Abstract
This report is the second in a two-part series on the beverage market. It provides a consumer-centric view of the current market, trends and future opportunities. More specifically, the report addresses the following issues:
- How shifts in the demographic composition of the U.S. are shaping the future of the beverage market
- Which demographic groups have helped drive growth and innovation of specific categories such as bottled water and energy drinks
- Trends in use of various beverages including soda, milk, juice and energy drinks, and how likely usage will increase or decrease in the future
- Which groups are especially heavy consumers of soda, bottled water, energy drinks, milks and other beverages, and how should marketers and product developers target these groups
- How usage varies between race/ethnicity and age segments, and what groups are of particular high value to soft drink, juice and other beverage manufacturers
- Where people typically shop for and purchase beverages
- The proportion of consumers that purchase beverages for immediate consumption and those that purchase beverages for at home consumption
- What decision-making criteria have the most influence on beverage purchase decisions
- How consumers define the healthiness of various beverages
Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Demographic shifts drive increased demand for healthier beverage options
- Market drivers--Demographic factors
- Market drivers--Obesity and the shift from health to "wellness"
- Adult usage
- Hispanics and blacks are likely to drive future growth in soda, energy drinks, and sport drinks
- Price, health promoting attributes, and brand are the most important consideration in purchasing beverages
- Regular soda is perceived the least healthy while bottled water continues to be perceived as the most healthy non-alcoholic beverage
- The key consumers, i.e. adults aged 18-34 are more likely than average to shop at Wal-Mart and convenience stores
- Custom consumer groups
- Market Drivers--Demographic Factors
- Key points
- Age and generational differences drive beverage choice and demand
- Adults aged 18-34 continue to drive growth for most non-carbonated beverages
- Increase in the proportion of 55-74s drives demand for diet drinks and
vegetable juice
- Figure 1: US population, by age, 2002-12
- Growth of the Hispanic and black segments will continue to contribute to
demand for regular soda
- Figure 2: Population, by race and Hispanic origin, 2002-12
- White incomes remained flat between 2000-06, but median black and Hispanic
incomes declined significantly
- Figure 3: Median household income, by race/ethnicity, 1980-2006
- Figure 4: Discretionary household income, by race/ethnicity, 2003
- Primary Hispanic household shoppers are often high-value beverage customers
- Figure 5: Households, by household size and race, 2006
- Market Drivers--Obesity and the Shift from Health to "Wellness"
- Key points
- Obesity concerns drive demand for diet beverages
- Figure 6: Percentage of population who are overweight or obese, 20-74 years of age, 1988-2004
- The dieting craze--consumers diet but obesity rates remain high
- Figure 7: Select non-alcoholic beverage usage by sub-category, dieters vs. general population, May 2006-June 2007
- Governmental efforts to promote healthier living drives demand for BFY beverages
- Some Americans are aspiring to a more holistic notion of health, that some refer to as "wellness"
- Nutrition education in practice is likely to increase in the future
- The People: Usage
- Key points
- Category snapshot: Healthy beverages are rising in popularity as use of
(many) calorie-dense beverages decline
- Figure 8: Summary of trends in personal consumption of soda, bottled water, sports drinks, and energy drinks, 2003-07
- Figure 9: Summary of trends in household consumption of fruit juice/juice drinks, milk, powdered soft drinks, coffee, and tea, 2003-07
- Use of regular carbonated beverages are declining, but convenient,
innovative-flavored, low-calorie soda will continue to gain ground
- Figure 10: Trended personal incidence and frequency of adult soda usage, 2003-07
- Women continue to be the primary consumer for diet soda
- Figure 11: Adult soda usage, by gender, May 2007-June 2007
