Consumer and Innovation Trends in Carbonated Soft Drinks 2013

Transcription

1 Consumer and Innovation Trends in Carbonated Soft Drinks 2013 Fruit-flavored beverages, cola, mixers, and other carbonated soft drinks Consumer Insight Category Series. Published December 2013

2 Contents Please click on the section of interest 1. INTRODUCTION 07 Definition and scope 08 Datamonitor's mega-trends 11 Applying mega-trends to carbonated soft drinks HEALTH & WELLNESS 15 Overview 16 "Natural" 18 Weight management 22 Functional health SENSORY & INDULGENCE 32 Overview 33 Flavor 35 Drinkable snacks 37 Adult soft drinks INDIVIDUALISM & EXPRESSION 43 Overview 44 Personalization 46 Customization 48 Exclusivity SUSTAINABILITY & ETHICS 55 Overview 56 Sustainable production 58 Green packaging SMART & CONNECTED 65 Overview 66 Online engagement 69 Smart engagement 70 Smart shopping EVOLVING LANDSCAPES 74 Overview 75 Aging populations 77 Alcohol avoidance 80 Emerging markets EASY & AFFORDABLE 84 Overview 85 Private label 87 Convenience COMFORT & UNCERTAINTY 92 Overview 93 Simplicity 95 Transparency 97 Localism 98 Nostalgia CONCLUSIONS APPENDIX 105 2

3 Health & Wellness Consumers are shunning artificial ingredients in favor of "natural" formulations Overview Natural Weight management Functional health "Natural" claims are influencing product choice for many consumers Carbonated soft drinks are not traditionally viewed as "healthy" products, with many consumers concerned over the use of artificial additives and highly processed ingredients such as high fructose corn syrup. As consumers pay more attention to the ingredients used in the products they buy, there is growing demand for food and drinks made from "natural" and recognizable ingredients. With the majority of consumers perceiving "natural" to be more nutritious, there is strong opportunity to improve the health image of soft drinks by making them more "natural" and therefore better placed to compete with other soft drinks such as juices and smoothies. Consumers perceive "natural" to be healthier 70% of 50% of consumers consider products to be more nutritious if they are described as "natural" (2013). consumers choose "natural" food and drinks "all or most of the time" (2013) "Natural" remains a key focus of innovation in carbonated soft drinks The top four most common product claims for new carbonated soft drink launches between 2011 and 2012, were "natural" attributes: "natural," "no artificial color," "no preservatives," and "no artificial flavor." This trend towards "natural" products is advantageous to the category as it gives a more healthy and nutritious perception overall. However, it is comparatively restricted in relation to formulation flexibility in terms of colorings, flavorings, and overall taste. The "natural" trend has significant implications for low calorie or diet variants, which have, until recently, relied on heavily on artificial sweeteners. Global: top 10 claims for new carbonated soft drinks, Natural 8.7% No artificial color 8.4% No preservatives 7.8% No artificial flavor 6.5% No caffeine 6.0% No sugar 5.9% Low calories 5.1% Organic 4.9% Vegetarian 4.6% No calories 4.1% 3 Source: Datamonitor's Consumer Survey 2013; Datamonitor's Product Launch Analytics

4 Sensory & Indulgence Experiment with the sensory properties of carbonates to create "drinkable snacks" Overview Flavor Drinkable snacks Adult soft drinks Interest in drinkable snacks presents opportunities for carbonates The concept of a product that comes in the form of a drinkable snack appeals to 45% of consumers globally, with younger consumers the most interested in the idea. PepsiCo has pinpointed this as a key area of growth for its business going forward. Carbonated drinks could be positioned as a snack, by using more filling and substantial ingredients: creating a novel sensory experience and better catering to consumers who favor on-the-go meal solutions. Carbonates should look to other categories, such juices, for inspiration as to ways to "snackify" drinks. Ingredients such as protein, oats, chia seeds, aloe vera pulp or fruit pieces can add substance and texture, as well as potential functional health benefits. "[PepsiCo has a] whole range of products [ ] in the pipeline that are value-added products that can be snacks made into beverages [ ] A way to grow the beverage business is to take foods and drinkify them." Indra Nooyi, CEO of PepsiCo, at Beverage Digest's Future Smarts conference in New York, December 2012 Global: consumers who consider the concept of a product that comes as a "drinkable snack" appealing, segmented by age and country, 2013 China 74% Italy 52% US 46% Global average 45% Brazil 44% UK 38 % Mamma Chia Chia Squeeze US Chia seeds become gellike when mixed with juice, creating a filling snack. Sapporo red grape juice drink with aloe chunks Japan This carbonated drink contains aloe pulp chunks and red grape juice flavoring. 4 Source: Datamonitor's Consumer Survey 2013; Datamonitor's Product Launch Analytics

5 Smart & Connected Coca-Cola's "Happiness Refill" helps consumers in Brazil get connected Overview Online engagement Smart engagement Smart shopping "Happiness Refill" helps consumers in an emerging market connect with Coca-Cola Coca-Cola launched its "Happiness Refill" project at its beachfront concept store in Rio de Janeiro in Happiness Refill is a dispenser that gives mobile phone users, invited by Coca-Cola, free data credits to browse the Internet using a Coca-Cola mobile browser. The machine looks like a soda fountain and to use it the consumer must push their phone against the tap, which serves up free mobile Internet access through data credits. The project is aimed at Brazil's young emerging middle-class consumers, who enjoy using their phones but cannot yet afford a high data plan. The Coca-Cola browser that is loaded onto the user's phone enables them to listen to the radio, connect to social networks including Facebook and Twitter, and check the weather forecast. Each data "refill" is 20 megabytes worth of data and the users can return for more refills as they need. If Happiness Refill is successful, it could be rolled out to other emerging markets to enable more young consumers to get connected online. 5 Source: Advertising Age, March 2012

6 Comfort & Uncertainty Bring comfort to consumers through "retro" products that capture idyllic feelings of times past Overview Simplicity Transparency Localism Nostalgia Retrophilia and nostalgia Retrophilia is a love of things from the past, and can be felt by people who did not have the experience the first time around. It leads to modern recreations of the past. Nostalgia, in contrast, is the love of things from the past by those that have experienced it. Both concepts capture how consumers are seeking refuge in idyllic fantasies of the past, tending to glorify products and contexts that were prevalent in prior periods and/or places. The emotive value of food and drinks makes the theme of nostalgia all the more pertinent. Carbonated drinks manufacturers have capitalized on this trend through the launch of retro packing, and bringing back old recipes or flavors. Macario retro drink lemonade Italy A lemonade packaged in an oldfashioned style glass bottle, with retro imagery on the label. Pepsi and Mountain Dew Throwback soda US PepsiCo's retro "throwback" versions of its Pepsi and Mountain Dew brands are made to their original recipe with "real sugar," rather than the high fructose corn syrup now used. Big Red retro soda US Big Red retro soda, "made with real sugar" is said to have an old-fashioned taste. 6 Source: Datamonitor's Product Launch Analytics