RTD Non-carbonated Beverages - US - May 2007

SUMMARY

Abstract

This report on the ready-to-drink (RTD) non-carbonated beverages market comprises fruit juice and drinks; bottled water; sports and energy drinks; and RTD tea and coffee. Mintel provides marketers, manufacturers, distributors and retailers with the window they need to understand this varied and dynamic market.

This report:

• Analyzes the shift underway from carbonated soda to RTD non-carbonated beverages
• Assesses how consumer perceptions of beverage healthfulness drive purchasing behavior
• Details premium and functional trends shaping aspects of the RTD non-carbonated beverage market
• Provides per capita consumption and population usage estimates for specific beverages
• Illustrates which RTD segments are connecting with consumer lifestyles and why
• Informs how major players are adapting to market dynamics via acquisitions and distribution agreements
• Analyzes important demographic indicators, such as younger consumers, blacks and Hispanics
• Shows how consumers engage with the market via packaging, product placement, and word-of-mouth marketing

The report also quantifies the market with estimates on market size, market segmentation, supply structure, and retail distribution.

TABLE OF CONTENTS

Table of Contents

• Scope and ThemesWhat you need to know
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Bottom line
• Health concerns and desire for healthfulness drive market
• Functional component comes on strong
• Younger consumers, blacks and Hispanics drive the market
• Fruit juice and drinks treading water
• Bottled water has momentum
• Energy drinks contribute to robust sports and energy segment growth
• RTD tea gains on health and convenience; coffee rides "Starbucks" effect
• Major manufacturers expand NCB portfolio
• The leader board
• Retail distribution
• Supermarkets
• Wal-Mart
• Convenience stores
• Drug stores
• Consumers motivated by packaging, placement, and coupons to try new beverages
• Focus on gender
• The future is bright
• Market Drivers
• Rising obesity incidence drives growth in RTD non-carbonated beverages
• Obesity among adults
  • Figure 1: Percentage of population who are overweight or obese, 20-74 years of age, 1988-2004
  • Figure 2: Incidence of people currently dieting or spending most of their time trying to lose weight by dieting and counting calories of the food they eat, 2002-06
  • Figure 3: Incidence of drinking various beverages among respondents currently dieting or trying to lose weight by dieting most of the time, 2002-06
  • Figure 4: Per capita consumption of carbonated beverages, bottled water and sports drinks, 2000-05
• Obesity among children--a shift away from soda to non-carbonated beverages
  • Figure 5: Prevalence of obesity among children aged 6-19 years, by age, 1976-2004
  • Figure 6: Incidence of soda and RTD NCB consumption among children aged 6-11, 2002-06
• Health and wellness trend drives growth in functional beverages
• Growing demand for B and other vitamins and minerals
• Antioxidants
• RTD non-carbonated beverages synchronize with consumer lifestyle
• A boost of energy
  • Figure 7: Purpose of drinking energy drinks, February 2007
• Demographic influences
• Young adults drive the market
  • Figure 8: Incidence of drinking RTD NCBs in the past seven days, by age, January-October 2006
  • Figure 9: U.S. population of young adults aged 18-34, by age, 2001-11
• Teens and children positively impact energy drinks market
  • Figure 10: Incidence of drinking RTD non-carbonated drinks by adults, teens and children,
  • Figure 11: U.S. population of teens aged 12-17, 2001-11
• Blacks and Hispanics--key racial/ethnic demographics in the market
  • Figure 12: Incidence of drinking RTD NCBs in the past seven days, by race/ethnicity, January-October 2006
  • Figure 13: Incidence of drinking select RTD non-carbonated beverages among blacks and Hispanics, 2002-06
  • Figure 14: Population, by race and Hispanic origin, 2001-11
  • Figure 15: Hispanic and black purchasing power, 1990-2011
• Need for convenience--a key growth driver
• Market Size and Trends
• Market size
  • Figure 16: Total U.S. FDM retail sales of RTD non-carbonated beverages,
  • Figure 17: Average price per fluid ounce of various RTD non-alcoholic beverages at FDM, 2006
• Wal-Mart estimate
