Beverage Packaging Trends - US - February 2010

SCOPE AND THEMES
What you need to know
Definition
Data sources
Consumer survey data
Advertising clips
Abbreviations and terms
Abbreviations
EXECUTIVE SUMMARY
Sustainability: A primary driver of innovation
Sustainable packaging: A Consumer Perspective
Health and wellness: Demand for nutritional guidance on the rise
Asians are among the most responsive to health claims and green packaging
INSIGHTS AND OPPORTUNITIES
Sustainable packaging industry growing quickly
Sustainable nutrition trend shaping more product and package designs
Obesity and the Obama factor
Consider the risk of redesigning packaging before launching initiatives
Brita and quality reusable bottles could become bigger threat in the future
Figure 1: Brita eco message ad, 2009
Figure 2: Brita’s better for the environment ad, 2010
INSPIRE INSIGHTS
Coca-Cola Packaged in a Plant?
What is it about?
What we’ve seen
Implications
Why not call it 100%?
What is it about?
What we’ve seen
Implications
SUSTAINABILITY: A PRIMARY DRIVER OF INNOVATION
Key points
How are companies going green?
Improving raw materials
Lightweighting
Recycling initiatives
Figure 3: Coca-Cola Open Happiness ad, 2009
Steady increase in recycling behavior reflects growing demand for eco-friendly packaging
Figure 4: Recycling attitudes and behavior, 2002/03-2008/09
Overall number of beverage launches dropped in 2009 but green packaging launches spiked
Figure 5: Beverage launches in the U.S., 2004-09
Figure 6: Launches of beverages with eco-friendly packaging in the U.S., 2004-09
Green packaging becoming especially popular with marketers of soda and fruity drinks
Figure 7: Launches of eco-friendly beverage packaging in the U.S., by beverage category, 2004-09
SUSTAINABLE PACKAGING: A CONSUMER PERSPECTIVE
Key points
Demand for green products remains strong, despite recession
Figure 8: Purchase frequency of green products, 2006-08
Mature adults more likely to recycle but demand for green products strong among young adults
Figure 9: Recycling attitudes and behavior, by education level, July 2007-September 2008
Over-55s somewhat more likely to recycle
Figure 10: Recycling attitudes and behavior, by age, 2009
Most want recyclable, lightweight packaging made with minimal materials
Figure 11: Importance of beverage packaging features, by age, November 2009
Women and young adults generally more willing to pay a premium for green packaging
Figure 12: Willingness to pay more for eco-friendly packaging, by gender, November 2009
Figure 13: Willingness to pay more for eco-friendly packaging, by age, November 2009
SUSTAINABILITY: INNOVATIONS AND INNOVATORS
Some companies emphasize a sustainable, nutrition positioning to optimize appeal
HEALTH AND WELLNESS: NUTRITIONAL GUIDANCE
Key points
Record-high rates of obesity drive demand for portion control and guidance
Figure 14: Trended nationwide (states, DC, and territories) incidence of overweight and obesity, 1995-2007
Southern states have especially high rates of obesity
Figure 15: Highest average state obesity rates (BMI>27.4), by state, 2007
Women more likely to feel overweight and use wellness products
Figure 16: Perception of weight relative to height, by gender, January 2009
Various health claims can be emphasized on packaging to create gender-specific appeal
Figure 17: Reasons for watching diet, by gender, July 2007-September 2008
Need for more fruit and vegetables drives demand for better-for-you beverages and packaging
Figure 18: Average daily per capita calories consumed*, by food group, 1970-2004
Young adults more likely to drink bottled water and use “natural” products
Figure 19: Use of bottled water, natural and organic beverages, by age, November 2009
Affluents more likely to buy bottled water and live a healthy lifestyle
Figure 20: Use of bottled water, natural and organic beverages, by household income, November 2009
Most shoppers want clear health-related messaging that is easy to find and read
Figure 21: Important aspects of beverage labeling, by age, November 2009
More than half of consumers don’t trust company claims
Figure 22: Opinions about beverage labeling, by age, November 2009
Affluents somewhat more likely to understand and trust labeling
Figure 23: Opinions about beverage labeling, by household income, November 2009
Only one in four consumers agree that beverage companies should be able to label products as “nutritious”
Figure 24: Trust in organizations on health and wellness labeling, by age, November 2009
HEALTH AND WELLNESS: LABELING SYSTEMS
Smart Choices: High Hopes Disappointed
Sensible Solutions
Smart Spot
Safeway’s Eating Right
HEALTH AND WELLNESS: INNOVATIONS AND INNOVATORS
Packaging of better-for-you kids’ products often very innovative
Bagged smoothies unique, likely to capture the attention of curious kids
