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Hispanics: Non-alcoholic Beverages - CSDs & Juice/Juice Drinks - US - March 2021

OVERVIEW
What you need to know 
Key issues covered in this Report
Definition 
Market context
Economic and other assumptions 
COVID-19: US context
EXECUTIVE SUMMARY 
Top takeaways
Market overview 
Impact of COVID-19 on Hispanics and non-alcoholic beverages
Figure 1: Short-, medium- and long-term impact of COVID-19 on Hispanics and non-alcoholic beverages, February 2021
Opportunities and challenges
Understand what purchase responsibility means to Hispanic men and women to achieve relevance
Figure 2: Hispanics’ responsibility for purchasing non-alcoholic beverages, by gender, and select key factors for non-alcoholic beverages, by purchase responsibility and gender, January 2021
Ease the guilt associated with drinking soda 
Figure 3: Attitudes toward soda, by gender and age, January 2021
Use functional claims to build juice brands 
Figure 4: Juice and juice drinks purchase motivators, indexed to all, January 2021
Contextualize reduced sugar and zero sugar 
Figure 5: Sugar content as a factors for non-alcoholic beverages, by gender and age, January 2021
THE MARKET – KEY TAKEAWAYS
Hispanics can’t be ignored 
COVID-19 impacted drinking dynamics 
Hispanics are cautious about the recovery
Brand strategies need tweaks to resonate among Hispanics 
HISPANICS BY THE NUMBERS 
The size of the Hispanic population and its growth trajectory points to opportunities 
Figure 6: US population, by race and Hispanic origin, 2016-26
Figure 7: US population distribution across age groups, by Hispanic origin, 2021
Larger household sizes demand more variety of non-alcoholic beverages 
Figure 8: Average number of people per household, by race and Hispanic origin, 2020
Figure 9: Households with related children under 18 in the household, by race and Hispanic origin of householder, 2020
MARKET VALUE INDICATORS 
Hispanics spend an estimated $17 billion on non-alcoholic beverages at home 
Figure 10: Total US retail on non-alcoholic beverages, at current prices, by Hispanic origin, 2015-20
Impact of COVID-19 on Hispanics and non-alcoholic beverages
Figure 11: Short-, medium- and long-term impact of COVID-19 on Hispanics and non-alcoholic beverages, February 2021
Short term
Figure 12: Changes in behavior regarding non-alcoholic beverages, by household income, January 2021
Recovery
MARKET FACTORS 
Hispanics are value-oriented consumers
Figure 13: Median US household income, by race and Hispanic origin of householder, 2019
Figure 14: US household income distribution, by race and Hispanic origin of householder, 2019
Unemployment is improving, but challenges persist
Figure 15: Seasonally adjusted unemployment, total US vs Hispanics, January 2007-January 2021
Figure 16: Consumer Sentiment Index, January 2007-February 2021
Prices of non-alcoholic beverages forecast to increase more than average
Figure 17: Changes in Consumer Food Price Indexes, 2018 through 2021
MARKET OPPORTUNITIES 
Global Trend Drivers influence Hispanics’ non-alcoholic beverage choices
Figure 18: Mintel Trend Drivers and Pillars – Wellbeing, Experiences, Value
Natural claims are more relevant than health and wellness claims 
Hispanic families bring opportunities but also fragmentation 
Value needs context 
COMPETITIVE STRATEGIES
Make flavor part of your story
Figure 19: Current non-alcoholic beverage flavors consumed, by race and Hispanic origin, indexed to all, November 2019
Low sugar &amp; zero sugar products need to prove their flavor
Plastic bottles: share the improvements
Figure 20: Snapple Facebook post, January-February, 2021
Figure 21: Current non-alcoholic beverage flavors consumed, by race and Hispanic origin, indexed to all, November 2019
THE CONSUMER – KEY TAKEAWAYS 
Purchase responsibility means something different by gender 
Hispanics purchase almost six types of beverages on average 
Half of Hispanics claim to stick to the beverages they like 
Creating associations with occasions helps brands stand out
Brands need to encompass flavor, value and family preferences 
