Hot Drinks in the US
Euromonitor International's Hot Drinks in the US market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 77 | Publication date: Mar 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Premiumisation trend is most evident in coffee
Coffee remained the largest sector in the US hot drinks market by a large margin in 2007. Supply shortages coupled with steep increases in energy and transportation costs drove most coffee manufacturers to raise their unit prices during the year. This supported healthy growth in retail current value sales but limited growth in volume terms. Strong growth in current value sales was also attributable to a general trend towards premium products, especially more novel organic, fair-trade, and Rainforest Alliance brands. Standard mid-priced coffee brands like Folgers and Maxwell House struggled to maintain their sector positions as competition from smaller premium brands intensified. The launch of Folgers Gourmet in 2007 signals that the premiumisation trend is even filtering down to brands that have traditionally had a mass-market positioning.
Rising awareness of health benefits drives the positive development of tea
In 2007, increasing health concerns among US consumers spurred new interest in tea, particularly antioxidant-rich green, white and red tea products. During the review period, several studies reinforced consumer awareness of the health benefits of certain types of tea. Manufacturers sought to capitalise on this trend by launching new tea products containing antioxidant-rich ‘superfoods’ such as pomegranate, blueberry, and acai. While white, rooibos and oolong tea products have long lined the shelves of specialist tea outlets in the US, growing consumer interest allowed them to penetrate mainstream retail outlets towards the end of the review period. In 2007, most major grocery retailers chains carried a wide range of green, white, red, rooibos and oolong tea products.
Functional products aim to stem decline in other hot drinks consumption
Chocolate-based flavoured powder drinks and malt-based hot drinks continued to suffer from a lack of interest among US consumers in 2007. During the review period, both categories showed consistent declines in retail volume sales, as the traditionally high sugar and calorie content of products did not sit well with the wider trend towards healthier lifestyles. ConAgra Foods Inc tried a new approach in 2007 with the launch of its Great Start and Pick Me Up Swiss Miss variants, both of which contain added functional ingredients: the former contains added vitamins and minerals, while the latter contains added caffeine. While products fortified with calcium and vitamins have been launched by flavoured powder drinks manufacturers in the past, these have usually been targeted at parents seeking healthier alternatives for their children. The new Swiss Miss products launched in 2007 are targeted at adults, primarily women. If successful, this new approach should help to slow the decline in chocolate-based flavoured powder drinks consumption over the forecast period.
Diverse on-trade offerings drive consumer interest in coffee
Specialist coffee shops outlets like those in the Starbucks chain remained the most popular on-trade locations for US consumers to buy coffee during the review period. Other foodservice chains like 7-Eleven, Dunkin Donuts, Burger King and McDonald’s took note and invested heavily in upgrading the quality of their coffee offerings in an attempt to win over consumers. McDonald’s announced perhaps the most ambitious strategy to date, with the rollout of cafés complete with lattes, mochas and trained baristas planned for its US outlets in 2008. Looking to replicate the success of the Starbucks brand at the retail level, in 2007 Dunkin Donuts and Caribou Coffee became the latest on-trade operators to launch fresh ground coffee and fresh coffee beans products in supermarkets/hypermarkets and other off-trade channels. On-trade outlets were also the source of several innovations in coffee towards the end of the review period, from functional coffee with added guarana to new flavour variants adaptable to regional preferences. Over the forecast period, on-trade outlets are poised to play an increasingly important role in shaping consumer tastes for hot drinks products of all kinds in the US.
