2024
9
US Hispanic Consumers and Non-alcoholic Beverages 2024
2024-03-22T10:03:07+00:00
REP37B17347_AEA8_4A0A_B2A7_80F9F5AD6840
3695
171768
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Report
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The vibrant and growing Hispanic audience plays a critical and growing role in driving revenue across many categories of drinks, especially CSDs and coffee. Fiona O'Donnell, Senior Director -…

US Hispanic Consumers and Non-alcoholic Beverages 2024

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This report looks at the following areas:

  • Demographic and economic trends impacting Hispanic consumers
  • Non-alcoholic drinks market size and forecasted growth for select category segments
  • Hispanic consumption of different segments of non-alcoholic drinks
  • Drivers and key occasions for consuming nonalcoholic drinks
  • Attitudes and preferences regarding nonalcoholic drinks
  • Strategies beverage brands can use to drive consumption and loyalty from Hispanic audiences

The vibrant and growing Hispanic audience plays a critical and growing role in driving revenue across many categories of drinks, especially CSDs and coffee.

Fiona O’Donnell, Senior Director – Lifestyles, Culture & Identity, Multicultural, Travel & Leisure

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  1. Executive Summary

    • What you need to know
    • Consumer trends: key takeaways
    • Market size & forecast
    • Outlook for Hispanics and non-alcoholic beverages
    • Opportunities
  2. Target Audience Overview

    • Hispanics by the numbers
    • A growing and influential population
    • Graph 1: percent of US population, by Hispanic origin, 2018-28
    • Graph 2: percent of US population, by race, 2018-28
    • A young population with nearly three in 10 under age 18
    • Graph 3: population age distribution, by Hispanic vs all, 2023
    • Hispanic population aging over time
    • Larger family households are the norm
    • Graph 4: household types, by race and Hispanic origin, 2021
    • While Hispanic household income lags, buying power is rapidly increasing
    • Graph 5: median household income, by race and Hispanic origin, 2022
    • Nearly half are middle-/upper-middle class
    • Graph 6: household income distribution, by Hispanic vs all, 2022
    • Majority of US Hispanics are of Mexican origin
  3. The Market

    • Market context
    • "Better than before", but not necessarily all better
    • Market drivers
    • Growing interest in functional/BFY
    • Graph 7: functional drink interest – any interest, by Hispanic consumers vs all, 2023
    • Hispanics retain a positive outlook
    • Graph 8: major life changes expected in next year, by race and Hispanic origin, 2023
    • Market size and forecast
    • Market summary
    • CSDs and water are dominant segments in non-alcoholic beverages, overall
    • Graph 9: retail sales of non-alcoholic drinks, by segment, in current prices ($ millions), 2023
    • Energy drinks forecast to experience most rapid growth
    • Graph 10: retail sales of non-alcoholic drinks, by segment, in current prices ($ millions), 2028 (fore)
    • Retail sales and forecast of non-alcoholic drinks, by select segments
  4. Consumer Insights