- Adults aged 18-34 are key regular soda consumers; aging adults turn to
diet soda
- Figure 12: Adult soda usage, by sub-category, by age, May 2006-June 2007
- Fruit juice and juice drinks' household penetration remains steady;
consumption frequency declines
- Figure 13: Household incidence and frequency* of fruit juice and juice drinks usage, 2003-07
- Household consumption of fruit juice/juice drinks declines by the age of
householder
- Figure 14: Adult fruit juice/juice drinks usage, by age, May 2006-June 2007
- Use of healthy milks are on the rise while whole and chocolate milk use is
on the decline
- Figure 15: Household incidence and frequency of milk usage, 2003-07
- Figure 16: Household incidence milk usage, by type, by age, May 2006-June 2007
- Bottled water
- Figure 17: Personal incidence and frequency of drinking bottled water, 2003-07
- On-the-go lifestyle boosts bottled water consumption among young adults
- Figure 18: Personal incidence of drinking bottled water, by age, May 2006-June 2007
- Coffee
- Figure 19: Household incidence and frequency of drinking coffee, 2003-07
- Figure 20: Household incidence of drinking coffee, by age, May 2006-June 2007
- RTD coffee finds equal acceptance among all age groups
- Figure 21: Personal incidence of drinking RTD coffee, by age, May 2006-June 2007
- Tea
- Figure 22: Personal incidence of drinking RTD iced tea and household incidence of using tea bags and loose tea, 2003-07
- Figure 23: Personal incidence of drinking RTD iced tea and household incidence of using tea bags and loose tea, by age, May 2006-June 2007
- Energy drinks and sports drinks continue to rise in popularity
- Figure 24: Personal incidence and frequency of using energy and sports drinks, 2003-07
- Figure 25: Personal incidence of drinking energy drinks and thirst quenchers, by age, May 2006-June 2007
- The People: Kid and Teen Usage
- Key points
- Households with children use more regular soda while those without
children are more likely to favor diet drinks
- Figure 26: Personal incidence and frequency of drinking soda, by presence of children in household, May 2006-June 2007
- Households with children use more milk and fruit juice, but those without
children are more likely to use vegetable juice
- Figure 27: Household incidence and frequency of milk and juice usage, by presence of children in household, May 2006-June 2007
- Households with children drink more bottled water and sparkling water
beverages
- Figure 28: Personal incidence and frequency of drinking bottled water, by presence of children in household, May 2006-June 2007
- Juice among kids is stable, use of soda and thirst quencher is on the
decline
- Figure 29: Trended beverage use of kids aged 6-11, 2003-07
- Teenage soda use expected to decline while use of energy drinks, bottled
water and functional beverages is likely to increase
- Figure 30: Personal incidence of non-alcoholic beverage use among teens, 2003-07
- Teenage girls are heavier users of diet soda and bottled water, while boys
help drive demand for energy drinks
- Figure 31: Beverage use by teenagers 12-17, by gender, May 2006-June 2007
- Hispanic teenagers are heavy users of regular cola, energy drinks and
bottled water
- Figure 32: Beverage use by teenagers 12-17, by race/ethnicity, May 2006-June 2007
- Race and Ethnicity
- Key points
- Black and Hispanics are key soda, sports drinks, and energy drinks
consumers
- Figure 33: Personal incidence of drinking soda, energy and thirst quencher, by race/ethnicity, May 2006-June 2007
- Figure 34: Household incidence of using powdered soft drinks, by race/ethnicity, May 2006-June 2007
- Minorities are somewhat more likely to suffer from lactose intolerance and
more likely to use soy and lactose-free as well as whole milk
- Figure 35: Milk usage, by race/ethnicity, May 2006-June 2007
- Minorities more likely to drink refrigerated fruit juice, and whites are
somewhat more likely to drink vegetable juice
- igure 36: Fruit juice usage, by race/ethnicity, May 2006-June 2007
- Minorities more likely to drink instant coffee and RTD coffee drinks while
whites are more likely to use whole bean gourmet coffee
- Figure 37: Household incidence of using coffee, by race/ethnicity, May 2006-June 2007
- Figure 38: Personal incidence of drinking RTD coffee, by race/ethnicity, May 2006-June 2007
