Beverage Packaging Trends - US - January 2012

The Great Recession and a stuttering economy continue to influence consumer attitudes and behavior, and in turn, trends in the beverage market. According to Mintel GNPD, since the onset of the recession there has been significant new product launch activity in the beverage market driven by innovation in the alcoholic beverage segment. The influx of beverage products makes beverage labeling and packaging even more critical for success in a highly competitive atmosphere.

Mintels proprietary research finds that todays beverage shoppers indicate a need for simple, readable beverage labels; yet, also want to be provided with many pieces of product information. Nutrition and health claims remain important in this market. Environmental matters are also an important trend; however, it seems as if the troubled economy has imposed shifts in consumer opinions towards eco-friendly packaging and recycling efforts.

In this report, Mintel will provide in-depth analysis on topics including:

• The influence of macroeconomic data on category innovation, as well as attitudes and behaviors towards packaging
• The impact of population shifts by age and race/Hispanic origin on beverage packaging trends
• Trends in beverage innovation by category, sub-category, claims and package types/materials
• Strategic marketing efforts that leverage beverage labeling and packaging to connect with consumers
• Insight into consumer opinions towards health and nutritional claims on beverages
• The importance of beverage labeling features, packaging features, and packaging claims on beverage selection
• The influence of eco-friendly claims and consumers willingness to pay for product packaging thats considered good, better, and best for the environment
• Cross-tab analysis to determine if consumers perceptions of themselves align with their attitudes and action in terms of the importance of beverage labeling and packaging, health, eco-friendly, and trendy features

Scope and Themes
What you need to know Definition Data sources Consumer survey data Advertising creative Abbreviations and terms Abbreviations Terms

Executive Summary
Stuttering economy impacts beverage innovation and packaging trends Beverage packaging trends subject to demographic population shifts Package types and sizes of beverage purchases Trends in beverage new products and packaging efforts Marketing strategies important in driving association as healthy snack Attitudes toward health and nutrition impact beverage labeling trends The importance of beverage labeling and packaging The cost equation of eco-friendly packaging Consumers’ self-defined traits align with actions

Insights and Opportunities
Overview Interactive packaging Packaging for specific users Local sourcing

Inspire Insights
Trend: “Green Skepticism” Trend: “Guiding Choice”

Market Drivers
Economic uncertainty impacts use and innovation in beverages
Figure 1: Real personal disposable income, January 2007-October 2011
Figure 2: Median household income in inflation-adjusted dollars, 2000-10
Figure 3: Unemployment and underemployment rates, January 2007-October 2011
Figure 4: Consumer Sentiment Index, March 2007-November 2011
Eco-friendly attitudes and recycling efforts impact market
Figure 5: Recycling attitudes/opinions and interests, 2005-11
Beverage packaging trends must accommodate varied attitudes by age
Figure 6: Recycling attitudes/opinions and interests, by age, April 2010-June 2011
Figure 7: Attitudes/opinions about the environment, by age, April 2010-June 2011
Figure 8: Recycling, by age, April 2010-June 2011
Figure 9: Population, by age, 2006-16
Beverage packaging trends must oblige Asians’ sustainable sensibilities
Figure 10: Recycling attitudes/opinions and interests, by race/Hispanic origin, April 2010-June 2011
Figure 11: Attitudes/opinions about the environment, by race/Hispanic origin, April 2010-June 2011
Figure 12: Recycling, by race/Hispanic origin, April 2010-June 2011
Figure 13: Population, by race and Hispanic origin, 2006-16

