Abstract
The smoothies market is entering mainstream acceptance but still enjoying the growth trajectory of an exciting young category. However, there are some pockets of resistance among consumers that can be changed into profitable opportunities.
This report provides insight into key issues in the smoothies market:
- The core customer that marketers are neglecting, and how to reach this group
- What chains should be doing to differentiate their brands
- How expansion into healthy snacks and light meals has impacted the market, and why some chains won' t do it
- The two distinct sets of growth drivers, one influencing the made-to-order segment and one fueling the ready-to-drink segment
- How the industry is poised for transformation as boundaries between segments begin to blur
- Who is circumventing the problem of seasonality in the smoothies market
- Upcoming changes in product development, and why it' s necessary to advance the category
- Consumers' disinclination to drink smoothies
For this report, a smoothie is defined as a drink made with fresh fruit, juice, and a thickener such as sherbet, milk or soymilk. This report examines smoothies prepared at smoothie/juice bars and restaurants, as well as ready-to-drink smoothies (bottled, dry and frozen). All drinks marketed or labeled as smoothies are included in this report, except for yogurt drinks which are not included.
This report contains US IRI InfoScan data.
Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- In a nutshell
- Competitive context
- Other beverages offer appealing alternatives to smoothies; consumer awareness is key
- Foodservice providers add smoothies to their menus
- MTO smoothies venture "beyond the four walls"
- Market driver: healthier lives on the horizon
- Market driver: higher-than-average consumption rates among Hispanics
- Market driver: youth
- Segment performance
- Proliferation benefits MTO market
- MTO companies should view unit growth and food rollouts with caution
- Value pricing may separate MTO winners from also-rans
- Functional ingredients are innovation benchmark
- Co-branding: It' s who you know
- New products drive RTD sales
- Naked, Bolthouse, and Odwalla win with functional emphasis
- Retailers hitch their smoothie wagons to the MTO star
- Consumer summary
- Market Size and Forecast
- Key points
- MTO competition will demand honing brand identities
- Innovation key to growth
- Hispanics and healthfulness to drive sales
- Figure 1: Total U.S. sales and forecast of smoothies at current prices, 2002-12
- Figure 2: Total U.S. sales and forecast of smoothies at inflation adjusted prices, 2002-12
- Competitive Context
- Key points
- Other beverages offer appealing alternatives to smoothies; consumer awareness is key
- Rival: Functional beverages
- Rival: Sugar-free beverages
- Rival: Yogurt drinks
- Foodservice providers add smoothies to their menus
- Caveats to growth
- Figure 3: Top ten restaurants, by number of smoothie menu items, Q1 2006, Q3 2006, and Q3 2007
- MTO smoothies venture "beyond the four walls"
- Commodity price increases pressure industry
- Segment Performance
- Key points
- Proliferation benefits MTO market
- New products drive RTD sales, but MTO more innovative
- Crossover will transform the competitive environment
- Figure 4: U.S. sales and forecast of smoothies at current prices, by segment, 2002-12
- Figure 5: U.S. sales of smoothies, by segment, 2005 and 2007
- Segment Performance--Made-to-Order Smoothies
- Key points
- Growth with caveats
- Food can help--but tread with care
- Figure 6: U.S. current sales and forecast of made-to-order smoothies, 2002-12
- Segment Performance--Packaged Smoothies
- Key points
- A marked preference for refrigerated over shelf stable
- New and functional products grow the segment
- Figure 7: U.S. current sales and forecast of packaged smoothies, 2002-12
- Figure 8: U.S. sales of packaged smoothies, refrigerated vs. shelf stable, 2002-07
- Market Drivers
- Setting the stage: healthier lives on the horizon
- Broad-based government action may spur healthier eating habits
- Adult obesity rates plateau
- Enter smoothies: healthy appeal
- Figure 9: Main reason for drinking smoothies, December 2007
- Hispanics exhibit higher-than-average consumption rates
- Figure 10: Incidence of smoothie consumption, by race/ethnicity, December 2007
- Young adults are avid users
- Figure 11: Incidence of smoothie consumption, by age, December 2007
- Target smoothie consumers likely courted by other beverage purveyors
- Leading Made-to-Order Smoothie Companies
- Key points
- Smoothies called upon to perform
- Co-branding: It' s who you know
- Value pricing may separate winners from also-rans
- Figure 12: Smoothie prices, Q3 2006 versus Q3 2007*
- Food, glorious food
- Figure 13: U.S. sales of made-to-order smoothies 2005 and 2007
- Made-to-Order Smoothie Company Analysis--Jamba Juice
- Key points
- From MTO to RTD
- The most important smoothie of the day
- Frequency follows function
- Figure 14: Jamba Juice sales, units, and sales per unit, 2005-07*
- Figure 15: Jamba Juice top 10 menu items, by ingredient and beverage flavor, Q3 2007
- Figure 16: Smoothie prices, Jamba Juice, Q3 2006 versus Q3 2007*
- Made-to-Order Company Analysis--Freshëns
- Key point
- Rebranding incorporates more concepts
- Re-imaging keeps Freshën fresh
- Figure 17: Freshën U.S. unit growth, 2005, 2006, and 2007
- Made-to-Order Company Analysis--Smoothie King
