2021
9
US Black Consumers: Non-alcoholic Beverages – CSDs and Juice/Juice Drinks Market Report 2021
2021-05-13T04:19:05+01:00
OX1044749
3695
138035
[{"name":"Black Americans","url":"https:\/\/store.mintel.com\/industries\/demographics\/black-americans"},{"name":"Drinks","url":"https:\/\/store.mintel.com\/industries\/drinks"}]
Report
en_GB
“Black consumers are not willing to give up the beverages they like. However, they are interested in trying new beverages and new flavors – as long as they come with…

US Black Consumers: Non-alcoholic Beverages – CSDs and Juice/Juice Drinks Market Report 2021

£ 3,695 (Excl.Tax)

Report Summary

“Black consumers are not willing to give up the beverages they like. However, they are interested in trying new beverages and new flavors – as long as they come with an element of the familiar (eg flavor blends). Because they are interested in exploring new drinks and are also focused on improving their health, beverages that offer the sweet flavor profile in a natural way as well as energizing qualities in a better-for-you (or ‘less bad for you’) way will be appealing.”

– Fiona O’Donnell, Director – Multicultural Consumers

This report covers the following issues:

  • The impact of COVID-19 on Black consumers’ non-alcoholic beverage purchases
  • How market factors will impact Black consumers’ attitudes and purchasing in the future
  • What are the most important qualities Black consumers look for in soda/CSDs and juice/juice drinks
  • What brands need to consider beyond product attributes when marketing to Black consumers

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Definition
          • Market context
            • Economic and other assumptions
              • COVID-19: US context
              • Executive Summary

                  • Top takeaways
                    • Market overview
                      • Impact of COVID-19 on Black consumers and non-alcoholic beverages
                        • Figure 1: Short-, medium- and long-term impact of COVID-19 on Black consumers and non-alcoholic beverages, April 2021
                      • Opportunities and Challenges
                        • Rising prices in the face of financial uncertainties challenge the market
                          • Youthful Black population skew presents opportunities for brands
                            • Focus on Black consumers’ desire for Wellbeing, Value, Experiences to drive purchases
                              • Consumer and Category Insights
                                • Black consumers buy for taste but also want healthier options without sacrifice
                                  • Figure 2: Types of non-alcoholic beverages purchased in the last year and net positive change in purchasing, October 2020
                                • Sparkling water/seltzers have room to grow
                                  • Figure 3: Sparkling water/seltzers use, by Black consumers vs all, November 2019-November 2020
                                • Familiar sweet and fruity flavors are most popular and garner the most interest
                                  • Figure 4: Non-alcoholic beverage flavors consumed, Black consumers indexed to all, November 2019
                              • The Market – Key Takeaways

                                • Black population share to hold relatively steady while numbers grow
                                  • Black consumers account for about 10% of the $123 billion market
                                    • COVID-19 boosts the market in the immediate and short term
                                      • Value, Identity and Rights describe the interplay of market factors and impact on Black consumers’ choices
                                      • The Black Population by the Numbers

                                        • The Black population holds steady at 13% of the total US population
                                          • Figure 5: US population, by race and Hispanic origin, 2016-21
                                        • Black population skews younger than among the total US
                                          • Figure 6: US Population distribution across age groups, total and Black, 2021
                                        • Half of Black households include single adults
                                          • Figure 7: US Household composition, by race and Hispanic origin, 2020
                                      • Market Value Indicators

                                          • Black consumer spending on non-alcoholic beverages estimated to account for about 10 percent of the market
                                            • Figure 8: Total US and Black consumer retail spending on non-alcoholic beverages, at current prices, 2015-20
                                          • Impact of COVID-19 on Black consumers and non-alcoholic beverages
                                              • Figure 9: Short-, medium- and long-term impact of COVID-19 on Black consumers and non-alcoholic beverages, April 2021
                                            • Learnings from the Great Recession: what’s the same and what’s different
                                              • Figure 10: Total US consumer expenditure on non-alcoholic beverages, at current prices, 2007-12
                                            • Financial strain during the recession dramatically reduced Black consumer spending
                                              • Figure 11: Black consumer unit* average expenditures on non-alcoholic beverages, index to all, 2006-10
                                            • A longer recovery period for Black workers is expected
                                            • Market Factors

