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RTD Smoothies - US - December 2012

Published By :

Mintel

Published Date : Dec 2012

Category :

Beverages

No. of Pages : 140 Pages


The RTD smoothie category is characterized by low market penetration, especially in comparison to that of made-to-order smoothies. The good news for RTD smoothie makers is that they can use the heightened consumer exposure to smoothie brought about by the popularity of fast-food smoothies to increase consumer awareness of RTD products.”
Table of Content

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms

EXECUTIVE SUMMARY
The market
Figure 1: Total retail sales and fan chart forecast of RTD smoothie market, at current prices, 2007-17
Refrigerated segment dominates but shelf-stable shows strong growth
Figure 2: Total U.S. retail sales of RTD smoothies, by segment, 2007-17
Companies, brands and innovation
PepsiCo remains on top but loses market share
Figure 3: Retail sales of ready-to-drink smoothies by leading companies, 2012
New products invigorate market but innovation slackening off in 2012
Figure 4: New RTD smoothie introductions, 2007-12
Market factors
Low market penetration characterizes RTD smoothie category
Figure 5: Incidence of smoothie purchase, by retail outlet, August 2012
RTD smoothies most likely to be consumed at home, as a snack
The RTD smoothie consumer
Category participation decreases with age
Figure 6: Incidence of RTD smoothie purchase, by age, August 2012
Ethnic/racial groups represent growth opportunities for RTD smoothies
Figure 7: Population percent change, by race and Hispanic origin, 2007-17
Households with children offer opportunity
Figure 8: Incidence of RTD smoothie purchase, by presence of children in household, August 2012
Taste, convenience and function drive RTD smoothie sales
Figure 9: Reasons for drinking RTD smoothies, August 2012
Price and nutritional concerns hinder RTD smoothie sales
Figure 10: Reasons for not drinking smoothies, August 2012
Added benefits critical to RTD smoothie purchase decision
Figure 11: Attributes influencing RTD smoothie purchases, August 2012
What we think

ISSUES IN THE MARKET
How can the RTD smoothie industry increase market penetration?
How can the industry better target users and non-users?
How can RTD smoothies use general smoothie trends to their advantage?

INSIGHTS AND OPPORTUNITIES
Juicing trend presents opportunity for creating fresher RTD smoothies
Superfoods may rescue RTD smoothie consumers from flavor fatigue
Figure 12: RTD smoothie launches in U.S., by flavor group, 2007-12
Healthy meets carbonated
Expansion of seasonal offerings
Ride the made-to-order smoothie wave

TREND APPLICATIONS
Trend: Transumers
Trend: Make it Mine
2015 Trend: Old Gold

MARKET SIZE AND FORECAST
Key points
RTD smoothie sales grow 124% in 2007-12
Growth will slow but remain high in next five years
Strong future growth subject to innovation, nutritional perceptions
New product launches can greatly affect overall market sales trajectory
Sales and forecast of market
Figure 13: Total U.S. retail sales and forecast of RTD smoothie market, at current prices, 2007-17
Figure 14: Total U.S. retail sales and forecast of RTD smoothie market, at inflation-adjusted prices, 2006-17
Fan chart forecast
Figure 15: Total retail sales and fan chart forecast of RTD smoothie market, at current prices, 2007-17

MARKET DRIVERS
Key points
Nutrition is in the eye of the beholder
Improved economic indicators should encourage spending
Figure 16: Monthly Consumer Confidence Index, 2007-12
Figure 17: U.S. Unemployment and under-employment rates, 2007-12
Demographic changes likely to influence RTD smoothie market growth
Figure 18: Population by race and Hispanic origin, 2007-17

COMPETITIVE CONTEXT
Key points
Made to order smoothies provide competition, potential opportunities
Figure 19: Incidence of smoothie purchases, August 2012
Figure 20: Reasons for drinking made-to-order smoothies, August 2012
Whole or sliced fruit, other beverages prevent further RTD usage
Figure 21: Reasons for not drinking smoothies, by incidence of smoothie purchases, August 2012
Juice offers cheaper alternative without the benefits
Drinkable yogurt offers nutritious alternative to RTD fruit smoothies