- Tea
- Figure 39: Tea usage, by race/ethnicity and sub-category, May 2006-June 2007
- The People: Beverage Purchase Decision Drivers
- Key points
- Health, price and brand are critical drivers in beverage decisions
- Figure 40: Factors that "usually" drive beverage decisions, by age, March 2008
- Asians are more price conscious while whites are more likely to watch
their waistlines, and blacks seek portion control packaging
- Figure 41: Factors that "usually" drive beverage decisions, by race/ethnicity, March 2008
- Perceptions of diet beverages
- Figure 42: Opinions about artificial sweeteners, by income, March 2008
- The People: How Beverages are Perceived and Evaluated
- Key points
- Health-related beverage rankings
- Consumers consider plain bottled water as the healthiest beverage option
- Figure 43: Beverages perceived as most healthy (soda, energy, water, juice grouping), by income, March 2008
- Figure 44: Beverages perceived as most healthy (milks and functional drinks), by income, March 2008
- "Least healthy" beverage ranking
- Figure 45: Beverages perceived as least healthy (soda, energy, water, juice grouping), by household income, March 2008
- Figure 46: Beverages perceived as least healthy (milks and functional drinks), by household income, March 2008
- "Most calories" beverage ranking
- Figure 47: Beverages perceived as having the most calories (soda, energy, water, juice grouping), by income, March 2008
- Figure 48: Beverages perceived as having the most calories (milks and functional drinks), by income, March 2008
- Most convenient nutrition beverage ranking
- Figure 49: Beverages perceived as providing the most convenient nutrition (soda, energy, water, juice grouping), by income, March 2008
- Figure 50: Beverages perceived as providing the most convenient nutrition (milks and functional drinks), by income, March 2008
- Fits lifestyle goals
- Figure 51: Beverages perceived as the best fit with lifestyle goals such as maintaining stamina (soda, energy, water, juice grouping), by income, March 2008
- Figure 52: Beverages perceived as the best fit with lifestyle goals such as maintaining stamina (milks and functional drinks), by income, March 2008
- Thirst quenching
- Figure 53: Beverages perceived as being the best thirst quenchers (soda, energy, water, juice grouping), by income, March 2008
- Figure 54: Beverages perceived as being the best thirst quenchers (milks and functional drinks), by income, March 2008
- Energy
- Figure 55: Beverages perceived as providing the most energy (soda, energy, water, juice grouping), by income, March 2008
- Figure 56: Beverages perceived as providing the most energy (milks and functional drinks), by income, March 2008
- Has the most exciting advertising
- Figure 57: Beverages perceived as having the most exciting advertising (soda, energy, water, juice grouping), by income, March 2008
- Figure 58: Beverages perceived as having the most exciting advertising (milks and functional drinks), by income, March 2008
- The People: Retail Channel Use and Where Beverages are Consumed
- Key points
- Figure 59: Channels where non-alcoholic beverages have been bought in the past week, by age, March 2008
- Figure 60: Channels where non-alcoholic beverages have been bought in the past week, by income, March 2008
- At home consumption
- Figure 61: Beverages purchased for at home consumption in past month, by age, March 2008
- Immediate consumption
- Figure 62: Beverages purchased for immediate consumption in the past month, by age, March 2008
- Figure 63: Proportion of beverages purchased for immediate consumption in past month, by income, March 2008
- Appendix: Cohort Definition
- Figure 90: Married couples cohorts
- Figure 91: Single women cohorts
- Figure 92: Single men cohorts
- Appendix: Other Useful Consumer Tables
- Decision-making drivers
- Figure 93: Factors that "usually" drive beverage decisions, by gender, March 2008
- Figure 94: Factors that "usually" drive beverage decisions, by household income, March 2008
- Figure 95: Detailed tables of responses to decision-making criteria questions, by age, March 2008
- Figure 96: Detailed tables of responses to decision-making criteria questions, by age, March 2008
- Appendix: Trade Associations
