Hydration & Refreshment

SUMMARY

Overview

Introduction

Consumers are more aware of the health benefits of staying hydrated and, importantly for consumer packaged goods' players, this is impacting product choices. Drinking more water is one of the key lifestyle changes consumers have made to improve their health. The refreshment trend has grown as a result of a number of factors, notably its appeal to emerging consumer groups

Scope

• Comprehensive analysis of consumer values, attitudes and behaviors with regard to hydration & refreshment and related consumption
• Extensive primary and secondary research of consumers and senior industry figures to uncover the latest thinking and reveal emerging opportunities
• Detailed recommendations offering practical strategies based on the trends and insights uncovered in the report

Report Highlights

The hydration trend is most notable in non-alcoholic beverage segments, particularly bottled water and functional drinks where both categories have seen phenomenal growth due to consumers' increasing health concerns. Meanwhile, refreshment is important across a number of categories and is most mature in beer, cider and bottled water segments

Per capita bottled water occasions are highest in countries where drinking bottled water is more culturally established such as in Italy. However, countries with traditionally lower sales in bottled water such as the UK and Sweden are seeing extraordinary growth. UK overall bottled water occasions grew at a CAGR of 10% between 2002 and 2007

There are a number of misconceptions about hydration and what consumers think they need to drink to be hydrated. Many consumers lack education of which foods and drinks 'count' towards their daily hydration needs. Also, contradictory evidence regarding the impact of caffeine drinks on (de)hydration has added to this confusion among consumers

Reasons to Purchase

• Understand the attitudes driving and inhibiting hydration & refreshment consumer needs and manufacturers' innovation efforts
• Improve your marketing by following best-practice guidelines enabling more effective targeting with on-trend products and relevant communications
• Get inspired by viewing best practice examples of effective innovation and marketing based on hydration and refreshment trends

TABLE OF CONTENTS

• Overview
  • Catalyst
  • Summary
• Table of Contents
• Table of figures
• Table of tables
• Analysis
  • Introduction
    • Drivers of the hydration and refreshment trends
  • Consumer segmentation
    • Women consider hydration more important than men
    • Older consumers are at most risk from dehydration
    • Hydration is key to a child's development
    • Refreshment is most important for emerging consumer groupsin alcoholic drinks
  • TREND: Hydration is becoming increasingly important toconsumers
    • Bottled water occasions are increasing, taking anincreasing 'share of throat'
      • Bottled water now accounts for half of all soft drinkconsumption in Europe
    • Environmental concerns may encourage greater tap waterconsumption in the future
    • Take-outs and implications: The need for instant andcontinuous hydration has grown in consumer importance
  • TREND: Refreshment is an increasingly key element ofbeverage consumption
    • Take-outs and implications: refreshment has gainedimportance due to emerging consumer groups and occasions
  • INSIGHT: There have been notable success stories of brandstargeting hydration and refreshment needs
    • Sprite obeys consumer thirst for hydration and refreshment
    • Mizone appeals to consumers searching for instantaneoushydration
    • Blue moon focuses on refreshment and drinkability
    • Take-outs and implications: hydration and refreshment arekey attributes in providing success in the beverage industry
  • INSIGHT: Hydration and refreshment trends are important toa number of markets
    • Hydration and refreshment trends are important to a numberof beverage markets
    • Hydration and refreshment can also be important to foodand personal care markets
    • Take-outs and implications: hydration and refreshmenttrends are most important to beverage markets yet should not be overlookedin food and personal care
  • INSIGHT: A number of factors affect people's perception ofhow refreshing a particular beverage may be
    • Take-outs and implications: key elements of refreshmentshould be met when creating drinkability
  • INSIGHT: There are misconceptions about what consumersthink they 'need' to drink
    • Awareness of hydration needs are high but so is confusionand non-compliance
    • Take-outs and implications: educating consumers andproviding hydration solutions will prove successful going forward
  • INSIGHT: Hydration directly affects mental and physicalperformance
    • Take-outs and implications: the mental and physicaleffects of hydration are important to a number of consumers
• Action points
  • ACTION: Educate and clearly inform consumers abouthydration
    • Target groups with the greatest need for hydration
  • ACTION: Enhance the refreshment factor of beverages
  • ACTION: Use hydration and refreshment as a means todifferentiate and premiumize your product
    • Emphasize the positive impact of instant and continuoushydration
    • Avoid compromising or creating trade-offs by neglectingother need-states
• APPENDIX
  • Definitions
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• List of Tables
  • Table 1: Overall and per capita bottled water occasions,Europe & US, by country, 2002-2012
  • List of Figures
  • Figure 1: There are a number of drivers to the hydrationand refreshment trend
  • Figure 2: Consumers who responded 'important' or 'veryimportant' to the question: "How important are the following dietaryapproaches - Drinking plenty of water?"
  • Figure 3: Americans associate a healthy lifestyle morewith bottled water than any other bottled beverage
  • Figure 4: Sprite marketing materials focus heavily onhydration and refreshment
  • Figure 5: Mizone Rapid focuses on instant hydration
  • Figure 6: Blue moon offers a refreshing easy beerdrinking experience
  • Figure 7: Analysis of the current importance of thehydration trend to non-alcoholic beverage markets and future forecast forimportance in five years from now
  • Figure 8: Analysis of the current importance of therefreshment trend to non-alcoholic beverage markets and future forecastfor importance in five years from now
  • Figure 9: Analysis of the current importance of therefreshment trend to alcoholic beverage markets and future forecast forimportance in five years from now
  • Figure 10: There exists market opportunity in addressingconsumers' skin concerns with regard to hydration
  • Figure 11: A number of factors affect the refreshmentlevel of a beverage
  • Figure 12: Hydrate20 attempts to educate and informconsumers about the need for hydration and the benefits of the productusing claims backed up by scientific research
  • Figure 13: Hydrating products should be targeted atgroups with the highest need such as children
  • Figure 14: There exists cross market opportunities suchas healthy hydration focused foods
  • Figure 15: Products which offer hydration benefits willallow for a price premium
  • Figure 16: Hydration is important to beauty aids, forboth topical and 'beauty from within' products
  • Figure 17: Ensure that other key need-states are metalong with hydration and refreshment