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

Published: October 2013

Publisher: Canadean Ltd

Product ref: 185342

Pages: 58

Format: PDF

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Price: $ 3995.00

Report description

Product Synopsis
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 & 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.

Key Highlights
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.

Table of contents

1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.2.1 Consumer Trends
1.2.2 Consumer Groups
1.2.3 End Consumers
1.2.4 Volume Units and Aggregations
1.2.5 Population Profiles (for interpretation of tables and charts)
2 Methodology
2.1 Introduction
2.2 Initial data are based on a large scale, international program of online consumer surveys
2.3 Demographic groups tracking provides time series data
3 Consumer Segmentation, Group Value and Trend Influence
3.1 Cohort Groups and Hot Drinks Market Value
3.1.1 Age Groups
3.1.2 Gender Groups
3.1.3 Location Groups
3.1.4 Education Achieved Groups
3.1.5 Wealth Groups
3.1.6 Busy Lives Groups
3.2 Cohort Groups and Market Value by Category
3.2.1 Coffee
3.2.2 Other Hot Drinks
3.2.3 Tea
3.3 Behavioral Trends and Market Value
3.3.1 Coffee
3.3.2 Other Hot Drinks
3.3.3 Tea
4 Consumption Analysis
4.1 Consumption Frequencies by Age and Gender
4.1.1 Coffee
4.1.2 Other Hot Drinks
4.1.3 Tea
4.2 Consumer Profiles by Product Category
4.2.1 Coffee
4.2.2 Other Hot Drinks
4.2.3 Tea
5 Brand vs. Private Label Uptake
5.1 Brand vs. Private Label Consumer Penetration
5.1.1 By Category
5.2 Hot Drinks Brand Choice and Private Label Consumer Penetration
5.2.1 Coffee
5.2.2 Other Hot Drinks
5.2.3 Tea
6 The Share of Consumers Influenced by Trends
6.1 Trend Drivers of Consumers' Product Choices
6.1.1 Overall Hot Drinks
6.1.2 Coffee
6.1.3 Other Hot Drinks
6.1.4 Tea
7 Consumption Impact: Market Valuation
7.1 Hot Drinks Value Impact of Consumer Consumption Behavior
7.1.1 Market Value by Category
7.1.2 Market Volume by Category
7.2 Hot Drinks Value Analysis by Category
7.2.1 Market Value by Category
7.2.2 Expenditure per Capita by Category
7.2.3 Expenditure per Household by Category
7.3 Hot Drinks Volume Impact of Consumer Behavior Trends
7.3.1 Market Volume by Category
7.3.2 Consumption per Capita by Category
7.3.3 Consumption Per Household by Category
8 Retailer Choice and Category Share
8.1 Retailer Volume Share
8.1.1 Retailer Volume Share in Hot Drinks
8.2 Retailer Volume Share by Category
8.2.1 Retail Share by Volume - Coffee
8.2.2 Retail Share by Volume - Other Hot Drinks
8.2.3 Retail Share by Volume - Tea
8.3 Profiles of End-Consumers of Hot Drinks, by Retailer Used
8.3.1 Costco
8.3.2 Kroger
8.3.3 Publix
8.3.4 Safeway
8.3.5 Supervalu
8.3.6 Wal-Mart
9 Appendix
9.1 About Canadean
9.2 Disclaimer

