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Miscellaneous Beverages 2020 Market PLUSThe Pandemic’s Impact on Beverage ChoicesBecause the pandemic is a major health challenge, many consumers (after their initial panic grocery shopping) are making food and beverage choices to support and improve their health, especially to boost immunity, a trend expected to continue into the future. Consumers want wellness ingredients in their beverages: probiotics, vitamins, protein, antioxidants, kombucha and electrolytes as well as beverages to prolong energy levels safely and with less or no sugar content to limit carbs and sugar intake.To generate more sales, beverage retailers must adjust to consumers’ fewer shopping trips and promote multipacks and larger containers. With restaurants, bars, schools and even large family gatherings closed or limited, retailers have opportunities to fill the void.Non-Alcoholic Beverages Purchased for Off-Premise Consumption, 2019–2020Time PeriodSAAR*YOY % ChangeTime PeriodSAAR*YOY % ChangeJanuary 2020$100.98 B+1.6%April 2020$103.66 B+4.0%February 2020$101.15 B+3.5%May 2020$106.05 B+5.7%March 2020$120.29 B+21.4%June 2020$107.11 B+6.1%Q1 2020$107.48 B+8.9%Q2 2020$105.61 B+5.3%1H 2020$106.55 B+7.1%US Bureau of Economic Analysis, September 2020*seasonally-adjusted annual rate, not monthly salesMilk Makes a ComebackAlthough total dairy milk sales has decreased almost 25% since 2014, it was on many consumers’ early-pandemic shopping list, as dollar sales increased 5.6% ($15.9 billion) for the 52 weeks ending 5/17/20, according to Information Resources, Inc. (IRI).Dollar sales of the whole-milk sub-category increased 8.6% to $5.2 billion while dollar sales of the refrigerated skim/low-fat milk sub-category increased 3.0% to $7.1 billion during the same 52-week period. US Bureau of Economic Analysis data reveal the SAAR for the “fresh-milk” category increased 10.1% YOY for Q1 2020 and increased 11.4% YOY for Q2 2020.Milk Dollar Sales Performance at Multi-Channel Outlets, March–September 2020Time PeriodYOY % ChangeTime PeriodYOY % ChangeWeek ending 3/1/20+3.0%June (6/7–28/20)+6.7%March (3/8–29/20)+29.6%July (7/5–26/20)+7.5%April (4/5–26/20)+21.6%August (8/2–30/20)+8.5%May (5/3–31/20)+14.9%September (9/6–27/20)+9.7%International Dairy Deli Bakery Association (IRI), October 2020Refrigerated RFD Coffee Drives the Market During the PandemicAccording to a September 2020 Gallup poll, 33% of US workers said they are always working remotely, and 25% occasionally, which contributed to a 19.8% increase in dollar sales of refrigerated ready-to-drink coffee for the 52 weeks ending 5/17/20.According to the National Coffee Association (NCA), the average of 2.9 cups/day/coffee drinker hasn’t changed much from January to September, as almost 20% of consumers were buying less coffee outside the home, or 22% less at their workplaces. The NCA also reported in a 2020 survey 62% of respondents said, “It’s easy to buy ready-to-drink coffee,” and 29% who are currently drinking it said they drink it regularly/ occasionally and 35% had an excellent/very good opinion of RFD -5 Refrigerated RTD Coffees, 2020*Refrigerated RTD BrandsDollar Sales% ChangeMarket Share% Change#1: Starbucks$117.02 M+36.7%24.02%+2.97%#2: Stok $100.12 M+35.0%20.55%+2.31%#3: International Delight$88.98 M+19.2%18.27%-0.09%#4: Starbucks Iced Espresso Classics$68.52 M+13.6%14.07%-0.76%#5: Califia Farms$37.49 M+10.6%7.70%-0.64%Category Total?