Nutrition Drinks - US - February 2020

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Market overview
Figure 1: Total US sales and fan chart forecast of nutrition and weight loss drinks, at current prices, 2014-24
Top takeaways
Managing weight top user motivation, also most desired purchase driver
More protein, less sugar
Beverage categories getting blurrier
The issues
Majority of non-users don’t feel the need for nutrition drinks
Figure 2: Consumption of weight loss, nutrition or meal replacement drinks, November 2019
People are limiting sugar, especially as they age
Figure 3: Importance of low- and no-added sugar label claims on purchase of weight loss, nutrition or meal replacement drinks, by age, November 2019
Cross-category competition continues to increase
Figure 4: Desired health benefits in nutrition, meal replacement or weight loss drinks, November 2019
The opportunities
Don’t forget the protein
Figure 5: Importance of label claims on purchase of nutrition, meal replacement or weight loss drinks, November 2019
Expand appeal across daypart occasions
Figure 6: Occasions for consuming nutrition, meal replacement or weight loss drinks, November 2019
Missed opportunities to market to households with older adults
Figure 7: Types of nutrition drinks consumed in household, by age, November 2019
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Sales predicted to slowly but steadily rise
Nutrition drinks drive the market
Drinks most sought through alternative channels
Functionality sought across food and drink categories
Plant-based for the future
Personalized options will only increase in demand
Shifting views on weight management challenge major segment growth
Many find nutrition drinks an unnecessary expense
Processed foods seen as less nutritious than fresh
MARKET SIZE AND FORECAST
Sales predicted to slowly but steadily rise
Figure 8: Total US sales and fan chart forecast of nutrition and weight loss drinks, at current prices, 2014-24
Figure 9: Total US sales and forecast of nutrition and weight loss drinks, at current prices, 2014-24
MARKET BREAKDOWN
Weight loss and nutrition drinks segments both growing
Figure 10: Total US retail sales and forecast of nutrition and weight loss drinks, by segment, at current prices, 2014-24
Most seek nutrition drinks from alternative retailers
Figure 11: Total US retail sales of nutrition and weight loss drinks, by channel, at current prices, 2014-19
MARKET PERSPECTIVE
Functionality sought across food and drink categories
Personalized options will only increase in demand
Figure 12: Jenny Craig DNA Decoder plan, 2020
Plant-based for the future
Figure 13: Importance of plant-based label claim on nutrition, meal replacement or weight loss drinks, by age, November 2019
MARKET FACTORS 
Weight management an ongoing issue
Many find nutrition drinks an unnecessary expense
Figure 14: Nutrition drinks are too expensive, by household income, November 2019
Processed foods with preservatives seen as less nutritious
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Top two players lose market share to others
SlimFast cashes in on keto craze
Plant-based offerings continue to gain momentum
High-protein offerings offset losses for legacy brands
Kellogg drops out of sight in weight loss segment
Flavor innovation can help brands stand out
Brands on a mission have potential to thrive moving forward
COMPANY AND BRAND SALES OF NUTRITION AND WEIGHT LOSS DRINKS
Premier Protein, other brands chip away at market share
Figure 15: Multi-outlet sales of nutritional drinks, by leading companies and brands, rolling 52 weeks 2018 and 2019
Key players in weight loss use diet trends to their advantage
Figure 16: Multi-outlet sales of weight loss drinks, by leading companies and brands, rolling 52 weeks 2018 and 2019
WHAT’S WORKING
SlimFast cashes in on keto craze
Figure 17: Multi-outlet sales of weight loss drinks, by total segment, total SlimFast and SlimFast Keto, rolling 52 weeks 2018 and 2019
Figure 18: SlimFast Keto product examples
Plant-based offerings continue to gain momentum
Figure 19: Multi-outlet sales of nutritional drinks, by total segment and select plant-based brands, rolling 52 weeks 2018 and 2019
Figure 20: Plant-based nutrition drinks product examples
WHAT’S STRUGGLING
High-protein offerings offset losses for legacy brands
Figure 21: Multi-outlet sales of nutritional drinks, by total segment, total Boost and Boost High Protein, rolling 52 weeks 2018 and 2019
Figure 22: Product examples, Boost High Protein and Ensure Max
Kellogg drops out of sight in weight loss segment
Figure 23: Multi-outlet sales of weight loss drinks, by Kellogg Co, 2016-19
WHAT TO WATCH
Flavor innovation can help brands stand out
Figure 24: Top flavors, weight management nutrition and meal replacement drinks, product launches 2019
Figure 25: Flavor innovation product examples, Koia, Remedy Organics and Premier Protein Clear
Food brands crossing over to RTD drinks
Figure 26: Crossover product example, Quest Nutrition
Brands on a mission have potential to thrive moving forward
Figure 27: Ethical product examples, REBBL and Huel
THE CONSUMER – WHAT YOU NEED TO KNOW 
Just under half of households consume nutrition drinks
Most don’t feel the need for nutrition drinks
Overall health and weight management key motivators for consumption
Weight management, general wellness most desired health benefits
The most important time of the day?