List of Tables
Table 1: Volume Units for the Hot Drinks Market
Table 2: United States Survey Respondent profile (weighted), 2012
Table 3: United States Hot Drinks Value Share (%), by Age Groups, 2012
Table 4: United States Hot Drinks Value Share (%), by Gender, 2012
Table 5: United States Hot Drinks Value Share (%), by Urban and Rural Dwellers, 2012
Table 6: United States Hot Drinks Value Share (%) by Education Level Achieved Groups, 2012
Table 7: United States Hot Drinks Value Share (%) by Wealth Groups, 2012
Table 8: United States Hot Drinks Value Share (%) by Busy Lives Groups, 2012
Table 9: United States Coffee Consumer Group Share (% market value), 2012
Table 10: United States Other Hot Drinks Consumer Group Share (% market value), 2012
Table 11: United States Tea Consumer Group Share (% market value), 2012
Table 12: United States Total Coffee Value (US Dollar millions) and Value Share Influenced by Behavioral Trends, 2012
Table 13: United States Total Other Hot Drinks Value (US Dollar millions) and Value Share Influenced by Behavioral Trends, 2012
Table 14: United States Total Tea Value (US Dollar millions) and Value Share Influenced by Behavioral Trends, 2012
Table 15: United States Coffee Consumption Frequency Analysis (% by Age Group, by Consumption Group), 2012
Table 16: United States Coffee Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Table 17: United States Other Hot Drinks Consumption Frequency Analysis (% by Age Group, by Consumption Group), 2012
Table 18: United States Other Hot Drinks Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Table 19: United States Tea Consumption Frequency Analysis (% by Age Group, by Consumption Group), 2012
Table 20: United States Tea Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Table 21: United States Coffee Consumer Profiles (% consumers by sub-group), 2012
Table 22: United States Other Hot Drinks Consumer Profiles (% consumers by sub-group), 2012
Table 23: United States Tea Consumer Profiles (% consumers by sub-group), 2012
Table 24: United States Hot Drinks Private Label Consumer Penetration (% Consumers Using), by Category, 2012
Table 25: United States Coffee Consumer Penetration of Survey-tracked Brands and Private Label (% Consumers Using), 2012
Table 26: United States Other Hot Drinks Consumer Penetration of Survey-tracked Brands and Private Label (% Consumers Using), 2012
Table 27: United States Tea Consumer Penetration of Survey-tracked Brands and Private Label (% Consumers Using), 2012
Table 28: United States Hot Drinks: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 29: United States Coffee: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 30: United States Other Hot Drinks: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 31: United States Tea: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 32: United States Hot Drinks Market Value (US Dollar million), by Category, 2012
Table 33: United States Hot Drinks Market Volume by Category, 2012
Table 34: United States Hot Drinks Market Value (US$ million), by Category, 2012
Table 35: United States Hot Drinks Expenditure Per Capita (US Dollar), by Category, 2012
Table 36: United States Hot Drinks Expenditure Per Household (US Dollar), by Category
Table 37: United States Hot Drinks Market Volume (Ltr m)by Category, 2012
Table 38: United States Hot Drinks Consumption Per Capita (Ltr ) by Category, 2012
Table 39: United States Hot Drinks Consumption Per Household (Ltr ), by Category, 2012
Table 40: United States Hot Drinks Survey-tracked Retailer Shares by Volume (% of Kg m), 2012
Table 41: United States Coffee Survey-tracked Retailer Shares by Volume (Kg m), 2012
Table 42: United States Other Hot Drinks Survey-tracked Retailer Shares by Volume (Kg m), 2012
Table 43: United States Tea Survey-tracked Retailer Shares by Volume (Kg m), 2012
Table 44: United States: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Costco (% by Subgroup, as tracked by the Survey), 2012
Table 45: United States: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Kroger (% by Subgroup, as tracked by the Survey), 2012
Table 46: United States: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Publix (% by Subgroup, as tracked by the Survey), 2012
Table 47: United States: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Safeway (% by Subgroup, as tracked by the Survey), 2012
Table 48: United States: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Supervalu (% by Subgroup, as tracked by the Survey), 2012
Table 49: United States: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Wal-Mart (% by Subgroup, as tracked by the Survey), 2012

List of Figures
Figure 1: Consumer Trends Report Methodology
Figure 2: United States Hot Drinks Value Share (%), by Age Groups, 2012
Figure 3: United States Hot Drinks Value Share (%), by Gender, 2012
Figure 4: United States Hot Drinks Value Share (%), by Urban and Rural Dwellers, 2012
Figure 5: United States Hot Drinks Value Share (%) by Education Level Achieved Groups, 2012
Figure 6: United States Hot Drinks Value Share (%) by Wealth Groups, 2012
Figure 7: United States Hot Drinks Value Share (%) by Busy Lives Groups, 2012
Figure 8: United States Coffee Consumption Frequency Analysis (% by Age Group by Consumption Group), 2012
Figure 9: United States Coffee Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Figure 10: United States Other Hot Drinks Consumption Frequency Analysis (% by Age Group by Consumption Group), 2012
Figure 11: United States Other Hot Drinks Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Figure 12: United States Tea Consumption Frequency Analysis (% by Age Group by Consumption Group), 2012
Figure 13: United States Tea Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Figure 14: United States Hot Drinks Market Value (US$ million), by Category, 2012
Figure 15: United States Hot Drinks Expenditure Per Capita (US$), by Category, 2012
Figure 16: United States Hot Drinks Expenditure Per Household (US$), by Category
Figure 17: United States Hot Drinks Survey-tracked Retailer Shares by Volume (% of Kg m), 2012
Figure 18: United States Coffee Survey-tracked Retailer Shares by Volume (Kg m), 2012
Figure 19: United States Other Hot Drinks Survey-tracked Retailer Shares by Volume (Kg m), 2012
Figure 20: United States Tea Survey-tracked Retailer Shares by Volume (Kg m), 2012

Price: $ 3995.00

Related research categories

By sector: Hot drinks, General drinks

By market: United States (in North America)