                                                • Rising prices along with lower income means Black consumers will be more attuned to cost
                                                  • Non-alcoholic beverages price increases forecast to outpace historical average
                                                    • Figure 12: Changes in CPI: Food at home and non-alcoholic beverages, 2018-21 (fore)
                                                  • Lower median household income requires a greater focus value
                                                    • Figure 13: Median household income, by race and Hispanic origin, 2019
                                                  • Unstable employment and income impact Black consumer spending
                                                    • Labor force participation declines along with unemployment, though remains heightened
                                                      • Figure 14: LFP and unemployment, total and Black consumers, January 2007-March 2021
                                                    • Black women, in particular, exit the labor force
                                                      • Figure 15: Loss of employed workers by race and gender, February vs December 2020
                                                    • One third of Black consumers describes a challenging financial situation
                                                      • Figure 16: Current financial situation and impact on purchasing non-alcoholic beverages, October 2020
                                                    • Culture and heritage influence beverage choice
                                                      • Black population is concentrated in the South
                                                        • Figure 17: US Black population distribution, by census region, 2015
                                                      • Racial inequities can shape consumption habits
                                                        • Targeted advertising of sugary beverages continues to come under fire
                                                            • Figure 18: High school students who drink soda, juice and milk daily, by race and Hispanic origin, 2015
                                                          • Access to trusted public water sources drives bottled water consumption
                                                            • Figure 19: Contribution of beverage types to total non-alcoholic beverage consumption among adults aged 20+, by race/Hispanic origin, 2015-18
                                                        • Companies and Brands – Key Takeaways

                                                          • Regular soda/CSDs and fruit juices are Black consumer favorites
                                                            • Beverages go beyond product attributes to capture Black consumers’ attention
                                                              • Opportunities open up as segments blur and benefits come into focus
                                                              • Beverages and Brands: Spotlight on Soda/CSDs & Juice

                                                                  • Soda/CSDs, fruit juice and RTD iced tea overindex among Black consumers
                                                                    • Figure 20: Non-alcoholic beverage use – Personal and HH, by Black consumers and indexed to all, November 2019-November 2020
                                                                  • Non-alcoholic beverages – top soda/CSD and juice brands
                                                                    • Soda/CSDs
                                                                      • Figure 21: Regular cola drinks (non-diet) – Top brands, by Black consumers and indexed to all, November 2019-November 2020
                                                                      • Figure 22: Other regular carbonated (non-cola) soft drinks (non-diet) – Top brands, by Black consumers and indexed to all, November 2019-November 2020
                                                                    • Juice
                                                                      • Figure 23: Frozen orange juice (HH) – Top brands, by Black consumers and indexed to all, November 2019-November 2020
                                                                      • Figure 24: Orange juice – bottles, cans, cartons (HH) – Top brands, by Black consumers and indexed to all, November 2019-November 2020
                                                                      • Figure 25: Other fruit juices/drinks (HH) – Top brands, by Black consumers and indexed to all, November 2019-November 2020
                                                                      • Figure 26: Other fruit juices/drinks (HH) – Top fruit flavors used, by Black consumers and indexed to all, November 2019-November 2020
                                                                  • Competitive Strategies and Market Opportunities

                                                                    • Partnerships and strategic alliances can pay off
                                                                      • Target the niche to attract the masses
                                                                        • For us by us and for us with us
                                                                          • Black-owned business gaining recognition and making a mark
                                                                            • Juice opportunities: back to the basics along with ingredient innovation
                                                                              • Offer pack sizes at varying price points to address affordability
                                                                                • Highlight unique and local ingredients in a way that resonates among Black consumers
                                                                                  • Figure 27: Juice/juice drink/bottled smoothie innovations – Ingredients, by Black consumers and indexed to all, March 2020
                                                                                • Give sparkling water a boost
                                                                                  • Energy boosting and caffeinated sparkling waters can appeal to Black consumers
                                                                                    • Focus on the flavor
                                                                                      • Energy drinks can offer a fresh approach – but can also stick to the basics
                                                                                        • Focus on mental stimulation in energy drinks and shots
                                                                                          • Consider alternative functionalities for differentiation
                                                                                          • The Black Consumer – Key Takeaways

                                                                                            • Black consumers buy a variety of non-alcoholic drinks for their households
                                                                                              • Wellbeing, Value and Experiences Trend Drivers at the heart of shifts in buying
                                                                                                • Black consumers have strong associations between drinks and dayparts, occasions
                                                                                                  • Black consumers buy soda/CSDs for the bubbles and flavor
                                                                                                    • Juice purchases are motivated by its healthy image, flavor closely follows
                                                                                                      • Sweet and familiar fruit flavors are preferred
                                                                                                      • Non-alcoholic Beverages Purchases