- Key points
- Chain to re-establish focus on functional roots
- Smoothie King no sandwich shop
- Figure 18: Smoothie King sales, units, and sales per unit, 2005-07
- Figure 19: Smoothie King top 10 menu items, by ingredient and beverage flavor, Q3 2007
- Figure 20: Smoothie prices, Smoothie King, Q3 2006 versus Q3 2007*
- Made-to-Order Company Analysis--Planet Smoothie
- Key points
- Raving Brands reveals aggressive expansion plan
- Planet Smoothie ramps up with SoBe Adrenaline Rush
- Eco-strategy distinguishes the brand
- Figure 21: Planet Smoothie sales, units, and sales per unit, 2005-07*
- Figure 22: Planet Smoothie top 10 menu items, by ingredient and flavor, Q3 2007*
- Figure 23: Smoothie prices, Planet Smoothie, Q3 2006 versus Q3 2007*
- Packaged Smoothies--Brand Share Analysis
- Key points
- Naked' s functional emphasis pays off
- Bolthouse, Odwalla, too, benefit through benefits
- V8 Splash all but abandoned
- Coca-Cola acquires fast growing smoothie brand
- Figure 24: FDM brand sales of ready-to-drink smoothies in the U.S., 2006 and 2007
- Brand Qualities
- Jamba takes it to the next level
- Innovation and Innovators
- Functional ingredients propel packaged segment
- Figure 25: Number of menu items, by functional ingredient, Q1 2006, Q4 2006, and Q3 2007
- Figure 26: FDM brand sales of select ready-to-drink smoothies in the U.S., 2005-06
- In search of satiety
- Combating seasonality
- Figure 27: Main reason for drinking smoothies, 2007
- Packaged Smoothie Retail Channels
- Key points
- Retailers hitch their smoothie wagons to the MTO star
- Store-within-a-store concept could cannibalize packaged--or excite
interest in RTD
- Figure 28: U.S. sales of packaged smoothies, by retail channel, 2005 and 2007
- Advertising and Promotion
- Overview
- Healthy/natural
- Jamba: "Put the good in your morning"
- Smoothie King' s joint partnership to combat childhood obesity
- Naked Juice blends activism with wholesome goodness
- Robeks wages America' s Wellness Challenge
- Hip/fun
- Reminder: It' s summer
- Juice It Up!
- Social consciousness
- Planet Smoothie promotes eco-friendly practices
- The Consumer: Smoothie Usage
- Smoothie consumption
- Figure 29: Incidence of smoothie consumption, by type, December 2007
- Figure 30: Incidence of smoothie consumption, by type, by age, December 2007
- Figure 31: Incidence of smoothie consumption, by type, by race/ethnicity, December 2007
- The Consumer: Smoothie Frequency of Use
- Figure 32: Smoothie consumption frequency, by gender, 2005, 2006, and 2007
- Figure 33: Smoothie consumption frequency, by age, December 2007
- The Consumer: Reasons for Drinking Smoothies
- Figure 34: Main reason for drinking smoothies, 2005, 2006, and 2007
- Figure 35: Smoothies versus yogurt drinks, by gender, December 2007
- The Consumer: Smoothie Usage Barriers
- Made-to-order smoothies
- Figure 36: Reasons for not drinking made-to-order smoothies, by gender, 2005, 2006, and 2007
- Bottled RTD smoothies
- Figure 37: Reasons for not drinking RTD smoothies, by gender, 2005, 2006, and 2007
- Figure 38: Reasons for not drinking RTD smoothies, by age, December 2007
- Race and Ethnicity
- Figure 39: Incidence of smoothie consumption, by race/ethnicity, December 2007
- Figure 40: Smoothie type consumed most often, by race/ethnicity, December 2007
- Figure 41: Smoothie consumption frequency, by race/ethnicity, December 2007
- Figure 42: Main reason for drinking smoothies, by race/ethnicity, December 2007
- Figure 43: Smoothies versus yogurt drinks, by race/ethnicity, December 2007
- Figure 44: Reasons for not drinking made-to-order smoothies, by race/ethnicity, December 2007
- Figure 45: Reasons for not drinking RTD smoothies, by race/ethnicity, December 2007
- Figure 46: Made-to-order smoothie brands drunk in the last three months, by race/ethnicity, December 2007
- Figure 47: Bottled RTD smoothie brands drunk in the last three months, by race/ethnicity, 2007
- Appendix: Other Useful Consumer Tables
- Usage
- Figure 63: Incidence of smoothie consumption, by type, 2005, 2006, and 2007
- Figure 64: Incidence of smoothie consumption, by type, by region, December 2007
- Types of smoothies consumed most often
- Figure 65: Smoothie type consumed most often, by gender, December 2007
- Figure 66: Smoothie type consumed most often, by age, December 2007
- Figure 67: Smoothie type consumed most often, by region, December 2007
- Frequency of use
- Figure 68: Smoothie consumption frequency, by household income, December 2007
- Figure 69: Smoothie consumption frequency, by race/ethnicity, December 2007
- Figure 70: Smoothie consumption frequency, by presence of children in the household, December 2007
- Brands used
- Figure 71: Made-to-order smoothie brands drunk in the last three months, 2005, 2006, and 2007
- Figure 72: Made-to-order smoothie brands drunk in the last three months, by region, December 2007
- Bottled RTD smoothie brands used
- Figure 73: Bottled RTD smoothie brands drunk in the last three months, 2005, 2006, and 2007
- Reasons for drinking smoothies
- Figure 74: Main reason for drinking smoothies, by age, December 2007
- Figure 75: Smoothies versus yogurt drinks, by age, December 2007
- Usage barriers
- Figure 76: Reasons for not drinking made-to-order smoothies, by age, December 2007
- Figure 77: Reasons for not drinking made-to-order smoothies, by HH income, December 2007
- Appendix: Trade Associations
