Description

“While COVID-19 didn’t prompt Hispanics to prioritize spending on non-alcoholic beverages, its impact on their day-to-day lives drove increased purchases as more time at home created more drinking occasions. Because occasion matters much more to Hispanics than wellness/BFY/functional claims, marketers may benefit from focusing their efforts on understanding how these occasions fit in Hispanics’ lives and how brands can participate.”

– Juan Ruiz, Director of Hispanic Insights

This report covers the following:

  • The impact of COVID-19 on Hispanics’ consumption of non-alcoholic beverages
  • How drinking occasions determine impact beverage consumption
  • The importance of brand in Hispanics’ purchase decisions and the key factors that define a meaningful brand
  • Why general market trends guiding product innovation may not resonate with Hispanics

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 Hispanics and non-alcoholic beverages
                          • Figure 1: Short-, medium- and long-term impact of COVID-19 on Hispanics and non-alcoholic beverages, February 2021
                        • Opportunities and challenges
                          • Understand what purchase responsibility means to Hispanic men and women to achieve relevance
                            • Figure 2: Hispanics’ responsibility for purchasing non-alcoholic beverages, by gender, and select key factors for non-alcoholic beverages, by purchase responsibility and gender, January 2021
                          • Ease the guilt associated with drinking soda
                            • Figure 3: Attitudes toward soda, by gender and age, January 2021
                          • Use functional claims to build juice brands
                            • Figure 4: Juice and juice drinks purchase motivators, indexed to all, January 2021
                          • Contextualize reduced sugar and zero sugar
                            • Figure 5: Sugar content as a factors for non-alcoholic beverages, by gender and age, January 2021
                        • The Market – Key Takeaways

                          • Hispanics can’t be ignored
                            • COVID-19 impacted drinking dynamics
                              • Hispanics are cautious about the recovery
                                • Brand strategies need tweaks to resonate among Hispanics
                                • Hispanics by the Numbers

                                  • The size of the Hispanic population and its growth trajectory points to opportunities
                                    • Figure 6: US population, by race and Hispanic origin, 2016-26
                                    • Figure 7: US population distribution across age groups, by Hispanic origin, 2021
                                  • Larger household sizes demand more variety of non-alcoholic beverages
                                    • Figure 8: Average number of people per household, by race and Hispanic origin, 2020
                                    • Figure 9: Households with related children under 18 in the household, by race and Hispanic origin of householder, 2020
                                • Market Value Indicators

                                  • Hispanics spend an estimated $17 billion on non-alcoholic beverages at home
                                    • Figure 10: Total US retail on non-alcoholic beverages, at current prices, by Hispanic origin, 2015-20
                                  • Impact of COVID-19 on Hispanics and non-alcoholic beverages
                                    • Figure 11: Short-, medium- and long-term impact of COVID-19 on Hispanics and non-alcoholic beverages, February 2021
                                  • Short term
                                    • Figure 12: Changes in behavior regarding non-alcoholic beverages, by household income, January 2021
                                  • Recovery
                                  • Market Factors

                                    • Hispanics are value-oriented consumers
                                      • Figure 13: Median US household income, by race and Hispanic origin of householder, 2019
                                      • Figure 14: US household income distribution, by race and Hispanic origin of householder, 2019
                                    • Unemployment is improving, but challenges persist
                                      • Figure 15: Seasonally adjusted unemployment, total US vs Hispanics, January 2007-January 2021
                                      • Figure 16: Consumer Sentiment Index, January 2007-February 2021
                                    • Prices of non-alcoholic beverages forecast to increase more than average
                                      • Figure 17: Changes in Consumer Food Price Indexes, 2018 through 2021
                                  • Market Opportunities

                                    • Global Trend Drivers influence Hispanics’ non-alcoholic beverage choices
                                      • Figure 18: Mintel Trend Drivers and Pillars – Wellbeing, Experiences, Value
                                    • Natural claims are more relevant than health and wellness claims
                                      • Hispanic families bring opportunities but also fragmentation
                                        • Value needs context
                                        • Competitive Strategies

                                            • Make flavor part of your story
                                                • Figure 19: Current non-alcoholic beverage flavors consumed, by race and Hispanic origin, indexed to all, November 2019
                                              • Low sugar & zero sugar products need to prove their flavor
                                                • Plastic bottles: share the improvements
                                                  • Figure 20: Snapple Facebook post, January-February, 2021
                                                  • Figure 21: Current non-alcoholic beverage flavors consumed, by race and Hispanic origin, indexed to all, November 2019
                                              • The Consumer – Key Takeaways

                                                • Purchase responsibility means something different by gender
                                                  • Hispanics purchase almost six types of beverages on average
                                                    • Half of Hispanics claim to stick to the beverages they like
                                                      • Creating associations with occasions helps brands stand out
                                                        • Brands need to encompass flavor, value and family preferences
                                                          • Hispanics prefer real sugar over artificial sweeteners in soda
                                                            • Soda can create tension within the home
                                                              • In juice, brand gives functional claims a voice
                                                              • Non-alcoholic Beverages Shopping Responsibility