                                                                                                        • Black consumers buy for taste but look for healthier options that fulfill their expectations
                                                                                                            • Figure 28: Types of non-alcoholic beverages purchased in the last year and net positive change in purchasing, October 2020
                                                                                                          • Beverage innovators have an opportunity with the heaviest purchasers
                                                                                                            • Figure 29: Number of beverage types purchased and profile of Black consumers who purchased 9+ types, October 2020
                                                                                                          • Age, more than income, drives household beverage purchases
                                                                                                            • Figure 30: Types of non-alcoholic beverages purchased in the last year, by age and household income, October 2020
                                                                                                          • At middle age, Black consumers start to make trade-offs
                                                                                                            • Figure 31: Types of non-alcoholic beverages purchased in the last year – Select items, by age, October 2020
                                                                                                          • Parents of young children are key purchasers of 100% juice, juice drinks, dairy milk
                                                                                                            • Figure 32: Types of non-alcoholic beverages purchased in the last year – Select items, by parents and child ages, October 2020
                                                                                                        • Reasons for Shifting Purchases

                                                                                                          • A desire for improved health is the top motivation for a change in habits
                                                                                                            • Wellbeing
                                                                                                              • Value
                                                                                                                • Experiences
                                                                                                                  • Figure 33: Reasons for change in purchasing non-alcoholic beverages, October 2020
                                                                                                                • Experimentation and pleasing household members drives increased CSD and 100% juice/juice drink purchases
                                                                                                                  • Figure 34: Select reasons for change in purchasing CSDs and juice/juice drinks, October 2020
                                                                                                              • Non-alcoholic Beverages Drinking Occasions

                                                                                                                • Popular drinks have strong associations with different dayparts, occasions
                                                                                                                    • Figure 35: Non-alcoholic beverage drinking occasions, October 2020
                                                                                                                  • Coffee – ie hot coffee – owns the morning
                                                                                                                    • Figure 36: Correspondence analysis – Symmetrical map – Non-alcoholic beverage drinking occasions, October 2020
                                                                                                                • Purchase Motivations: Soda/CSDs

                                                                                                                  • Carbonation is the top draw, adding bubbles to other beverages could challenge soda’s dominance
                                                                                                                    • Figure 37: Purchase motivations for soda, October 2020
                                                                                                                  • Flavor for soda is more important to Black men
                                                                                                                    • Figure 38: Purchase motivations for soda – Flavors, by gender and age, October 2020
                                                                                                                  • Socializing, saving and energizing are important for younger consumers
                                                                                                                    • Figure 39: Purchase motivations for soda – Occasion and qualities, by age, October 2020
                                                                                                                  • Soda brands can emphasize energizing qualities along with affordability
                                                                                                                    • Figure 40: Purchase motivation for soda – Energy; Felt tired/exhausted in the past year, by current financial situation, October 2020
                                                                                                                • Purchase Motivations: Juice

                                                                                                                  • Perception of healthfulness drives juice purchases
                                                                                                                    • Figure 41: Purchase motivations for juice, October 2020
                                                                                                                    • Figure 42: Household consumption of Juice types, by Black consumers and all, November 2019-November 2020
                                                                                                                  • Unlike soda, more Black women are motivated by flavor to buy juice
                                                                                                                    • Figure 43: Purchase motivations for juice, by gender, October 2020
                                                                                                                  • Dads buy juice because it’s healthier, moms – not as much
                                                                                                                    • Figure 44: Purchase motivations for juice – Health, by gender and parent status, October 2020
                                                                                                                  • Finances have little impact on health as a motivation to purchase juice
                                                                                                                    • Figure 45: Purchase motivations for juice – Health; effort to improve health, by current financial situation, October 2020
                                                                                                                • Non-alcoholic Beverage Flavors

                                                                                                                  • Familiar fruit flavors are most popular
                                                                                                                    • Figure 46: Non-alcoholic beverage flavors consumed, Black consumers indexed to all, November 2019
                                                                                                                  • Flavors of interest reflect current flavors consumed – fruity and presumably sweet
                                                                                                                    • Figure 47: Non-alcoholic beverage flavors of interest, October 2020
                                                                                                                    • Figure 48: Experience and interest in non-alcoholic beverage flavors, November 2019
                                                                                                                • Appendix – Data Sources and Abbreviations

