT YOU NEED TO KNOW 
Bottled water and 100% juice purchases increased while regular soda purchases fell among Black consumers
Black consumers enjoy innovative beverage options new to the category
Product distribution and promotions have greatest impact on Black consumers’ beverage purchases
Beverages are consumed within conventional mealtimes
Beverage sugar content is the leading health concern
BLACK CONSUMERS’ BEVERAGE PURCHASE CHANGE
Healthy beverage options drive greatest purchase change
Figure 39: Black consumers’ non-alcoholic beverage purchase change, October 2017
Black men drink first for taste, then for health
Figure 40: Black consumers’ non-alcoholic beverage purchase change – select items, by gender, October 2017
18-34s drink for taste and health benefits, older Black consumers’ preference unchanged
Figure 41: Black consumers’ non-alcoholic beverage purchase change – select items, by age, October 2017
Black parents buy healthy drinks for the kids and caffeine for themselves
Figure 42: Black consumers’ non-alcoholic beverage purchase change – select items, by parental status, October 2017
ATTITUDES TOWARD NON-ALCOHOLIC BEVERAGE CONSUMPTION
New beverage products offer desired options
Figure 43: Black consumers’ attitudes toward drinking non-alcoholic beverages, October 2017
Upper-middle income Black adults demonstrate greater openness to new product trial
Figure 44: Black consumers’ attitudes toward drinking non-alcoholic beverages, by household income, October 2017
Black parents are influenced by their kids’ beverage choices
Figure 45: Black consumers’ attitudes toward drinking non-alcoholic beverages, by parental status, October 2017
Older kids have the greatest influence on their parents’ experimentation and purchase
Figure 46: Black consumers’ attitudes toward drinking non-alcoholic beverages, by kids’ ages, October 2017
NON-ALCOHOLIC BEVERAGE PURCHASE INFLUENCERS
Black consumers’ beverage purchases driven by shopping benefits
Figure 47: Influencers for Black consumers’ non-alcoholic beverages purchases, October, 2017
Married parents, mostly moms, try to appease the family
Figure 48: Influencers for Black consumers’ non-alcoholic beverages purchases, by marital and parental status, October, 2017
Upper-middle income Black consumers are willing to experiment with new beverages, but they must be healthy
Figure 49: Influencers for Black consumers’ non-alcoholic beverages purchases, by household income, October, 2017
35-54s choose healthy beverages, with varying motivations
Figure 50: Influencers for Black consumers’ non-alcoholic beverages purchases, by age, October, 2017
NON-ALCOHOLIC BEVERAGE ASSOCIATION BY OCCASION
Black consumers drink beverages at traditional meal occasions
Breakfast beverage choices driven by parents multitasking in the morning
Younger Black adults, mostly men, “snack” on beverages that give them fuel throughout the day
Black consumers split on lunchtime beverage consumption, some indulge, others opt for healthy choices
Dinnertime offers the greatest options for everyone in the household
Figure 51: Correspondence Analysis – Beverages by occasion, October 2017
Figure 52: Beverages by occasion, October 2017
NON-ALCOHOLIC BEVERAGES PURCHASE BARRIERS
Beverage sugar content trumps health concerns
Figure 53: Non-alcoholic beverages purchase barriers for Black consumers, October 2017
Black women may buy healthier beverages if she’s aware of the benefits
Figure 54: Non-alcoholic beverages purchase barriers for Black consumers, by gender and age, October 2017
Parents must balance their product concerns with their family’s requests
Figure 55: Non-alcoholic beverages purchase barriers for Black consumers, by marital and parental status, October 2017
Black parents with younger children demonstrate the greatest concern over beverage content
Figure 56: Non-alcoholic beverages purchase barriers for Black consumers, by marital and parental status, October 2017
