This report provides the results for the Hot 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 Hot 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 Hot 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. Hot 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: Coffee, Tea, and Other Hot Drinks.
- 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
- In the US Hot Drinks market, Other Hot Drinks is the smallest market both in terms of value as well as volume. This is due to the undeveloped Other Hot Drinks drinking culture in the US, where consumers prefer Coffee for a Hot Drink.
- Private label has low penetration in the US Hot Drinks market. This is true for all three categories: - Tea, Coffee, and Other Hot Drinks. Private label penetration is highest in the Other Hot Drinks category and at lower, but similar, levels in Tea and Coffee. Branded Hot Drinks have such strong brands that there is little space for private label brands to penetrate. Private label companies can work towards improving their products and visibility to achieve get better penetration.
- The overall consumption of Other Hot Drinks is small in comparison to Coffee. Analyzing the consumption frequency of Other Hot Drinks, the share of Heavy users is highest amongst Older Consumers and lowest amongst Kids and Babies. Light consumption is the most common across all age groups, indicating that Other Hot Drinks are consumed occasionally and age is not a significant factor in the consumption frequency of Other Hot Drinks.
- Personal space and time is the most important trend in the US Hot Drinks market, influencing the consumption choices of over half of consumers. Strongly linked to this are the Indulgence, Busy Lives, and Experience Seeking trends, the second, fourth, and fifth most important trends, highlighting the role of Hot Drinks in providing a relaxing break in consumers' days.
- Older Consumers constitute the largest share of the US Hot Drinks market, followed by Mid-Lifers. This is in line with the general understanding that it is the older age groups that consume the most Coffee, Tea, and Other Hot Drinks and the younger population prefer cold drinks.
- Marginally, more women consume Tea than men, although the proportion of consumers recording a Heavy consumption frequency is similar in both genders.