Table of contents
HOT DRINKS IN THE US : MARKET INSIGHT
EXECUTIVE SUMMARY
Premiumisation trend is most evident in coffee
Rising awareness of health benefits drives the positive development of tea
Functional products aim to stem decline in other hot drinks consumption
Diverse on-trade offerings drive consumer interest in coffee
KEY TRENDS AND DEVELOPMENTS
US consumers develop a taste for premium hot drinks products
On-the-go lifestyles boost on-trade hot drinks consumption in the US
Trend towards healthier hot drinks products gains momentum
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2002-2007
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2002-2007
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2002-2007
Table 4 Retail Sales of Hot Drinks by Sector: Value 2002-2007
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2002-2007
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2002-2007
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2002-2007
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2002-2007
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2002-2007
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2002-2007
Table 11 Hot Drinks Company Shares by Value 2003-2007
Table 12 Hot Drinks Brand Shares by Value 2004-2007
Table 13 Penetration of Private Label by Sector 2003-2007
Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2002/2007
Table 15 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2007
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2007-2012
Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2007-2012
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Volume 2007-2012
Table 19 Forecast Retail Sales of Hot Drinks by Sector: Value 2007-2012
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2007-2012
Table 21 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2007-2012
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2007-2012
Table 23 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2007-2012
Table 24 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2007-2012
Table 25 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2007-2012
APPENDIX
Production/Import/Export Data
Table 26 Manufacturer’s Shipments of Hot Drinks by Sector 2001-2006
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - USA
CONAGRA FOODS INC - HOT DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 ConAgra Foods Inc: Key Facts
Summary 3 ConAgra Foods Inc: Operational Indicators 2005-2007
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 ConAgra Foods Inc: Competitive Position 2007
KRAFT FOODS INC - HOT DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Kraft Foods Inc: Key Facts
Summary 6 Kraft Foods Inc: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Kraft Foods Inc: Competitive Position 2007
MASSIMO ZANETTI BEVERAGE USA - HOT DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Massimo Zanetti Beverage USA: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 Massimo Zanetti Beverage USA: Competitive Position 2007
PROCTER & GAMBLE CO, THE - HOT DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 The Procter & Gamble Co: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 11 The Procter & Gamble Co: Competitive Position 2007
RC BIGELOW INC - HOT DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 RC Bigelow Inc: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 RC Bigelow Inc: Competitive Position 2007
UNILEVER UNITED STATES INC - HOT DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Unilever United States Inc Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 15 Unilever United States Inc: Competitive Position 2007
COFFEE IN THE US
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 27 Sales of Coffee by Type: Volume 2002-2007
Table 28 Sales of Coffee by Type: Value 2002-2007
Table 29 Sales of Coffee by Type: % Volume Growth 2002-2007
Table 30 Sales of Coffee by Type: % Value Growth 2002-2007
Table 31 Coffee Company Shares 2003-2007
Table 32 Coffee Brand Shares 2004-2007
Table 33 Foodservice Sales of Coffee by Distribution Format 2002/2007
Table 34 Forecast Sales of Coffee by Type: Volume 2007-2012
Table 35 Forecast Sales of Coffee by Type: Value 2007-2012
Table 36 Forecast Sales of Coffee by Type: % Volume Growth 2007-2012
Table 37 Forecast Sales of Coffee by Type: % Value Growth 2007-2012
Table 38 Coffee Machine Sales: 2002-2006
Table 39 Instant Coffee by Speciality Type: Instant coffee (total) - off-trade volume 2004-2007
Table 40 Instant Coffee by Speciality Type: Instant coffee (total) - off-trade value 2004-2007
TEA IN THE US
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 41 Sales of Tea by Subsector: Volume 2002-2007
Table 42 Sales of Tea by Subsector: Value 2002-2007
Table 43 Sales of Tea by Subsector: % Volume Growth 2002-2007
Table 44 Sales of Tea by Subsector: % Value Growth 2002-2007
Table 45 Tea Company Shares 2003-2007
Table 46 Tea Brand Shares 2004-2007
Table 47 Forecast Sales of Tea by Subsector: Volume 2007-2012
Table 48 Forecast Sales of Tea by Subsector: Value 2007-2012
Table 49 Forecast Sales of Tea by Subsector: % Volume Growth 2007-2012
Table 50 Forecast Sales of Tea by Subsector: % Value Growth 2007-2012
Table 51 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2007
Table 52 Other Tea by Type: % Off-trade Volume 2005-2007
OTHER HOT DRINKS IN THE US
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 53 Sales of Other Hot Drinks by Subsector: Volume 2002-2007
Table 54 Sales of Other Hot Drinks by Subsector: Value 2002-2007
Table 55 Sales of Other Hot Drinks by Subsector: % Volume Growth 2002-2007
Table 56 Sales of Other Hot Drinks by Subsector: % Value Growth 2002-2007
Table 57 Other Hot Drinks Company Shares 2003-2007
Table 58 Other Hot Drinks Brand Shares 2004-2007
Table 59 Forecast Sales of Other Hot Drinks by Subsector: Volume 2007-2012
Table 60 Forecast Sales of Other Hot Drinks by Subsector: Value 2007-2012
Table 61 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2007-2012
Table 62 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2007-2012