$487.11 M+19.8%100%Beverage Industry, June 2020*for 52 weeks ending 5/17/20?includes brands not listedOther Coffee Types Are Less Popular During the PandemicAlthough dollars sales for refrigerated RFD coffee brands increased significantly during the early-pandemic period, the sub-category represents a small portion of the total coffee market, but RFD coffees were more convenient for busy at-home workers.According to the NCA’s September 2020 coffee consumption survey, of the participating consumers who bought coffee to drink at home, 57% had increased their purchases online, 40% at a coffee shop and 25% at a club/warehouse store.The NCA also reported 62% of participating consumers said they had consumed coffee during the “past day,” second behind bottled water at 64%. Tap water was third at 47%, tea fourth at 45% and soft drinks fifth at 41%.Top-5 Ground and Single-Cup Coffees, 2020*Ground BrandsDollar Sales% ChangeSingle-Cup BrandsDollar Sales% Change#1: Folger$1.02 B-2.8%#1: Private label$1.03 B+8.0%#2: Starbucks $502.97 M+9.2%#2: Starbucks$761.02 M+7.4%#3: Private label$434.14 M+0.6%#3: Keurig Green Mountain$522.87 M+4.9%#4: Maxwell House$424.21 M-10.5%#4: Dunkin’$369.45 M+10.8%#5: Dunkin’$315.63 M+5.6%#5: Folgers$260.76 M+103.3%Category Total?$4.05 B+1.7%Category Total?$4.46 B+5.5%Beverage Industry, June 2020*for 52 weeks ending 3/22/120?includes brands not listedConvenience of Refrigerated Ready-to-Drink Teas Boosts SalesMuch like refrigerated RTD coffee, refrigerated RTD tea brands increased their dollar sales significantly (6.2%) for the 52 weeks ending 5/17/20, compared to canned and bottled teas, which decreased 1.1%; however, tea bags and loose-leaf tea increased 9.4%.With three brands in the top five of canned and bottled teas, Lipton helped and hurt the sub-category. Lipton Pure Leaf increased the most, or 7.1%, to $788.51 million, while Lipton Brisk decreased 0.3% and Lipton Tea decreased 4.5%.Although GlobalData forecasted during 2019 a CAGR (compound annual growth rate) of 4.8% for the US hot tea market through 2023 (to a total of $3.4 billion), the convenience of RTD tea brands may continue to attract more market -5 Refrigerated RTD Teas, 2020*Refrigerated RTD BrandsDollar Sales% ChangeMarket Share% Change#1: Private label$266.11 M+3.2%15.5%-0.5%#2: Gold Peak$221.70 M+7.6%12.9%+0.2%#3: Milos$198.08 M+19.1%11.5%+1.2%#4: Red Diamond$136.17 M+2.2%7.9%-0.3%#5: Turkey Hill$117.86 M+1.1%6.9%-0.3%Category Total?$1.72 B+6.2%100%Beverage Industry, June 2020*for 52 weeks ending 5/17/20 ?includes brands not listedJuice Sales Increase, But Challenges RemainAs the traditional breakfast fare has evolved, sales of frozen juices (including orange), as a breakfast beverage staple, has been declining for years; however, frozen juice sales increased 145% during mid-March.Another challenge for all juice categories, which is unlikely to dissipate even after the pandemic, is consumers’ desire for low-sugar beverages, as indicated by the 0.9% decrease in dollar sales of shelf-stable bottled fruit drinks for the 52 weeks ending 5/17/20.The canned fruit juice sub-category, however, increased dollar sales for the same 52-week period by 21.7%, with the top-performing Dole 100% Pineapple Juice increasing dollar sales 18.8%, dominating a market for which it already has a 55% -5 Refrigerated Orange Juices and Shelf-Stable Bottled Fruit Drinks, 2020*Refrigerated Orange JuicesDollar Sales% ChangeSingle-Cup BrandsDollar Sales% Change#1: Tropicana Pure Premium$962.77 M+7.4%#1: Snapple$250.02 M+3.8%#2: Simply Orange$755.65 M+5.7%#2: Hawaiian Punch$213.51 M+3.3%#3: Private label$592.23 M+12.1%#3: Bai$175.29 M-1.3%#4: Florida’s Natural$291.39 M+12.8%#4: V8 Splash$165.44 M+1.9%#5: Minute Maid Premium$188.53 M+0.2%#5: Bai Cocofusion$118.38 M-4.2%Category Total?$3.05 B+7.1%Category Total?