Beverage Purchases by Packaging Type and Size
Key points Beverage purchases by type of container
Figure 14: Frequency of packaged beverage purchase, by type of container, October 2011
Men show greater preference for glass containers
Figure 15: Types of beverage container used, by gender, October 2011
Aseptic containers well-accepted by younger age groups
Figure 16: Types of beverage container used, by age, October 2011
Beverage purchases by size of container
Figure 17: Frequency of packaged beverage purchase, by size of container, October 2011
Single-serving and multiserving packs have less acceptance among older consumers
Figure 18: Size of beverage containers used, by age, October 2011
One-person households less likely to purchase all beverage sizes
Figure 19: Size of beverage containers used, by household size, October 2011
Beverage purchases by container type and serving size
Figure 20: Frequency of packaged beverage purchase, October 2011
Multiserving beverages
Figure 21: Usage of multiserving beverages, October 2011
Single-serving beverages
Figure 22: Usage of single-serving beverages, October 2011
Multipack beverages
Figure 23: Usage of multipack beverages, October 2011

Innovations and Innovators
Key points Growth in beverage products necessitates packaging innovation
Figure 24: Beverage product launches, by category, 2006-11
Coffee, tea, and soda account for largest share of nonalcoholic beverages Wine dominates alcoholic beverages with stunning growth
Figure 25: Beverage product launches, by subcategory, 2006-11
Product claims influence purchase, yet not widely used The popularity of allergen and gluten claims The presence of eco-friendly packaging claims expands rapidly Other ethical claims on the rise, too
Figure 26: Beverage product launches, by claim, 2006-11
Bottles dominate packaging type; glass material usage swiftly increases
Figure 27: Beverage product launches, by package type, 2006-11
Figure 28: Beverage product launches, by package material, 2006-11

Marketing Strategies
Key points Manufacturers and retailers employ labeling strategies to help consumers Marketing strategies to promote beverage packaging and innovation Limited-edition packaging Celebrity partnership New product launch
Figure 29: Dr. Pepper, Top Ten ad, November 2011

Beverage Health and Nutrition Claims
Key points Majority of consumers easily identify calorie and sugar content on labels
Figure 30: Opinions toward health and nutrition claims on beverage labels, October 2011
Women more likely to identify calories on label
Figure 31: Opinions toward health and nutrition claims on beverage labels, by gender, October 2011
Older consumers pay close attention to health claims
Figure 32: Opinions toward health and nutrition claims on beverage labels, by age, October 2011
Affluent more likely to pay close attention to health claims
Figure 33: Opinions toward health and nutrition claims on beverage labels, by household income, October 2011

Importance of Beverage Labeling Features
Key points Easy to read beverage labels are most important
Figure 34: Importance of beverage labeling features, October 2011
Women are more interested in all-natural and calorie claims
Figure 35: Importance of beverage labeling features, by gender, October 2011
Older consumers looking for easy to read beverage labels
Figure 36: Importance of beverage labeling features, by age, October 2011
Affluent access nutritional content, especially HFCS
Figure 37: Importance of beverage labeling features, by household income, October 2011

Importance of Beverage Packaging Features
Key points Easy to open beverages in a package that retains freshness is ideal
Figure 38: Importance of beverage packaging features, October 2011
Those who are younger than 25 favor style design features and find functional features less important
Figure 39: Importance of beverage packaging features, by age, October 2011
Older women find functional packaging attributes significantly important
Figure 40: Importance of beverage packaging features, by gender and age, October 2011

Packaging Claims that Influence Purchase
Key points Beverages that claim a “good/excellent source” drive purchase
Figure 41: Claims that influence the packaged beverage purchase decision, October 2011
Men less likely to be influenced by beverage claims
Figure 42: Claims that influence the packaged beverage purchase decision, by gender, October 2011
Those who are younger than 25 less influenced by nutrition claims, more influenced by wellness/function
Figure 43: Claims that influence the packaged beverage purchase decision, by age, October 2011
Low/no claims, organic, and premium influence purchase behavior of affluent consumers
Figure 44: Claims that influence the packaged beverage purchase decision, by household income, October 2011