Shoppers demand more protein, less sugar
Many paths to personalization
NUTRITION DRINKS – HOUSEHOLD CONSUMPTION
Less than half of households consume any nutritional drinks
Figure 28: Consumption of nutrition, meal replacement or weight loss drinks, November 2019
RTD nutrition drinks lead the pack, but upgrades may be in order
Figure 29: Types of nutrition drinks consumed in household, November 2019
Middle-income households most likely to consume nutrition drinks
Figure 30: Types of nutrition drinks consumed in household, by household income, November 2019
Appealing to parents has multigenerational benefits
Figure 31: Types of nutrition drinks consumed in household, by parental status, November 2019
Hispanic households overindex for nutrition drink use
Figure 32: Types of nutrition drinks consumed, by Hispanic origin, November 2019
NUTRITION DRINKS – INDIVIDUAL CONSUMPTION
Make nutrition drinks a family affair
Figure 33: Household usage of nutrition drinks, November 2019
Usage spans the ages, but opportunities remain
Figure 34: Types of nutrition drinks personally consumed by respondent, by age, November 2019
Gender has some impact on drink choices
Figure 35: Household usage of nutrition drinks – consumed by respondent, by gender, November 2019
REASONS FOR CONSUMPTION
Weight management and overall health key motivators for consumption
Figure 36: Reasons for consumption of nutrition drinks, November 2019
A quick, tasty, healthy boost
Figure 37: Reasons for consumption of nutrition drinks – healthy snacking, convenience, energy, taste – by age, November 2019
DESIRED HEALTH BENEFITS
Weight management leads category perceptions
Figure 38: Desired health benefits in nutrition, meal replacement or weight loss drinks, November 2019
Weight management key benefit for all segments
Figure 39: Desired health benefits in nutrition, meal replacement or weight loss drinks, general wellness and weight management, November 2019
Women more driven than men by weight management
Figure 40: Desire for weight management benefit, by age and gender, November 2019
Deliver on multifunctional benefits
Figure 41: TURF analysis – desired health benefits, November 2019
Turf Methodology
NUTRITION DRINKS – BARRIERS TO USAGE
Non-users see nutrition drinks as unnecessary
Figure 42: Barriers to usage of nutrition drinks, November 2019
Barriers to use vary by income level
Figure 43: I don’t need to drink nutrition drinks, nutrition drinks are too expensive, by household income, November 2019
Middle-aged adults most put off by sugar content
Figure 44: Nutrition drinks have too much sugar, by gender and age, November 2019
CONSUMPTION OCCASIONS
The most important time of the day?
Figure 45: Select consumption occasions of nutrition, meal replacement and weight loss drinks, November 2019
Swapping drinks for meals
Figure 46: Consumption occasions of nutrition drinks – any meal, snack or workout, by segment, November 2019
INFLUENCE OF LABEL CLAIMS
Shoppers demand high protein, less sugar
Figure 47: Importance of label claims – high-protein, no added/low-sugar, low-carb – on purchase of nutrition, meal replacement or weight loss drinks, by age, November 2019
Organic and plant-based options don’t resonate among adults aged 55+
Figure 48: Importance of label claims – organic, plant-based – on purchase of nutrition, meal replacement or weight loss drinks, by age, November 2019
Five claims that can bridge the age gap
Figure 49: TURF analysis – influence of label claims, November 2019
TURF Methodology
ATTITUDES TOWARD NUTRITION DRINKS
Many paths to personalization
Figure 50: Interest in personalized nutrition drinks, by consumers who purchase nutrition, meal replacement or weight loss drinks, November 2019
Figure 51: Interested in personalized nutrition drinks, by age, November 2019
Demand exists for more flavor options
Figure 52: Desire for more flavor varieties, by adults whose households purchase nutrition, meal replacement or weight loss drinks, November 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
APPENDIX – THE MARKET 
Figure 53: Total US sales and fan chart forecast of nutrition drinks, at current prices, 2014-24
Figure 54: Total US sales and fan chart forecast of weight loss drinks, at current prices, 2014-24
Figure 55: Total US retail sales and forecast of nutrition and weight loss drinks, at inflation-adjusted prices, 2014-24
Figure 56: Total US retail sales of nutrition and weight loss drinks, by segment, at current prices, 2017 and 2019
Figure 57: Total US retail sales and forecast of weight loss drinks, at current prices, 2014-24
Figure 58: Total US retail sales and forecast of weight loss drinks, at inflation-adjusted prices, 2014-24
Figure 59: Total US retail sales and forecast of nutritional drinks, at current prices, 2014-24
Figure 60: Total US retail sales and forecast of nutritional drinks, at inflation-adjusted prices, 2014-24
APPENDIX – RETAIL CHANNELS  
Figure 61: Total US retail sales of nutrition and weight loss drinks, by channel, at current prices, 2017 and 2019
Figure 62: US supermarket sales of nutrition and weight loss drinks, at current prices, 2014-19
Figure 63: US drugstore sales of nutrition and weight loss drinks, at current prices, 2014-19
Figure 64: US sales of nutrition and weight loss drinks through other retail channels, at current prices, 2014-19
APPENDIX – KEY PLAYERS  
Figure 65: Multi-outlet sales of nutrition and weight loss drinks, by leading companies, rolling 52 weeks 2018 and 2019
APPENDIX – THE CONSUMER
Figure 66: Table - TURF analysis – desired health benefits, November 2019
Figure 67: Table - TURF analysis – influence of label claims, November 2019
TURF Methodology