Hispanics prefer real sugar over artificial sweeteners in soda 
Soda can create tension within the home
In juice, brand gives functional claims a voice
NON-ALCOHOLIC BEVERAGES SHOPPING RESPONSIBILITY
Not all responsibility is created equal
Figure 22: Hispanics’ responsibility for purchasing non-alcoholic beverages, by gender, January 2021
Figure 23: Select key factors for non-alcoholic beverages, by sole responsibility and gender, January 2021
Figure 24: Profile of Hispanics who take sole responsibility, indexed to all, January 2021
NON-ALCOHOLIC BEVERAGE PURCHASES
Larger households purchase variety 
Figure 25: Types of non-alcoholic beverages purchased in the last year, January 2021
Figure 26: Non-alcoholic beverages Hispanics purchased in the last year, by household size, January 2021
Figure 27: Non-alcoholic beverages Hispanics purchased in the last year, by language spoken at home, January 2021
Coffee: there are opportunities for premium blends and gadgets 
Figure 28: Net perceived change in purchases of coffee vs a year ago, by select demographics, January 2021
Bottled water: there is a need for differentiation 
Figure 29: Net perceived change in purchases of bottled water vs a year ago, by select demographics, January 2021
Figure 30: Hispanics’ attitudes toward bottled water, net – any agree, indexed to all, November 2019
100% fruit juice: the children will like it 
Figure 31: Net perceived change in purchases of 100% fruit juice vs a year ago, by parental status, January 2021
Figure 32: Hispanics’ attitudes toward juice and juice drinks, net – any agree, indexed to all, April 2020
Regular soda: younger Hispanic men embrace it 
Figure 33: Net perceived change in purchases of regular soda vs a year ago, by gender and age, January 2021
Figure 34: Hispanics’ attitudes toward carbonated soft drinks, net – any agree, indexed to all, January 2021
LOYALTY TOWARD NON-ALCOHOLIC BEVERAGES
Loyalty: build it over time 
Figure 35: Attitudes and behaviors toward non-alcoholic beverages – loyalty, January 2021
Figure 36: Attitudes and behaviors toward non-alcoholic beverages – loyalty, by select demographics, January 2021
NON-ALCOHOLIC BEVERAGE ASSOCIATIONS
Hispanics associate soda and juices with meaningful occasions 
Figure 37: Correspondence Analysis – Symmetrical map – beverage usage occasions, January 2021
Figure 38: Beverage usage occasions, January 2021
Figure 39: Sprite Facebook posts, February 2021
KEY FACTORS FOR NON-ALCOHOLIC BEVERAGES
Brands need to encompass flavor, value and family preferences
Figure 40: Key factors for non-alcoholic beverages, January 2021
Figure 41: TURF Analysis – Important factors, January 2021
Figure 42: Key factors for non-alcoholic beverages, by language spoken at home, January 2021
Figure 43: Key factors for non-alcoholic beverages, by Hispanics with sole purchase responsibility and gender, January 2021
ATTITUDES TOWARD SODA
Does the type of soda sweetener matter?
Figure 44: Attitudes toward soda sweeteners, indexed to all, January 2021
Figure 45: Attitudes toward soda sweeteners, by gender and age, January 2021
Hispanic moms can veto CSDs at home
Figure 46: Attitudes toward soda, indexed to all, January 2021
Figure 47: Attitudes toward soda, by gender and age, January 2021
JUICE AND JUICE DRINKS: PURCHASE MOTIVATORS
Hispanics are more likely to listen to functional claims from brands they know 
Figure 48: Juice and juice drinks purchase motivators, indexed to all, January 2021
Figure 49: TURF Analysis – Appealing juice attributes, January 2021
Figure 50: Juice and juice drinks purchase motivators, by age, January 2021
Figure 51: Juice and juice drinks purchase motivators, by household income, January 2021
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
A note about acculturation
APPENDIX – MINTEL TREND DRIVERS
Figure 52: Mintel Trend Drivers and Pillars
APPENDIX – CONSUMER
Correspondence analysis methodology
TURF methodology
Figure 53: Table – TURF Analysis – Important factors, January 2021
Figure 54: Table – TURF Analysis – Appealing juice attributes, January 2021

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