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BEVERAGE BLURRING-CANADA-MARCH 2018

Published By :

Mintel

Published Date : Mar 2018

Category :

Non-Alcoholic Drinks

No. of Pages : N/A

Hybrid beverages represent an opportunity for manufacturers to provide consumers with new and unique flavours. While “taste” remains the most important consideration for Canadian consumers when drinking their preferred beverages, nutritional benefits are a secondary consideration on par with affordability. There is also ample opportunity for growth of hybrid beverages drink with 14% of Canadians indicating they drink ‘hybrid/fusion drinks’ on a typical day. By contrast, 90% of Canadians claim they drink water (which includes tap water). Hybrid beverages hold more appeal with younger consumers, and feedback collected for this Report suggests that younger consumers also show more interest in trying ‘less traditional’ options. Given Canada’s aging population, this can represent a challenge, though it can be addressed by offering combinations that hold greater appeal with older consumers.

Table of contents

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Tension exists between cost and exploration
Figure 1: Attitudes towards hybrid drinks, December 2017
Sugar is the most pressing concern for consumers
Figure 2: Attributes identified as important for beverage purchases, December 2017
Canada’s aging population a challenge for beverages
Figure 3: Beverages consumed in a typical day, by age, December 2017
The opportunities
Beverage shares shifting in the Canadian market
Figure 4: Non-alcoholic beverage value share distribution at retail in Canada, 2012-17
Fruit flavours prove popular when considering hybrid beverages
Figure 5: Ideal hybrid drinks, December 2017
Hybrid beverages can be positioned as a means to bolster health-related benefits
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Focus on health and weight management to continue
Aging population impacts what Canadians eat and drink
MARKET FACTORS
Sales of sugar decline over the past five years
Figure 6: Total Canadian sales value for sugars and alternative sweeteners, at current prices, 2011-16
Focus on health and weight management to continue
Figure 7: Body mass index, self-reported rate of being overweight or obese among Canadian adults, by gender, 2010-14
Aging population impacts what Canadians eat and drink
Figure 8: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
Immigration fuelling Canada’s population growth
Figure 9: Foreign-born share of population, by G8 country and Australia
KEY PLAYERS – WHAT YOU NEED TO KNOW
Focus on flavour innovation provides consumers with more choice
Considerations around price represent a potential barrier for hybrid beverages
Beverages leverage natural appeal
OPPORTUNITIES
Focus on flavour innovation provides consumers with more choice
Figure 10: Non-alcoholic beverage drink launches in Canada (select categories), 2013-17
POTENTIAL CHALLENGES
Considerations around price represent a potential barrier for hybrid beverages
Concerns around sugar don’t mean Canadians shun sweetness
WHAT’S NEXT?
Beverages leverage natural appeal
Figure 11: V8 +Energy White Grape & Raspberry Flavored Energy Drink (US, October 2017)
Figure 12: V8 +Energy Original 100% Vegetable Juice with Green Tea Extract (US, October 2017)
Figure 13: Diet Coke Twisted Mango Flavored Diet Soda (US, February 2018)
Internationally inspired ingredients prove useful for flavour and health innovation
Figure 14: Monfefo Turmeric Shot Cold-Pressed Juice Drink (US, January 2018)
Figure 15: Taste Nirvana Read Coconut Water with Matcha Green Tea (Canada, April 2017)
Figure 16: REBBL Matcha Latte Super Herb Powered Coconut-Milk Elixir (Canada, April 2017)
Figure 17: Yachak Berry Red Yerba Mate (US, December 2017)
Coffee’s popularity in Canada unlocks opportunity for innovation
Figure 18: Keepers Citrus Sparkling Coffee (US, November 2017)
Figure 19: Upruit Mint Grapefruit Sparkling Coffee (US, January 2018)