                                                                                                                  • Data sources
                                                                                                                    • Sales data
                                                                                                                      • Consumer survey data
                                                                                                                        • Abbreviations and terms
                                                                                                                          • Abbreviations
                                                                                                                            • Terms
                                                                                                                            • Appendix – The Market

                                                                                                                              • Non-alcoholic beverages market size and forecast
                                                                                                                                • Figure 49: Total US sales and fan chart forecast of non-alcoholic beverages at current prices, 2015-25
                                                                                                                                • Figure 50: Total US and Black consumer retail spending on non-alcoholic beverages, at current prices, 2015-20
                                                                                                                                • Figure 51: Total US sales and forecast of non-alcoholic beverages at current prices, 2015-25
                                                                                                                                • Figure 52: Total US retail sales and forecast of non-alcoholic drinks, at inflation-adjusted prices, 2015-25
                                                                                                                            • Appendix – The Consumer

                                                                                                                              • Non-alcoholic beverages and brands
                                                                                                                                • CSDs/Soft drink brands most often
                                                                                                                                  • Figure 53: Regular cola drinks (non-diet) – Brands most often, by Black and White consumers, Black indexed to all, November 2019-November 2020
                                                                                                                                  • Figure 54: Other regular carbonated (non-cola) soft drinks (non-diet) – Brands most often, by Black and White consumers, Black indexed to all, November 2019-November 2020
                                                                                                                                  • Figure 55: Sparkling water, seltzers – Brands most often, by Black and White consumers, Black indexed to all, November 2019-November 2020
                                                                                                                                • Juice brands most often (household)
                                                                                                                                  • Figure 56: Frozen orange juice (HH) – Brands most often, by Black and White consumers, Black indexed to all, November 2019-November 2020
                                                                                                                                  • Figure 57: Orange juice – bottles, cans, cartons (HH) – brands most often, by Black and White consumers, Black indexed to all, November 2019-November 2020
                                                                                                                                  • Figure 58: Other fruit juices/drinks (HH) – Fruit flavors used, by Black and White consumers, Black indexed to all, November 2019-November 2020
                                                                                                                                  • Figure 59: Other fruit juices/drinks (HH) – Brands most often, by Black and White consumers, Black indexed to all, November 2019-November 2020
                                                                                                                                  • Figure 60: Tomato and vegetable juices (HH) – Brands most often, by Black and White consumers, Black indexed to all, November 2019-November 2020
                                                                                                                                • Bottled water brands most often
                                                                                                                                  • Figure 61: Bottled water – Brands most often, by Black and White consumers, Black indexed to all, November 2019-November 2020
                                                                                                                                • Regular tea (household) and RTD iced tea brands most often
                                                                                                                                  • Figure 62: Regular tea (HH) – Brands most often, by Black and White consumers, Black indexed to all, November 2019-November 2020
                                                                                                                                  • Figure 63: RTD iced tea – Brands most often, by Black and White consumers, Black indexed to all, November 2019-November 2020
                                                                                                                                • Coffee brands most often (household)
                                                                                                                                  • Figure 64: Ground or whole bean coffee (HH) – Brands most often, by Black and White consumers, Black indexed to all, November 2019-November 2020
                                                                                                                                • Thirst quencher/activity drinks brands most often
                                                                                                                                  • Figure 65: Thirst quencher and sports/activity drinks – Brands most often, by Black and White consumers, Black indexed to all, November 2019-November 2020
                                                                                                                                • Energy drinks/shots brands most often
                                                                                                                                  • Figure 66: Energy drinks and shots – Brands most often, by Black and White consumers, Black indexed to all, November 2019-November 2020
                                                                                                                                • Beverages purchase responsibility
                                                                                                                                  • Figure 67: Non-alcoholic beverages purchase responsibility, by gender and marital status and gender, October 2020
                                                                                                                                • Non-alcoholic Beverages Purchases
                                                                                                                                  • Figure 68: Types of non-alcoholic beverages purchased in the last year and change in frequency, October 2020
                                                                                                                                • Correspondence analysis methodology
                                                                                                                                    • Figure 69: Correspondence analysis – Principal map – Non-alcoholic beverage drinking occasions, October 2020

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