MAKING IT BIG IN BEVERAGE: ONE EYE ON THE CONSUMER AND ONE EYE ON THE COMPETITION

By
FMCG and Retail | 18-10-2018

Competing in the beverage categories is a tough business. Shelf space is limited; shoppers buy beverages for various needs and motivations; and they are faced with an abundance of choice. Keeping a close eye on consumer needs, as well as on the performance of like-categories, can avert falling behind in the beverage game.

In 2017, Kiwi shoppers spent approximately $3.3 billion on beverages within New Zealand’s supermarkets. While beverages are experiencing dollar growth, beverages as a whole have grown behind total market value for three of the last four years. Had beverages continued to grow at the same rate as the total market, they would have been worth an additional $53M in 2017.

Had beverages grown at the same rate as the total market, they would have been worth an additional $53M in 2017

ONE EYE ON THE COMPETITION

Looking at beverages from a macro perspective and comparing growth rates across like segments shows us two things: the achievable growth across different beverage segments in the store; and the underlying consumer motivations contributing to the rise or fall of those segments. By looking across the different locations where beverages are ranged in the supermarket, we can see where consumers are shifting their spend at a top line, and which underlying segments are driving those shifts.

NZ Beverage Report Article one eye on the consumer and one eye on the competition

ONE EYE ON THE CONSUMER

The four major consumer trends impacting beverages at a global and local level are convenience, premiumisation, a focus on health & wellness and consumer experimentation. Offering valuable products to meet consumer needs will always be central in achieving growth. Looking  across different beverage segments demonstrates how extensively shopper profiles can vary:

  • Tea drinkers are more likely to be aged over 60; more likely to avoid foods that are unhealthy; and more likely to make an effort to eat 5+ fruits and vegetables per day.
  • Herbal tea drinkers are more likely to be female and aged 30-60. They make more effort to balance healthy eating with busy lifestyles; and are more likely to buy organic food.
  • Iced chocolate drinkers are more likely to be male, and aged 10-39. They're driven by convenience; almost three times as likely to say they buy takeaway food to eat at home; and try to dine out once a week when compared to the total population.
  • Smoothie drinkers are more likely to be female and aged 10-29. They’re more likely to call themselves a food connoisseur than the general population and try to eat out once a week. They also have a tendency to prefer organic and additive free products.
  • Those who drink coconut water are more likely to be between the ages of 20 and 39.  They like to try new things and are more likely than the population to be concerned about the amount of sugar in their diet.

Looking to other beverage segments can be a good indicator of what growth can be achieved. Ultimately, beverage players who are agile and able to focus innovation to capitalise on the four consumer trends will be best placed to grow ahead of the overall beverage market.

Methodology

SOURCES
  • Nielsen Consumer Media Insights (CMI) | All Respondents 10+ | FY 2017
  • Nielsen Scantrack | Total NZ Supermarkets | Period: MAT 31/12/2017 vs MAT 5YA
ABOUT NIELSEN CONSUMER AND MEDIA INSIGHTS (CMI)

In this environment, breadth of understanding of consumer attitudes, media consumption and their day to day behaviours is essential. Nielsen Consumer and Media Insights provides views of consumers you want to identify, understand and then reach. Meaning you don’t rely on too narrow a view of a customer. The data is gathered via an independently audited survey of 11,000 New Zealanders aged 10+. It uses mixed methodology of face-to-face (75%) and online (25%) interviews, combined with a self-completion diary. The sample is then weighted to Statistics NZ population data for national representation.

Tagged:  LOCAL  |  DEMOGRAPHICS  |  SHOPPER  |  CONSUMER  |  HEALTH AND WELLNESS  |  GROCERY  |  ALCOHOLIC BEVERAGES

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