Figure 20: Sunniva Vanilla Bean Super Coffee (US, October 2018)
Texture – The next sensory frontier
Figure 21: Organic Harvest Soul Green Fusion Organic Chewable Juice (US, March 2016)
Figure 22: Fanta Jelly Fizz Orange Flavour Soft Drink (Australia, March 2017)
Figure 23: Fanta Sour Tingle Berry Flavour Drinks (Australia, March 2017)
Figure 24: Fanta Jelly Fizz I How to Unlock the Jelly!, May 2017
THE CONSUMER – WHAT YOU NEED TO KNOW
Beverage landscape shifting in Canada
Taste dominates when choosing a beverage
Sugar remains the most pressing concern for consumers
Tension exists between cost and exploration
‘Fruit’ flavours represent the lowest-hanging fruit
BEVERAGE USAGE
Beverage shares shifting in the Canadian market
Figure 25: Non-alcoholic beverage value share distribution at retail in Canada, 2012-17
Figure 26: Beverages consumed in a typical day, December 2017
Water can represent a challenge for growing beverage sales
Younger Canadians more likely to drink beverages other than water and milk
Figure 27: Beverages consumed in a typical day, by age, December 2017
BEVERAGE SELECTION DRIVERS
Taste dominates when choosing a beverage
Figure 28: Reasons for drinking preferred beverages, December 2017
Figure 29: Flavour components in North American juice launches, 2017
Familiarity trumps trial as a reason for drinking preferred beverages
Figure 30: Familiarity and trial as reasons for drinking preferred beverages, by age, December 2017
Consumers are divided between nutrition and affordability
Figure 31: Nutrition and affordability as reasons for drinking preferred beverages, by gender and age, December 2017
HEALTH-RELATED CONSIDERATIONS
Sugar remains the most pressing concern for consumers
Figure 32: Attributes identified as important for beverage purchases, December 2017
Figure 33: Low/no sugar’s importance to beverage purchases among women, by age, December 2017
“All-natural” and “low calorie” prove important to an equal number of consumers
Figure 34: Importance of ‘all-natural’ versus ‘low calorie’, women 18-44 vs over-45s, December 2017
Added benefits resonate with a third of consumers
Figure 35: Importance of various attributes, by age, December 2017
Hybrid beverages can be positioned as a means to bolster health-related benefits
HYBRID BEVERAGE INNOVATION OPPORTUNITIES
Tension exists between cost and exploration
Figure 36: Attitudes towards hybrid drinks, December 2017
Figure 37: Attitudes towards hybrid drinks, by age, December 2017
Familiar brands are not necessarily a benefit for hybrid beverages
Figure 38: Peach and Habanero Flavour Artisanal Soda (Canada, December 2016)
‘Fruit’ flavours represent the lowest-hanging fruit
Figure 39: Ideal hybrid drinks, December 2017
Different combinations appeal to different demographics
Figure 40: Ideal hybrid drinks, by age, December 2017
Figure 41: Ideal hybrid drinks, by gender, December 2017
Figure 42: Ideal hybrid drinks among women, by age, December 2017
Figure 43: Ideal hybrid drinks by among men, by age, December 2017
CONSUMER GROUPS
Broad nutritional and functional benefits hold greater sway with Canadians
Figure 44: Beverages consumed in a typical day, Canada vs US, December 2017 (Canada) & November 2017 (US)
Figure 45: Ideal hybrid beverages, Canada vs US, December 2017 (Canada) & November 2017 (US)
Figure 46: Reasons for drinking preferred beverages, Canada vs US, December 2017 (Canada) & November 2017 (US)
Figure 47: Desired non-alcoholic drink attributes, Canada vs US, December 2017 (Canada) & November 2017 (US)
Chinese Canadians more open to drinking hybrid beverages
Figure 48: Beverages consumed in a typical day, Chinese Canadians vs overall population, December 2017
Figure 49: Reasons for drinking preferred beverages, Chinese Canadians vs overall population, December 2017
Figure 50: Creating a hybrid drink, Chinese Canadians vs overall population, December 2017
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations

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