SEGMENT PERFORMANCE
Key points
Refrigerated product dominates but lost market share in 2012
Figure 22: Total U.S. retail sales of RTD smoothies, by segment, at current prices, 2010 and 2012
Sales of RTD smoothies, by segment
Figure 23: Total U.S. retail sales of RTD smoothies, by segment, 2007-17

SEGMENT PERFORMANCE—REFRIGERATED
Key points
Refrigerated RTD smoothies expected to continue to dominate market
Sales and forecast of refrigerated RTD smoothies
Figure 24: Total U.S. retail sale of refrigerated RTD smoothies, 2007-17

SEGMENT PERFORMANCE—SHELF-STABLE
Key points
Impressive growth led by introduction of V8 V-Fusion smoothies
Figure 25: Total U.S. retail sales of shelf-stable RTD smoothies, 2007-17

RETAIL CHANNELS
Key points
All retail channels grew in 2012, but drug stores lost market share
Figure 26: Total U.S. retail sales of RTD smoothies, by channel, at current prices, 2010-12
Figure 27: RTD smoothie purchase preferences, by retail channel, by age, August 2012
Figure 28: RTD smoothie purchase preferences, by retail channel, by presence of children in household,
August 2012

RETAIL CHANNELS—SUPERMARKETS
Key points
Supermarket sales of RTD smoothies
Figure 29: U.S. supermarket sales of RTD smoothies, at current prices, 2007-12
Women and older consumers more likely to purchase at supermarket
Figure 30: RTD smoothie purchase preferences, by retail channel, by gender, August 2012

RETAIL CHANNELS—OTHER CHANNELS
Key points
Walmart drives sales in other channels
Other retail channel sales of RTD smoothies
Figure 31: U.S. sales of ready to drink smoothies, through other retail channels, at current prices, 2007-12

RETAIL CHANNELS—DRUG STORES
Key points
Drug stores lag behind other retailers, lose market share in 2012
Drug store sales of RTD smoothies
Figure 32: U.S. drug store sales of RTD smoothies, at current prices, 2007-12

RETAIL CHANNELS—NATURAL SUPERMARKETS
Key points
Traditional smoothies draw skepticism in natural channel
Sales of RTD smoothies in the natural channel
Figure 33: Natural supermarket sales of RTD smoothies, at current prices, 2010-12
Figure 34: Natural supermarket sales of RTD smoothies, at inflation-adjusted prices, 2010-12
Natural channel sales of RTD smoothies by segment
Figure 35: Natural supermarket sales of RTD smoothies, by segment, 2009 and 2011
Brands of note
Natural channel sales of RTD smoothies, by organic
Figure 36: Natural supermarket sales of RTD smoothies, by organic, 2010 and 2012

LEADING COMPANIES
Key points
Top 3 RTD smoothie companies lose market share despite strong growth
Campbell Soup Co. acquires Bolthouse Farms in mid-2012
Private label loses market share, virtually non-existent in market
MULO sales of RTD smoothies
Figure 37: MULO sales of RTD smoothies by leading companies, 2011 and 2012

BRAND SHARE—REFRIGERATED
Key points
PepsiCo’s Naked brand smoothies continue to dominate the market
Bolthouse Farms brand smoothies to focus on innovation
Dean Foods’ Silk smoothie takes off
Top brands focus on added functionality
MULO sales of refrigerated RTD smoothies
Figure 38: MULO sales of refrigerated RTD smoothies by leading companies, 2011 and 2012

BRAND SHARE—SHELF-STABLE
Key points
Segment growth driven by V8 brand smoothies
MULO sales of shelf-stable RTD smoothies
Figure 39: MULO sales of shelf-stable RTD smoothies by leading company, 2011 and 2012