Round/globe shapes for healthy beverages becoming more common
Smaller, concentrated beverages becoming more popular
CONVENIENCE: A CONSUMER PERSPECTIVE
Key points
Convenience and usability often trump sustainability
Figure 25: Maxwell House flavor-lock lid ad, 2009
Figure 26: Importance of beverage packaging features, by age, November 2009
CONVENIENCE: INNOVATIONS AND INNOVATORS
Ergonomic designs provide added convenience
Mixes and concentrates becoming more common
Highly concentrated functional beverages epitomize ease of transport
BEVERAGE CONSUMPTION IN THE HOUSEHOLD
Key points
Young adults generally more likely to consume soda, bottled water and energy drinks
Figure 27: Non-alcoholic beverage purchases, by age, November 2009
Young adults heavy users of single-size containers
Figure 28: Use of single-serving containers, by age, November 2009
Over-55s somewhat less likely to purchase multipacks
Figure 29: Use of multi-serving containers, by age, November 2009
Older respondents somewhat more likely to buy larger containers
Figure 30: Use of multi-serving size packages, by age, November 2009
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Asians more likely to report using better-for-you options
Figure 31: Use of bottled water, natural and organic beverages, by race/Hispanic origin, November 2009
Asians more likely to state that clarity of nutritional and eco-friendly claims are important
Figure 32: Important aspects of beverage labeling, by race/Hispanic origin, November 2009
Asians more likely to report trusting health claims
Figure 33: Opinions about beverage labeling, by race/Hispanic origin, November 2009
Asians more likely to prefer recyclable, minimalistic packaging
Figure 34: Importance of beverage packaging features, by race/Hispanic origin, November 2009
Asians and Hispanics generally most willing to pay a premium for eco-friendly packaging
Figure 35: Willingness to pay more for eco-friendly packaging, by race/Hispanic origin, November 2009
CUSTOM CONSUMER GROUPS
Mature females and Asians of all ages recycle but blacks generally less likely to do so
Figure 36: Recycling attitudes and behavior, by custom consumer groups, 2009
Upscale professionals more likely to recycle and feel a duty to do so
Figure 37: Recycling attitudes and behavior, by Mosaic segments most likely to recycle, 2009
Young women and young Hispanics most likely to pay premium for eco-friendly package; mature males resistant to premiums
Figure 38: Willingness to pay more for eco-friendly packaging*, by custom consumer groups most and least willing to pay a premium, November 2009
Women somewhat more likely to value easy-to-hold packages
Figure 39: Importance of ease of holding and portability, by custom consumer groups, November 2009
CLUSTER ANALYSIS
Grabbers
Packagers
Clarifiers
Cluster characteristics
Figure 40: Beverage packaging clusters, November 2009
Figure 41: Opinions about beverage labeling, by beverage packaging clusters, November 2009
Figure 42: Use of single-serving and multi-serving containers, by beverage packaging clusters, November 2009
Figure 43: Important aspects of beverage labeling, by beverage packaging clusters, November 2009
Figure 44: Importance of beverage packaging features, by beverage packaging clusters, November 2009
Cluster demographics
Figure 45: Beverage packaging clusters, by gender, November 2009
Figure 46: Beverage packaging clusters, by age, November 2009
Figure 47: Beverage packaging clusters, by household income, November 2009
Figure 48: Beverage packaging clusters, by race, November 2009
Figure 49: Beverage packaging clusters, by Hispanic origin, November 2009
Cluster methodology
APPENDIX: OTHER USEFUL CONSUMER TABLES
Beverage packaging/labeling/consumption and attitudes, by household income
Figure 50: Trust in organizations on health and wellness labeling, by household income, November 2009
Figure 51: Important aspects of beverage labeling, by household income, November 2009
Figure 52: Willingness to pay more for eco-friendly packaging, by household income, November 2009
Figure 53: Use of non-alcoholic beverage, by household income, November 2009
Figure 54: Use of single-serving containers, by household income, November 2009
Figure 55: Use of multi-serving containers, by household income, November 2009
Figure 56: Use of multi-serving size packages, by household income, November 2009
Beverage consumption by product sector and packaging type, by race/Hispanic origin
Figure 57: Non-alcoholic beverage purchases, by race/Hispanic origin, November 2009
Figure 58: Use of multipacks, by race/Hispanic origin, November 2009
Figure 59: Use of multi-serving size packages, by race/Hispanic origin, November 2009
Figure 60: Use of single-serving containers, by race/Hispanic origin, November 2009
APPENDIX: TRADE ASSOCIATIONS