    • Consumer fast facts
    • Consumer fast facts, cont.
    • Beverage consumption trends
    • A wide range of beverages consumed
    • Graph 11: Hispanics' non-alcoholic beverage consumption in the past three months (NETs), 2024
    • Non-alcoholic beverage NETs: definitions
    • More Hispanics than non-Hispanics drink coffee (among English-speaking Hispanics)
    • More Hispanics than non-Hispanics drink CSDs (among English-speaking Hispanics)
    • Potential opportunities for segment growth
    • Regular CSDs, 100% juice, and coffee/coffee drinks prepared at home are the most popular choices
    • Graph 12: Hispanic non-alcoholic beverage consumption in the past three months – detail and NETs, 2024
    • Coffee/coffee drinks, CSDs lead in frequency
    • Graph 13: frequency of drinking specific non-alcoholic beverages, by select beverage type, 2024
    • Coffee, juice in the AM; water, CSDs throughout the day
    • Morning meals are key beverage occasions
    • Graph 14: occasions for drinking specific non-alcoholic beverages, by select beverage type, 2024
    • Factors driving drink choice
    • Taste matters most for acculturated Hispanics
    • Graph 15: factors driving beverage choice, by acculturation level (any rank), 2024
    • Women more focused on hydration
    • Graph 16: factors driving beverage choice, by gender (any rank), 2024
    • Parents interested in mood/focus functions
    • Graph 17: factors driving beverage choice, by parental status (any rank), 2024
    • Younger consumers look for more from non-alcoholic drinks
    • Shifting needs for different age groups
    • Graph 18: most important factors for choosing a beverage to drink (any rank), by age, 2024
    • Attitudes toward non-alcoholic beverages
    • Balancing natural and functional ingredients
    • Younger, less acculturated Hispanics read labels
    • Graph 19: attitudes toward non-alcoholic beverages – ingredients (agree), by age/gender and acculturation level, 2024
    • Real sugar sweetens the deal
    • Younger consumers and parents most focused on health
    • Graph 20: attitudes toward non-alcoholic beverages – health/sugar (agree), by age and parental status, 2024
    • Some concerns around cost – especially for middle-income Hispanics
    • Graph 21: attitudes toward non-alcoholic beverages – price (agree), by household income, 2024
    • Be sustainable – but don't forget to have fun
    • Young men care most about sustainability
    • Graph 22: attitudes toward non-alcoholic beverages – sustainability/packaging/social media (agree), by gender/age and parental status, 2024
    • Coffee/coffee drinks consumption and drivers
    • Coffee drinking increases with age and parenthood
    • Coffee drinking increases with age, parenthood
    • Graph 23: coffee/coffee drinks consumption in the past three months, by key demographics, 2024
    • Attract younger Hispanics by injecting fun and celebrating identity on social media
    • Café Bustelo celebrates its Hispanic cultural identity through Instagram reels
    • Part of the daily routine
    • Graph 24: frequency of drinking coffee/coffee drinks, index to all measured beverage types*, 2024
    • Drive morning coffee for parents and newcomers
    • Seniors begin the day with coffee
    • Sticking to the tried and true?
    • Graph 25: most important factors for purchasing coffee/coffee drinks (any rank), index to all measured beverage types*, 2024
    • Innovation not a significant factor for coffee
    • Graph 26: coffee innovations of interest, index to all measured beverage types*, 2024
    • CSD consumption and drivers
    • Hispanic dads an important audience for CSDs
    • Graph 27: CSDs consumption in the past three months, by key demographics, 2024
    • A weekly treat
    • Graph 28: frequency of drinking CSDs, index to all measured beverage types*, 2024
    • Opportunity to grow through driving use occasions
    • Mealtime most common occasion to drink CSDs
    • Pairing CSDs with meal deals is a win-win
    • All in the family for CSDs?
    • Graph 29: most important factors for purchasing CSDs (any rank), index to all measured beverage types*, 2024
    • CSD innovation interests center on variety and sweeteners
    • Graph 30: CSDs innovations of interest, index to all measured beverage types*, 2024
    • Variety packs and natural ingredients can attract Hispanic CSD consumers
    • Juice/juice drinks consumption and drivers
    • Younger, acculturated Hispanics biggest juice/juice drinks consumers
    • Graph 31: juice/juice drinks consumption in the past three months, by key demographics, 2024
    • Daily to weekly frequency most common for juice
    • Graph 32: frequency of drinking juice/juice drinks index to all measured beverage types*, 2024
    • Give Hispanics a reason to drink both in the morning and with meals
    • Morning meals are key occasions for juice/juice drinks
    • Natural ingredients and flavor key purchase drivers
    • Graph 33: most important factors for purchasing juice/juice drinks (any rank), index to all measured beverage types*, 2024
    • Return of concentrates?
    • Graph 34: juice/juice drinks innovations of interest, index to all measured beverage types*, 2024
    • Sports/energy/performance drinks consumption and drivers
    • Men key audience for the category
    • Graph 35: sports/energy/performance drink consumption in the past three months, by key demographics, 2024
    • Few consume sports/energy/performance drinks daily
    • Graph 36: frequency of drinking sports/energy/performance drinks, index to all measured beverage types*, 2024
    • Break out of the exercise box
    • Exercise the key occasion for sport/energy/performance drinks
    • Sales and promotions an important driver
    • Graph 37: most important factors for purchasing sports/energy/performance drinks (any rank), index to all measured beverage types*, 2024
    • Potential for functionality beyond physical: mood-boosting garners interest
    • Graph 38: sports/energy/performance drinks innovations of interest, index to all measured beverage types*, 2024
    • Mood and cognitive health benefits from smaller brands
  5. Competitive Strategies

    • Launch activity and innovation
    • Choosing between fun and BFY
    • Emphasize origin when it comes to coffee
    • Leverage traditional flavors
    • Marketing and advertising
    • Depict consumption throughout the day
    • Encourage families to enjoy drinks together
    • Position energy drinks as fueling everyday life
    • Zoa energy drink
    • Opportunities
    • Expand occasions to drive consumption
    • Opportunity to supplant coffee among the young?
    • Graph 39: coffee/coffee drinks consumption in the past three months, by age, 2024
    • Work with Hispanics on authentic representation
    • Offer solutions to busy parents
    • Graph 40: non-alcoholic beverage consumption in the past three months, by parental status, (NETs), 2024
    • The power of concentration
    • Use limited editions to make CSDs special
  6. Appendix

    • Market definition
    • Consumer Research Methodology
    • Generations
    • Abbreviations and terms
    • Retail sales and forecast, by select segment – inflation-adjusted

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