INNOVATIONS AND INNOVATORS
Number of new product introductions small but growing
Figure 40: New RTD smoothie introductions in U.S., by company, 2007-12
New product claims on the rise for RTD smoothies
Figure 41: New RTD smoothie product claims in U.S., 2007-12
Expanding the market by targeting the youngest consumers
Innovative packaging makes smoothies on-the-go easier and more fun

MARKETING STRATEGIES
Overview of the brand landscape
Made-to-order smoothies emphasize taste, health and convenience
Fast-food smoothie TV ads focus on the taste, experience and ingredients
Figure 42: McDonald’s, television ad – In Season, 2012
Figure 43: McDonald’s, television ad – Love My Smoothie, 2012
Jamba Juice provides ingredients for fruitful living
Figure 44: Jamba Juice, television ad – Motivated, 2012
RTD smoothie giant has widespread marketing presence in social media
Naked uses TV advertisements for straightforward messages of health
Figure 45: Naked, television ad – Food Your Body Needs, 2012
Social media presence touts brand values but leaves room for improvement
Bolthouse Farms helps consumers live healthier, more vibrant lives
Facebook page offers followers product information, resources, ideas
YouTube video communicates company’s values
Sampling events bring consumers face to face with brand and product
Odwalla appeals to consumers with the power of goodness
V8 V-Fusion less active in social media
V-Fusion smoothie Facebook page targets women, mothers
Consumer criticism is the pitfall of social media

THE SMOOTHIE CONSUMER
Key points
Fast food is king of smoothie selling
Consumer demographics consistent regardless of smoothie outlet
Figure 46: Incidence of smoothie purchases, by age, August 2012
Figure 47: Adult usage of fast food & drive-in restaurants, by age, April 2011-June 2012
Men and women equally likely to purchase made-to-order smoothies
Figure 48: Incidence of smoothie purchases, by gender, August 2012
Children and adults drive RTD smoothie consumption in households with children
Figure 49: Incidence of smoothie purchases, by presence of children in household, August 2012
Multi-cultural groups are most likely to purchase smoothies
All smoothies compete for the same consumer

REASONS CONSUMERS ARE DRINKING RTD SMOOTHIES
Key points
Taste and convenience most common reason for RTD smoothie use
Figure 50: Reasons for drinking RTD smoothies, by gender, August 2012
Added benefits is top consideration for RTD smoothie purchase
Figure 51: Attributes influencing RTD smoothie purchases, by age, August 2012
Coupons and promotional sales preferred over online deals
Figure 52: Attributes influencing RTD smoothie purchases, by presence of children in household, August 2012
Higher income groups put more value on deals, brand recognition
Figure 53: Attributes influencing RTD smoothie purchases, by household income, August 2012

REASONS CONSUMERS AREN’T DRINKING RTD SMOOTHIES
Key points
Price is a deterrent for RTD smoothies
Figure 54: Reasons for not drinking smoothies, by age, August 2012
RTD smoothies not perceived as nutritious by all consumers
Figure 55: Reasons for drinking made-to-order smoothies, by gender, August 2012
Lack of consumer awareness may contribute to low market penetration

RTD SMOOTHIE CONSUMPTION BY LOCATION
Key points
RTD smoothies at home
Figure 56: RTD smoothie consumption preferences, by location, August 2012
Women are more likely than men to consume RTD smoothies on-the-go
Figure 57: RTD smoothie consumption preferences, by location, by gender, August 2012

RTD SMOOTHIE CONSUMPTION BY OCCASION
Key points
RTD smoothies considered a snack before a beverage
Figure 58: RTD smoothie consumption preferences, by occasion, August 2012
Women use product as a meal replacement more so than men
Figure 59: RTD smoothie consumption preferences, by occasion, by gender, August 2012

