The US Soft Drinks Market: What Consumers Drink and Why?




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Product Synopsis

This report provides the results for the Soft Drinks market in the US from Canadean's unique, highly detailed study of consumers' Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG product markets. Its coverage includes, but is not limited to, consumption behaviors, the extent to which consumer trends influence their consumption, the value of the market these trends influence, and brand and private label choices as well as retailer choices. Much of this information can also be analyzed by specific consumer groups, providing hard and fast data on consumers and markets at the product category level.

Introduction and Landscape

Why was the report written?

Marketers in the Soft Drinks market face a major challenge. Understanding market size and segmentation is valuable, but the key to effective targeting is knowing just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends. This data report solves these problems by providing survey-based data on consumer trends and consumer groups, and market data that shows the exact size of consumer groups, how much of the Soft Drinks market they account for, and which consumer trends drive their behavior.

What is the current market landscape and what is changing?

As consumer confidence increases with the economic recovery, consumer trends will be directly affected. Since the global financial crisis of 2008-2009 the retail market has been characterized by an increase in the amount of discounted and own-brand products. Most Soft Drinks are not considered essential items and therefore consumption patterns have been negatively affected. As economic and market recovery continues over 2012, consumption patterns will record a positive trend in both the medium and heavy frequency bands and the amount of non-users should decrease.

What are the key drivers behind recent market changes?

Consumers' uptake of products and the influence of consumer trends are fundamental causes of change in markets - making knowing what these trends are and the extent of their influence crucial. The survey-based data provided in this report examines over 20 consumer trends that affect the market and examines the share of consumption across 26 consumer groups. This data provides a detailed insight into exactly who the consumer is and just how much impact the latest consumer trends are having.

What makes this report unique and essential to read?

The data provided is unique in the market as it tracks consumer behavior through to its actual value impact on a product market. This provides readers with a unique data analysis of the market, allowing marketing tactics and strategy to be updated in line with the very latest consumer behaviors.

Key Features and Benefits

  • Consumer data, based upon proprietary surveys and then consumer group tracking and modeling for the following specific categories: Bottled Water, Sparkling Soft Drinks, Concentrates, Functional Drinks, Smoothies, Juices, and Ready to Drink Tea and Coffee.
  • Detailed consumer segmentation covering over 26 consumer groups, 20 consumer trends, and consumption frequency for each product category.
  • Consumer penetration for brands and private labels, based upon the original survey and then subsequent consumer tracking and modeling.
  • Unique retailer choice data at the product category level, based upon the original survey and then subsequent consumer tracking and modeling.

Key Market Issues

  • The consumption of Concentrates in the US is much lower compared with other Soft Drinks categories such as Juices and Sparkling Soft Drinks. The category records a large number of Non-Users across all age groups and very few Heavy users. 
  • Similar to the Concentrates market, the US Smoothies market is also not a large market in comparison to other Soft Drinks. The market share of the Kids and Babies age group is almost double that of Tweens and Early Teens, showing that the health benefits, of providing children with vital nutrients such as vitamins, associated with Smoothies only affect the youngest consumers.
  • Bottled water is the third biggest Soft Drinks market in the US. Usage patterns do not vary significantly across age groups, although the number of Non-users increases with age. This is because Bottled Water consumption is linked to physical activity and sports, participation of which declines with age.

Key Highlights

  • Health is the most important trend in the Functional drinks market, highlighting the importance of communicating the specific health benefits products in this category provide to consumers. 
  • Juices constitutes the second largest segment in the overall Soft Drinks market. Kids and Babies account for a significant share of the market, featuring the Heaviest users and the fewest Non-users. Parents play a key role in this, as they encourage their children to consume Juices because of their high vitamin content.
  • Private labels account for more than one-fifth of the Bottled Water market, the highest private label penetration in the US Soft Drinks market. The relatively low penetration of private labels across the US Soft Drinks market is an indicator of both the strength of the brands and the current lack of investment by retailers in strong private label products.