PERCEPTIONS OF NON-ALCOHOLIC BEVERAGES
Beverages are mostly consumed to complement meals
Figure 57: Black consumers’ perceptions of non-alcoholic beverages, October 2017
Black consumers buy beverages for their families to create enjoyable mealtimes
Figure 58: Black consumers’ perceptions of non-alcoholic beverages, by age, October 2017
Black parents with health concerns for their youngest children are willing to buy the best for them
Figure 59: Black consumers’ perceptions of non-alcoholic beverages, by children’s age, October 2017
More money = higher expectations
Figure 60: Black consumers’ perceptions of non-alcoholic beverages, by household income, October 2017
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
APPENDIX – THE MARKET 
Figure 61: Black consumer expenditures on non-alcoholic beverages, at current prices, 2012-17
Figure 62: Black consumer expenditures on non-alcoholic beverages, by segment, at current prices, 2012-17
Figure 63: Black consumer expenditures on non-alcoholic beverages, by segment, at current prices, 2015 and 2017
APPENDIX – THE CONSUMER 
Figure 64: Carbonated beverage consumption, Black adults vs all, April 2016-May 2017
Figure 65: Carbonated beverage consumption, Black teens vs all, April 2016-May 2017
Figure 66: Carbonated beverage consumption, by type, Black adults vs all, April 2016-May 2017
Figure 67: Carbonated beverage consumption, by type, Black teens vs all, April 2016-May 2017
Figure 68: Carbonated cola consumption by brand, Black adults vs all, April 2016-May 2017
Figure 69: Carbonated cola consumption, by brand, Black teens vs all, April 2016-May 2017
Figure 70: Other carbonated soda drink consumption, by brand, Black adults vs all, April 2016-May 2017
Figure 71: Other carbonated soda drink consumption, by brand, Black teens vs all, April 2016-May 2017
Figure 72: Bottled water consumption, Black adults vs all, April 2016-May 2017
Figure 73: Non-carbonated bottled water consumption, by flavor, Black adults vs all, April 2016-May 2017
Figure 74: Sparkling waters/seltzers/natural sodas bottled water consumption, by flavor, Black adults vs all, April 2016-May 2017
Figure 75: Non-carbonated bottled water consumption, by brand, Black adults vs all, April 2016-May 2017
Figure 76: Sparkling waters/seltzers/natural sodas bottled water consumption, by brand, Black adults vs all, April 2016-May 2017
Figure 77: Juice and juice drink consumption, Black adults vs all, April 2016-May 2017
Figure 78: Juice and juice drink consumption, Black adults indexed to total, April 2016-May 2017
Figure 79: Orange juice (net) consumption, by type, Black adults vs all, April 2016-May 2017
Figure 80: Orange juice (net) consumption, by brand, Black adults vs all, April 2016-May 2017
Figure 81: Other fruit juices/drinks, fruit flavors used, among Black adults vs all, April 2016-May 2017
Figure 82: Other fruit juices/drinks, by brand, Black adults vs all, April 2016-May 2017
Figure 83: Tea consumption, Black adults indexed to total, April 2016 – May 2017
Figure 84: Tea consumption, by type, Black adults vs all, April 2016-May 2017
Figure 85: Regular tea consumption, by purpose used, Black adults vs all, April 2016-May 2017
Figure 86: Regular tea consumption, by brand, Black adults vs all, April 2016-May 2017
Figure 87: Iced tea (ready-to-drink) consumption, by brand, Black adults vs all, April 2016-May 2017
Figure 88: Coffee consumption at home, Black adults vs all, April 2017-May 2016
Figure 89: Coffee consumption on-the-go, Black adults vs all, April 2017-May 2016
Figure 90: Coffee consumption at home, by type, Black adults vs all, April 2016-May 2017
Figure 91: Ground/whole bean coffee consumption at home, by type, form and kind, Black adults vs all, April 2016-May 2017
Figure 92: Ground/whole bean coffee consumption at home, by brand, Black adults vs all, April 2016-May 2017