------------------------------------------------------------------------------------------------------- 1.1 Market size of smoothies market
Based on Mintel’s research of UK volume and value sales of smoothies between 2003 and 2008 (referring to Appendix), Figure 1 shows the growth trends of quantity and value sales of smoothies during 2003 and 2008 in UK. As can be seen in Figure 1, sales of smoothies have kept in growth since 2003. The growth rate increased dramatically since 2004 till 2007. Between 2003 and 2007, value sales of smoothies increased by 424% and by 552% in volume growth. However, as the average price per litre for smoothies declined which in the result of new comers in smoothies market and economic downturn, the growth of both volume and value sales slowed down in 2008. (Mintel 2008)
Figure 1 : UK volume and value sales of smoothies, 2003-2008
Note: figures different from 2006 report due to the inclusion of made-to-order smoothies in this report| Source: Mintel(2008)| | | | | | | | | |
Combined the figures of volume and value sales in smoothies market from 2003 to 2008, Mintel predicted smoothies sales of the next five years after 2008 (referring to Appendix ), which shows that there still will be growth trends in both volume and value sales of smoothies, but with steady rates rather than spectacular.
1.2 Future Trends of smoothies Market
According to Mintel, market growth of smoothies will, significantly, be reliant on economic conditions. Under recession pressures, customers begin to cut back on the spending of buying non-essential food and drink items, and what’s important, consider healthy eating as a priority principle. This offer a challenge to smoothies manufacturers as smoothies can provide just what those cost-conscious need in terms of convenience, pleasure and high-value over other alternatives such as fruit juices or fresh fruit. (Mintel 2008) A consumer research did by Mintel shows that “adults are increasingly trying smoothies for the first time, and many are now drinking more smoothies than they did a year ago.” (Mintel 2008) As this becomes a current trend, manufacturers should realize that every single first-time buyer has possibility becomes a regular consumer. In other words, in such competitive market, it is essential for manufacturers to obtain that as many first-time buyers as possible who can be converted into their regular customers by discounts and other promotions that appeal to customers for more than a period of time.
From research of frequency of drinking smoothies, by demographics, July 2008 (Mintel 2008), Smoothies has attracted a large group of consumers, from different gender, region, income of people, family size, etc. with almost the same extent of preference to different groups of people. Among these, more prominent, smoothies attracts teens and young adults, especially in full-time students, almost 78% of them are smoothies drinker. Meanwhile, Mintel also indicates that in the 16+ consumer, smoothies appeals to light users more than heavy and medium use. ( Mintel 2008) Figure 2: Frequency of drinking smoothies, by demographics, July 2008 | | Any smoothies drinker| More than once a week| Once a week| At least once a month or more| Less than once a month| Don't drink them| |
All| 57| 9| 11| 15| 22| 43|
Male| 52| 9| 11| 12| 19| 48|
Female| 63| 9| 10| 19| 25| 37|
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Note: Full table can be seen in Appendix.
Taken from the GB TGI survey of around 25,000 adults
Source: GB TGI, BMRB Q2, 2008 (January-December 2007)
Smoothies drinkers are attracted by different kinds of smoothies which includes fruit smoothies, Dairy smoothies, functional smoothies, super-premium smoothies, organic smoothies, smoothies for kids and ambient smoothies. As it is show in Figure 3...