THE ROLE OF PACKAGING IN RTD SMOOTHIE PURCHASE
Key points
Type of packaging may influence purchase for half of consumers
Figure 60: Consumer preferred attributes in RTD smoothie packaging, August 2012
Younger consumers more easily persuaded by packaging to purchase
Figure 61: Consumer preferred attributes in RTD smoothie packaging, by age, August 2012
Men more interested in family size or multi-serving containers
Figure 62: Consumer preferred attributes in RTD smoothie packaging, by gender, August 2012
Households with children interested in all types of packaging
Figure 63: Consumer preferred attributes in RTD smoothie packaging, by presence of children in household,
August 2012

RACE AND HISPANIC ORIGIN
Key points
Multicultural households with children are key opportunity for smoothies
Figure 64: Incidence of smoothie purchases, by race/Hispanic origin, August 2012
Figure 65: Households with children, by race and Hispanic origin of householder, 2011
Hispanic smoothie consumers choose function before nutrition
Figure 66: Reasons for drinking RTD smoothies, by Hispanic origin, August 2012
Asian/Pacific Islander consumer segments express price sensitivity
Figure 67: Reasons for not drinking smoothies, by race/Hispanic origin, August 2012
Hispanics value online deals more than non-Hispanics
Figure 68: Attributes influencing RTD smoothie purchases, by Hispanic origin, August 2012

SYMPHONYIRI GROUP BUILDERS PANEL DATA
REFRIGERATED JUICES/DRINKS—US
IRI/Builders—Key household purchase measures

OVERVIEW OF REFRIGERATED JUICES/DRINKS

REFRIGERATED JUICE AND DRINK SMOOTHIES
Consumer insights on key purchase measures – refrigerated juice and drink smoothies
Brand map
Figure 69: Brand map, selected brands of refrigerated juice and drink smoothies buying rate, by household
penetration, 2012
Brand leader characteristics
Key purchase measures
Figure 70: Key purchase measures for the top brands of refrigerated juice and drink smoothies, by household
penetration, 2012

APPENDIX: OTHER USEFUL CONSUMER TABLES
Figure 71: Incidence of smoothie purchases, by gender, August 2012
Figure 72: Incidence of smoothie purchases, by gender and age, August 2012
Figure 73: Incidence of smoothie purchases, by household income, August 2012
Figure 74: Incidence of smoothie purchases, by household size, August 2012
Figure 75: Incidence of smoothie purchases, by employment, August 2012
Figure 76: Reasons for not drinking smoothies, by presence of children in household, August 2012
Figure 77: Reasons for drinking made-to-order smoothies, by race, August 2012
Figure 78: Reasons for drinking made-to-order smoothies, by household size, August 2012
Figure 79: Reasons for drinking made-to-order smoothies, by presence of children in household, August 2012 .. 121
Figure 80: Consumer preferred attributes in RTD smoothie packaging, by household size, August 2012
Figure 81: RTD smoothie purchase preferences, by retail channel, by household income, August 2012
Figure 82: RTD smoothie purchase preferences, by retail channel, by RTD smoothie consumption preferences,
by location, August 2012
Figure 83: RTD smoothie purchase preferences, by retail channel, by RTD smoothie consumption preferences,
by occasion, August 2012
Figure 84: RTD smoothie consumption preferences, by location, by age, August 2012
Figure 85: RTD smoothie consumption preferences, by location, by RTD smoothie consumption preferences,
by occasion, August 2012
Figure 86: RTD smoothie consumption preferences, by occasion, by age, August 2012
Figure 87: RTD smoothie consumption preferences, by occasion, by presence of children in household,
August 2012
Figure 88: Attributes influencing RTD smoothie purchases, by RTD smoothie purchase preferences, by retail
channel, August 2012

APPENDIX—SYMPHONYIRI BUILDERS PANEL DATA DEFINITIONS
SymphonyIRI Consumer Network Metrics

APPENDIX: TRADE ASSOCIATIONS

APPENDIX: RESEARCH METHODOLOGY

CONSUMER RESEARCH
Primary Data Analysis
Sampling
Global Market Insite (GMI)
Secondary Data Analysis
Experian Simmons National Consumer Studies
Statistical Forecasting
Statistical modelling
Qualitative insight
The Mintel fan chart
Weather analogy
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