Price Acceptance of Eco-friendly Packaging
Key points Declining interest in eco-friendly products
Figure 45: Influence of eco-friendly claim on beverage purchase decision, October 2011 and October 2010
Figure 46: Willingness to pay more for eco-friendly products, April 2010-June 2011
The majority of consumers willing to pay more for better/best eco-friendly packaging
Figure 47: Willingness to pay more for eco-friendly packaging, October 2011
“Good” eco-friendly packaging
Figure 48: Willingness to pay more for eco-friendly packaging that's good for the environment, by age, October 2011
“Better” eco-friendly packaging
Figure 49: Willingness to pay more for eco-friendly packaging that's better for the environment, by age, October 2011
“Best” eco-friendly packaging
Figure 50: Willingness to pay more for eco-friendly that's best for the environment, by age, October 2011

Impact of Race/Hispanic Origin
Key points Asians trust what companies say on labels, but find health claims confusing
Figure 51: Opinions toward health and nutrition claims on beverage labels, by race/Hispanic origin, October 2011
Asians and Hispanics value interesting graphics and label design
Figure 52: Importance of beverage labeling features, by race/Hispanic origin, October 2011
Hispanics and Asians give less importance to essential packaging attributes
Figure 53: Importance of beverage packaging features, by race/Hispanic origin, October 2011
Blacks and Hispanics are influenced by a variety of beverage claims
Figure 54: Claims that influence the packaged beverage purchase decision, by race/Hispanic origin, October 2011
Blacks and Asians willing to pay more for good eco-friendly packaging
Figure 55: Willingness to pay more for eco-friendly packaging that's good for the environment, by race/Hispanic origin, October 2011
Asians most willing to pay premiums for better eco-friendly packaging
Figure 56: Willingness to pay more for eco-friendly packaging that's better for the environment, by race/Hispanic origin, October 2011
Asians will pay higher premiums for best eco-friendly packaging
Figure 57: Willingness to pay more for eco-friendly that's best for the environment, by race/Hispanic origin, October 2011

Cluster Analysis
Attentives Demographics: Characteristics: Opportunity: Confused Demographics: Characteristics: Opportunity: Eco-Friendly Demographics: Characteristics: Opportunity: Watchful-Muddled Demographics: Characteristics: Opportunity: Characteristic tables:
Figure 58: Beverage packaging trends clusters, October 2011
Figure 59: Opinions toward health and nutrition claims on beverage labels, by beverage packaging trends clusters, October 2011
Figure 60: Importance of beverage labeling features, by beverage packaging trends clusters, October 2011
Figure 61: Importance of beverage packaging features, by beverage packaging trends clusters, October 2011
Figure 62: Frequency of purchasing beverages by package type, by beverage packaging trends clusters, October 2011
Figure 63: Claims that influence the packaged beverage purchase decision, by beverage packaging trends clusters, October 2011
Figure 64: Willingness to pay more for eco-friendly packaging, by beverage packaging trends clusters, October 2011
Demographic tables:
Figure 65: Beverage packaging trends clusters, by gender, October 2011
Figure 66: Beverage packaging trends clusters, by age, October 2011
Figure 67: Beverage packaging trends clusters, by education, October 2011
Figure 68: Beverage packaging trends clusters, by household income, October 2011
Figure 69: Beverage packaging trends clusters, by employment, October 2011
Figure 70: Beverage packaging trends clusters, by race, October 2011
Figure 71: Beverage packaging trends clusters, by Hispanic origin, October 2011
Cluster methodology:

Custom Groups: Self-defined Consumer Traits
Overview
Figure 72: Consumer traits, October 2011
Trendy consumers also pay very close attention to beverage label health claims
Figure 73: Opinions toward beverage labeling, by consumer traits, October 2011
Stylish consumers more likely to say label design and a seal of approval are important
Figure 74: Importance of beverage labeling, by consumer traits, October 2011
Consumers look for products and product packaging that align with self-defined image
Figure 75: Importance of beverage packaging, by consumer traits, October 2011
Figure 76: Claims that influence the packaged beverage purchase decision, by consumer traits, October 2011