$2.26 B-0.9%Beverage Industry, June 2020*for 52 weeks ending 5/17/20?includes brands not listedConsumers Need Energy DrinksWith dollar sales of energy drinks increasing 9.3% to $12.8 billion for the 52 weeks ending 5/17/20, consumers are searching for a boost, even though coffee sales have also increased; however, VBX Bang, a newer brand, was responsible for much of the growth.The much smaller sub-category, energy drink mixes, increased dollar sales even more, or 13.5%, to $124.5 million, while energy shots decreased 7.9% during the same period, primarily because of 5-Hour Energy’s dominance with an 89% market share.Major beverage companies are entering this category for the first time, with the introduction of Coca-Cola Energy and PepsiCo’s launch of Gatorade brand, BOLT24ENERGIZE, during January -5 Energy Drinks and Energy Shots, 2020*Energy DrinkDollar Sales% ChangeEnergy ShotsDollar Sales% Change#1: Red Bull$2.89 B-2.3%#1: 5-Hour Energy$867.7 M-9.3%#2: Monster Energy$1.76 B-2.6%#2: Tweaker$20.7 M-0.3%#3: VPX Bang$780.8 M+80.2%#3: Stacker 2 Extra$14.3 M-8.7%#4: Red Bull Sugar Free$687.8 M-0.3%#4: Stacker 2$10.8 M+10.1%#5: Monster Energy Zero Ultra$687.3 M-3.4%#5: VPX Bang$10.7 M+438.6%Category Total?$12.71 B+8.3%Category Total?$977.8 M-7.9%Beverage Industry, June 2020*for 52 weeks ending 5/17/20?includes brands not listedConsumers Demand a New Generation of Sports DrinksCarbohydrates and electrolytes were the sports-drink ingredients attracting consumers for many years; however, consumers now want healthier beverages, including sports drinks, so improving performance is still important, but their favorite choices must be low-sugar.The best evidence for consumers’ evolving demand is clearly illustrated by the 202.1% increase in dollar sales for Gatorade Zero, a no-sugar, 5-calorie sports drink, for the 52 weeks ending 5/17/20.A demand for protein-infused sports drinks for weight control and nutritional balance increased dollar sales for that sub-category 3.7% for the same 52-week period, with Premier Protein increasing its dollar sales 18.1% and a 12.2% market share. Top-5 Non-Aseptic Sports Drinks and Sports-Drink Mixes, 2020*Non-Aseptic Sports DrinksDollar Sales% ChangeSports-Drink MixesDollar Sales% Change#1: Gatorade Performance$1.75 B-5.3%#1: Gatorade Performance$46.5 M+0.8%#2: Gatorade$1.07 B+14.0%#2: Propel$33.6 M+28.1%#3: Gatorade Frost$749.6 M-12.8%#3: Nuun$7.79 M+76.7%#4: Gatorade Zero$703.8 M+202.1%#4: Liquid I.V.$6.06 M+216.6%#5: Powerade ION4$612.7 M-18.5%#5: Private label$5.90 M+5.1%Category Total?$7.01 B+7.7%Category Total?$103.2 M+17.0%Beverage Industry, June 2020*for 52 weeks ending 5/17/20?includes brands not listedPopularity of Alternative Dairy/Plant-Based Beverages IncreasesAlthough the pandemic has reinvigorated animal-based milk products, the dairy-alternatives category is forecast to increase at a CAGR (compound annual growth rate) of 11.4% by 2023, with total sales of $29.6 billion.Whole milk certainly has nutritional value, but consumers want less fat in their diets and the added nutritional value of dairy alternatives and their plant-based ingredients, such as soy, oat, pea, sunflower, chickpea, fava bean, rice and nuts of all kinds.According to Mintel, 38% of adults are experimenting with plant-based foods and more than 25% are actually dieting with a plant-based menu. The non-dairy sector can increase market share since approximately 60% of consumers currently purchase these -5 Refrigerated Milk Substitutes (All Other) and Almond Milk, 2020*Refrigerated Milk Substitutes (All Other)Dollar Sales% ChangeAlmond MilkDollar Sales% Change#1: Other HP Hood$43.57 M+923.7%#1: Blue Diamond Almond Breeze$554.25 M+9.8%#2: Danone$30.79 M-13.1%#2: Danone$474.32 M+10.1%#3: Oatly$27.21 M+370.2%#3: Private label$253.16 B+12.9%#4: Ripple$26.68 M+28.6%#4: Califia Farms$88.48 M+4.2%#5: Silk Oak Yeah$25.02 M+668.6%#5: Silk Almond Light$15.56 M-18.0%Category Total?