  • Figure 18: Number of regular stores and supercenters opened by Wal-Mart, FY 2001-06
• Market trends
• Product proliferation--fruit juice and drinks lead the number of new products
  • Figure 19: New RTD non-carbonated beverage products, 2002-07
  • Figure 20: New RTD non-carbonated beverages claims, 2002-07
• Market Segmentation
• Introduction
  • Figure 21: RTD non-carbonated beverage sales through FDM*, segmented by type, 2004 and 2006
• Fruit juice and drinks
  • Figure 22: FDM sales of fruit juice and drinks, at current and constant prices, 2001-06
  • Figure 23: FDM volume sales and prices of organge juice, 2001-06
  • Figure 24: Coca-Cola's Simply Orange orange juice TV ad, 2006
• Bottled water
  • Figure 25: FDM sales of bottled water, at current and constant prices, 2001-06
  • Figure 26: Health perception of RTD non-carboanted beverages versus soda, February 2007
  • Figure 27: FDM per gallon price of convenience/PET bottled water for various brands and private labels,
• Sports and energy drinks
  • Figure 28: FDM sales of sports and energy drinks, at current and constant prices, 2001-06
  • Figure 29: FDM* sales of sports drinks and energy drinks, 2001-06
  • Figure 30: Price comparison of single-serve and multipacks for Red Bull, 2007
• RTD tea and coffee
  • Figure 31: FDM sales of RTD tea and coffee, at current and constant prices, 2001-06
  • Figure 32: FDM* sales of RTD tea and RTD coffee, 2001-06
  • Figure 33: Average price per fluid ounce of various RTD non-alcoholic beverages at FDM, 2006
• Supply Structure
• Major manufacturers expand non-carbonated beverage portfolio
• Merger and acquisition activity
• Expansion in distribution for small players
• Companies and brands
  • Figure 34: FDM sales of major manufacturers in the RTD non-carbonated beverage market in the U.S., 2004 and 2006
• Fruit juice and drinks
  • Figure 35: Selected brand sales and market share of fruit juice and drinks at FDM* in the U.S., 2004 and 2006
• Brand sales of bottled water
  • Figure 36: Selected brand sales and market share of bottled water at FDM* in the U.S., 2004 and 2006
• Sports and energy drinks
  • Figure 37: Selected brand sales and market share of sports and energy drinks at FDM* in the U.S.,
• RTD tea and coffee
  • Figure 38: Selected brand sales and market share of RTD tea and coffee at FDM* in the U.S., 2004 and 2006
• Advertising and Promotion
• Introduction
• Cadbury Schweppes North America
• Snapple
  • Figure 39: Snapple Diet tea TV ad, 2006
  • Figure 40: Snapple White tea TV ad, 2006
• The Coca-Cola Company
• Minute Maid
  • Figure 41: Coca-Cola's Minute Maid fruit juice, TV ad, 2006
• Simply Orange
  • Figure 42: Coca-Cola's Simply Orange orange juice TV ad, 2006
• Kraft Foods Inc.
  • Figure 43: Kraft's Capri Sun Fruit Waves TV ad, 2006
• Nestlé USAFigure 44: Nestlé's juicy juice, two TV ads, 2006Ocean Spray
  • Figure 45: Ocean Spray cranberry juice, TV ad, 2006
• PepsiCo Inc.
• Lipton
  • Figure 46: Lipton Green Tea, TV ad, 2006
• Starbucks Frappuccino
  • Figure 47: Starbucks Frappuccino, TV ad, 2006
• Retail Distribution
• Introduction
  • Figure 48: U.S. retail sales of RTD non-carbonated beverages, by channel, 2004 and 2006
• RTD non-carbonated beverage sales including Wal-Mart and convenience stores
  • Figure 49: U.S. retail sales of RTD non-carbonated beverages, by channel, 2006
• Supermarkets
  • Figure 50: U.S. supermarket sales of RTD non-carbonated beverages, at current and constant prices, 2001-06
  • Figure 51: U.S. supermarket sales of RTD non-carbonated beverages, by segment, 2001-06
• Drug stores
  • Figure 52: U.S. drug store sales of RTD non-carbonated beverages, at current and constant prices, 2001-06
  • Figure 53: U.S. drug store sales of RTD non-carbonated beverages, by segment, 2001-06
• Convenience stores
  • Figure 54: U.S. convenience store sales of RTD non-carbonated beverages, at current and constant prices, 2004-06
  • Figure 55: U.S. mass merchandiser store sales of RTD non-carbonated beverages, by segment, 2004-06
• The Consumer: RTD NCB Usage and Frequency of Use
• Summary
• Consumption of RTD non-carbonated beverages
• Frequency of drinking RTD non-carbonated beverages
• Teens and children
• Consumption of RTD non-carbonated beverages
  • Figure 56: Types of RTD beverages consumed, 2002-06
  • Figure 57: Incidence of drinking RTD NCBs in the past seven days, by gender, January-October 2006
