Dive Brief:
- Consumers make about 72 fewer in-home or away from home beverage purchases than they did 10 years ago, according to recent research from NPD.
- When at home, consumers first opt for brewed coffee, followed by soft drinks, with milk and iced tea tied for third.
- Bottled water is the fastest-growing segment for in-home consumption. But that growth has come up against recycling and environmental concerns surrounding the plastic bottles the industry generates.
Dive Insight:
The juice industry has been especially hurt by this dip in consumer interest, suffering from sugar-related concerns. Still, manufacturers have not given up on innovation to improve sales for the category, experimenting with exotic ingredients, cold-pressed production and eye-catching or convenient packaging.
Although soft drink sales are declining and sugary drink sales taxes continue to pop up across the country, carbonated beverages are still the key revenue generator for outside-the-home purchases, particularly at restaurants and commercial foodservice outlets. Dr. Pepper Snapple Group's 3% increase in third quarter net sales reflects consumers' persistent love for the soda category.
At the center of a larger beverage discussion is the question of how much the segment can grow and what manufacturers can do to balance against losses. Coca-Cola is looking beyond soft drinks to fuel growth and satisfy consumer thirst for better-for-you products, including investments in its Venturing and Emerging Brands portfolio, such as L.A. Gloe and its popular aloe water brand.