$220.11 M+79.0%Category Total?$1.40 B+9.5%Beverage Industry, June 2020*for 52 weeks ending 5/17/20?includes brands not listedCBD-Infused Beverages Becoming More MainstreamDespite federal policies disallowing CBD (cannabidiol) in beverages, states can permit it, and many have. The health benefits continue to gain credibility, so many consumers are purchasing these beverage products to relax, relieve stress and promote better sleep.Not only are CBD-infused beverages popular because of their benefits, but also many manufacturers are adding other health-related ingredients, such as turmeric. With only 28% of consumers stating an interest in these beverages, there is a larger market to penetrate.THC-based beverages must be manufactured and sold in dispensaries in states where consumption is legal. Product development is now expanding into other beverages.Adults 18–49 and 50+ Who Currently Use OTC Hemp CBD Product During the Past Year, by Selected Markets, 2020MarketTotal MarketAdults 18–49Adults 50+PercentIndexPercentIndexDenver, CO15.2%67.8%10532.4%92Miami-Ft. Lauderdale, FL8.1%74.6%13325.3%84Austin, TX13.4%68.5%10331.5%105Detroit, MI8.5%53.3%9946.7%80Based on The Media Audit’s Spring and Summer 2020 surveysMore Valuable InsightseSports fans and gamers in general are markets beverage companies and retailers shouldn’t overlook, especially for energy drinks.According to Media Group Online’s eSports Market 2020 Profiler, “Together, video games and eSports 2018 US revenues were $24.4 billion, and are forecast to increase to $31.1 billion by 2023. The global eSports market was expected to exceed $1 billion for 2019, a 26.7% increase, with $409.1 million just from North America.”Although the vast majority of eSports fans are young men, it would be a mistake to market energy drinks to them alone, as NewZoom Research reports more than one-third of gamers are older than 34 and 47% of them are parents.Adults 18+ with incomes of $35,000 or less over-index among those who watched (and represent 37.6% of the total target audience) streaming video on Twitch during the past seven days. Conversely, 49.9% had incomes of $50,000+, 35.1% $75,000+ and 22.2% $100,000+. (Based on The Media Audit’s 2020 Aggregate Survey of 60-markets, representing more than 158 million adults.)Field Agent’s 2020 Holiday Insights Report indicates more Christmas shoppers (49%) said they are “completely likely” to drink coffee during Christmas Eve and/or Day than those “completely likely” to drink alcoholic beverages (40%). They may be drinking more coffee, however, after one or adult beverages. They were quite clear which coffee brands they would be drinking.Coffee Brands Christmas Shoppers Expect to Drink Christmas Eve/Christmas Day, October 2020BrandPercentBrandPercentStarbucks42%Gevalia8%Dunkin’25%Seattle’s Best7%Folgers24%Great Value7%Keurig (e.g., Green Mountain)20%Nespresso7%Maxwell House13%Eight O’Clock6%Other11%Peet’s Coffee6%McCafe10%Nescafe5%Field Agent, October 2020 (Survey of 2,020 US adults and 2,020 families 9/4–9/8/20)Sources: Progressive Grocer Website, 10/20; Beverage Industry Website, 10/20; US Bureau of Economic Analysis Website, 10/20; International Dairy, Deli and Bakery Association Website, 10/20; National Coffee Association Website, 10/20; Field Agent Website, 10/20; BEVNET Website, 10/20.Updated: October 2020? 2020 Media Group Online, Inc. All rights reserved.Local Market and Station Information ................
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