Non-alcoholic Beverages: The Market - US - April 2011
Scope and Themes 
 
What you need to know
This report explores the non-alcoholic beverage market. Although the market exhibited signs of coming out the recession, sales in 2010 largely remained depressed—growing only 0.8% to $50.5 billion during 2009-10 in FDMx. The top three segments in the market show signs of maturity and have been partially responsible for the lackluster growth. As the market displays some signs of stimulation as the economy recovers from the recession, a new threat to growth—inflation—lurks around the corner. In this two-part report on non-alcoholic beverages, Mintel takes an in-depth market-centric view of the non-alcoholic beverage industry. The consumer-centric view is covered in Mintel’s Non-alcoholic Beverages: The Shopper—U.S., May 2011. 

This report explores the following aspects of the market, as well as others: 

●	The size of the market and all of its segments (nine in all), forecasting growth through 2015 for the market, as well as each of the segments. 
●	What factors have inhibited growth, and how to overcome growth-inhibiting obstacles.
●	What segments have managed to beat the recessionary trend, and how they have done so.
●	Which new products have the potential to bring growth to the market.
●	How a brisk pace of acquisitions and alliances has the ability to reshape the market growth.
●	What major marketing themes beverage makers have employed, and how those themes have impacted their brands.

Definition
This report builds on the analysis presented in Mintel’s Non-alcoholic Beverages: The Market—U.S., April 2010, 2009, 2008; July 2006; July 2004, as well as Non-alcoholic Beverages: The Consumer—U.S., March 2010; May 2008; August 2006; August 2004. The report also draws analysis from Mintel’s Non-alcoholic Beverages: A Retail Perspective—U.S., March 2009. 

For the purposes of this report, the following non-alcoholic drinks have been included:

●	Carbonated soft drinks (CSD), including cola and non-cola, regular, and diet
●	Bottled water
●	Coffee, including ground/whole bean, instant/freeze-dried, international flavored instant, ready-to-drink (RTD), and espresso/cappuccino
●	Tea, including RTD, refrigerated, bagged, loose, and instant
●	Thirst quenchers and sports/activity drinks, such as Gatorade or PowerAde
●	Energy drinks, such as Red Bull
●	Sparkling water, seltzer, and natural sodas, such as Mistic, Orangina, and San Pellegrino
●	Milk, including low-fat/skim, whole, chocolate/other flavored, buttermilk, organic, and soy
●	Fruit juice and juice drinks
●	Instant hot cocoa mix
●	Powdered soft drinks, such as Kool-Aid and Country Time, sweetened and unsweetened.

Value figures throughout this report are at retail selling prices (rsp) excluding sales tax unless otherwise stated.

Data sources
Sales data
●	Market Size and Forecast section: FDMx sales based on data from SymphonyIRI Group InfoScan® Reviews
●	Segment Performance section: FDMx sales based on data from SymphonyIRI Group InfoScan® Reviews
●	Retail Channels section: FDMx sales based on data from SymphonyIRI Group InfoScan® Reviews
●	Companies and Brands section: FDMx sales based on data from SymphonyIRI Group InfoScan® Reviews

Advertising creative
All advertising creative provided by VMS, 1500 Broadway, New York, N.Y. 10036. For more information or to order more ads, please contact the Accounts Services Manager, Ad Services, at 1-800-VMS-2002 or sales@vmsinfo.com.

VMS tracks competitive advertising content and activity in key industries across a broad spectrum of local and national media. VMS also captures and measures local and national editorial activity related to industries and brands to provide marketers with a unique view of the total media environment in which they compete.

Abbreviations and terms
Abbreviations
Following is a list of abbreviations used in this report: 

ADHD 	Attention deficit hyperactivity disorder	
BFY 	Better-for-you	
BLS 	Bureau of Labor Statistics	
BMI 	Body mass index	
BPW 	Beverage Partners Worldwide	
CDC 	Centers for Disease Control and Prevention	
CPI 	Consumer price index	
FDA 	Food and Drug Administration	
FDMx 	Food, drug, and mass merchandisers, excluding Walmart (per SymphonyIRI)	
FDMW 	Food, drug, and mass merchandisers, inluding Walmart (per SymphonyIRI)	
GNPD 	Global New Products Database	
GMCR 	Green Mountain Coffee Roasters	
GMO 	Genetically modified organism	
HDPE 	High-density polyethylene	
H-E-B 	Here Everything’s Better (Supermarket)	
HFCS 	High-fructose corn syrup	
Kg 	Kilogram	
MSG 	Monosodium glutamate	
NAB 	Non-alcoholic beverages	
NACS 	National Association of Convenience Stores	
NACP 	North American Coffee Partnership	
NCS/NHCS 	National Consumer Survey/National Hispanic Consumer Survey (Experian Simmons)	
NHANES 	National Healht and Nutrition Examination Survey	
NPF 	National Park Foundation	
O.N.E. 	One Natural Experience	
PET 	Polyethylene terephthalate	
rBST 	Recombinant bovine somatotropin	
RDA 	Recommended daily allowance	
RTD 	Ready-to-drink	
SKU 	Stock keeping unit	
SS 	Shelf stable	
USDA 	U.S. Department of Agriculture	

Terms
Generations are discussed within this report, and they are defined as:

World War II 	The generation born in 1932 or before. In 2011, members of this generation are aged 79 or older.	
Swing Generation 	The generation born between 1933 and 1945. In 2011, members of the Swing generation are between the ages of 66 and 78.	
Baby Boomers 	The generation born between 1946 and 1964. In 2011, Baby Boomers are between the ages of 47 and 65.	
Generation X 	The generation born between 1965 and 1976. In 2011, Generation Xers are between the ages of 35 and 46.	
Millennials* 	The generation born between 1977 and 1994. In 2011, Millennials are between the ages of 17 and 34.	
Matrix Generation** 	The generation born from 1995 to present. In 2011, Matrices are aged 16 or younger.	

* Also known as Generation Y or Echo Boomers 

** Previously known as Post-Millennials

In order to provide an inflation-adjusted price value for markets, Mintel uses the Consumer Price Index (CPI) to deflate current prices. The CPI is defined as follows:

CPI 	The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer’s dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates. 

The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars.

Based on Bureau of Labor Statistics definition.