  • Figure 58: Incidence of drinking RTD NCBs in the past seven days, by age, January-October 2006
  • Figure 59: Incidence of drinking RTD NCBs in the past seven days, by income, January-October 2006
  • Figure 60: Incidence of drinking RTD NCBs in the past seven days, by race/ethnicity, January-October 2006
  • Figure 61: Incidence of drinking select RTD non-carbonated beverages among blacks and Hispanics, 2002-06
• Frequency of drinking RTD non-carbonated beverages
  • Figure 62: Mean frequency of drinking select RTD NCBs in the past seven days, 2002-06
  • Figure 63: Mean frequency of drinking select RTD NCBs in the past seven days, by gender,
  • Figure 64: Mean frequency of drinking select RTD NCBs in the past seven days, by age, January-October 2006
  • Figure 65: Mean consumption of RTD NCBs in the past seven days, by race/ethnicity, January-October 2006
• Teens and children
  • Figure 66: Incidence of drinking RTD NCBs and soda by adults, teens, and kids, Jan-Oct 2006
• The Consumer: RTD NCB and Soda Health Perceptions
• Summary
• Health perception of RTD non-carbonated beverages versus soda
  • Figure 67: Health perception and lifestyle participation of RTD non-carbonated beverages versus soda, February 2007
  • Figure 68: Health perception of RTD non-carboanted beverages versus soda, by gender, February 2007
  • Figure 69: Health participation of RTD non-carboanted beverages versus soda, part II,
  • Figure 70: Health perception of RTD non-carboanted beverages versus soda, by age, November 2006
  • Figure 71: Health perception of RTD non-carboanted beverages versus soda, part II, by age, November 2006
• The Consumer: RTD NCB Retail Channel Preferences
• Summary
• Choice of retail channel to purchase RTD non-carbonated beverages
  • Figure 72: Choice of retail channel to purchase RTD non-carbonated beverages, February 2007
  • Figure 73: Choice of retail channel to purchase RTD juice, bottled water and RTD tea, by age, February 2007
  • Figure 74: Choice of retail channel to purchase RTD non-carbonated beverages, part II, by age, February 2007
  • Figure 75: Choice of retail channel to purchase RTD non-carbonated beverages, by race/ethnicity, February 2007
  • Figure 76: Choice of retail channel to purchase RTD non-carbonated beverages, part II, by race/ethnicity, February 2007
• The Consumer: Reasons for Trying New Beverages
• Summary
• Reasons for trying new beverages
  • Figure 77: Reasons for trying new beverages, by gender, February 2007
  • Figure 78: Reasons for trying new beverages, by age, February 2007
  • Figure 79: Reasons for trying new beverages, by race/ethnicity, February 2007
  • Figure 80: Reasons for trying new beverages, by presence of children in the household, February 2007
• Future and Forecast
• Future trends
• RTD non-carbonated beverages will thrive due to greater variety of lifestyle participation
• Downward pressure on (plain) bottled water, energy drinks and sports drinks prices
  • Figure 81: FDM per gallon price of convenience/PET bottled water for various brands and private labels, 2001-06
• Slower growth for energy drinks
  • Figure 82: Caffeine content of selected beverages, 2006
• Protein-enhanced beverages
• Trend towards complete health management rather than complete weight management
• Demographic influences
• Young adults and teens
  • Figure 83: U.S. population of teens and young adults aged 12-34, by age, 2001-11
• Hispanics and blacks--promise for continued growth
  • Figure 84: Population, by race and Hispanic origin, 2001-11
• Growing distribution for small but popular brands
• Market forecast
• RTD non-carbonated beverages
  • Figure 85: Forecast of total U.S. FDM sales of RTD non-carbonated beverages, at current and constant prices, 2006-11
• Fruit juice and drinks
  • Figure 86: Forecast of U.S. FDM sales of fruit juice and drinks, at current and constant prices, 2006-11
• Bottled water
  • Figure 87: Forecast of U.S. FDM sales of bottled water, at current and constant prices, 2006-11
• Sports and energy drinks
  • Figure 88: Forecast of U.S. FDM sales of sports and energy drinks, at current and constant prices, 2006-11
• RTD tea and coffee
  • Figure 89: Forecast of U.S. FDM sales of RTD tea and coffee, at current and constant prices, 2006-11
• Forecast factors
• Appendix: Trade Associations
• The American Beverage Association