                                                                • Not all responsibility is created equal
                                                                    • Figure 22: Hispanics’ responsibility for purchasing non-alcoholic beverages, by gender, January 2021
                                                                    • Figure 23: Select key factors for non-alcoholic beverages, by sole responsibility and gender, January 2021
                                                                    • Figure 24: Profile of Hispanics who take sole responsibility, indexed to all, January 2021
                                                                • Non-alcoholic Beverage Purchases

                                                                  • Larger households purchase variety
                                                                      • Figure 25: Types of non-alcoholic beverages purchased in the last year, January 2021
                                                                      • Figure 26: Non-alcoholic beverages Hispanics purchased in the last year, by household size, January 2021
                                                                      • Figure 27: Non-alcoholic beverages Hispanics purchased in the last year, by language spoken at home, January 2021
                                                                    • Coffee: there are opportunities for premium blends and gadgets
                                                                      • Figure 28: Net perceived change in purchases of coffee vs a year ago, by select demographics, January 2021
                                                                    • Bottled water: there is a need for differentiation
                                                                      • Figure 29: Net perceived change in purchases of bottled water vs a year ago, by select demographics, January 2021
                                                                      • Figure 30: Hispanics’ attitudes toward bottled water, net – any agree, indexed to all, November 2019
                                                                    • 100% fruit juice: the children will like it
                                                                      • Figure 31: Net perceived change in purchases of 100% fruit juice vs a year ago, by parental status, January 2021
                                                                      • Figure 32: Hispanics’ attitudes toward juice and juice drinks, net – any agree, indexed to all, April 2020
                                                                    • Regular soda: younger Hispanic men embrace it
                                                                      • Figure 33: Net perceived change in purchases of regular soda vs a year ago, by gender and age, January 2021
                                                                      • Figure 34: Hispanics’ attitudes toward carbonated soft drinks, net – any agree, indexed to all, January 2021
                                                                  • Loyalty Toward Non-alcoholic Beverages

                                                                    • Loyalty: build it over time
                                                                        • Figure 35: Attitudes and behaviors toward non-alcoholic beverages – loyalty, January 2021
                                                                        • Figure 36: Attitudes and behaviors toward non-alcoholic beverages – loyalty, by select demographics, January 2021
                                                                    • Non-alcoholic Beverage Associations

                                                                      • Hispanics associate soda and juices with meaningful occasions
                                                                          • Figure 37: Correspondence Analysis – Symmetrical map – beverage usage occasions, January 2021
                                                                          • Figure 38: Beverage usage occasions, January 2021
                                                                          • Figure 39: Sprite Facebook posts, February 2021
                                                                      • Key Factors for Non-alcoholic Beverages

                                                                        • Brands need to encompass flavor, value and family preferences
                                                                            • Figure 40: Key factors for non-alcoholic beverages, January 2021
                                                                            • Figure 41: TURF Analysis – Important factors, January 2021
                                                                            • Figure 42: Key factors for non-alcoholic beverages, by language spoken at home, January 2021
                                                                            • Figure 43: Key factors for non-alcoholic beverages, by Hispanics with sole purchase responsibility and gender, January 2021
                                                                        • Attitudes toward Soda

                                                                          • Does the type of soda sweetener matter?
                                                                              • Figure 44: Attitudes toward soda sweeteners, indexed to all, January 2021
                                                                              • Figure 45: Attitudes toward soda sweeteners, by gender and age, January 2021
                                                                            • Hispanic moms can veto CSDs at home
                                                                                • Figure 46: Attitudes toward soda, indexed to all, January 2021
                                                                                • Figure 47: Attitudes toward soda, by gender and age, January 2021
                                                                            • Juice and Juice Drinks: Purchase Motivators

                                                                              • Hispanics are more likely to listen to functional claims from brands they know
                                                                                  • Figure 48: Juice and juice drinks purchase motivators, indexed to all, January 2021
                                                                                  • Figure 49: TURF Analysis – Appealing juice attributes, January 2021
                                                                                  • Figure 50: Juice and juice drinks purchase motivators, by age, January 2021
                                                                                  • Figure 51: Juice and juice drinks purchase motivators, by household income, January 2021
                                                                              • Appendix – Data Sources and Abbreviations

                                                                                • Data sources
                                                                                  • Sales data
                                                                                    • Consumer survey data
                                                                                      • Abbreviations and terms
                                                                                        • Abbreviations
                                                                                          • Terms
                                                                                            • A note about acculturation
                                                                                            • Appendix – Mintel Trend Drivers

                                                                                                • Figure 52: Mintel Trend Drivers and Pillars
                                                                                            • Appendix – Consumer

                                                                                              • Correspondence analysis methodology
                                                                                                • TURF methodology
                                                                                                    • Figure 53: Table – TURF Analysis – Important factors, January 2021
                                                                                                    • Figure 54: Table – TURF Analysis – Appealing juice attributes, January 2021

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