US concentrates market value sales hit $1.6 billion in 2012

Press Release   •   Aug 05, 2013 16:32 BST

Value sales within the US concentrates market rose by 11% in 2012, while RTD volume sales increased by 3%.

In 2012, sales of concentrates grew 3% in RTD volume, reaching 5,140 million litres, while value sales grew by 11% to reach US$1.6 billion.

The poor flavour of most concentrates compared to carbonates, juices and RTD teas had led to declining sales of concentrates until 2011.

In 2011, Kraft introduced Mio, a sugar-free liquid water enhancer that adds flavour and visuals to the ordinary plain water, initiating a new product line within the fast declining concentrates category. The liquid water enhancer was introduced in 48ml plastic bottles, to be used to flavour water on-the-go with a squeeze of the bottle.

Each bottle claims to make up to 24 servings of 250ml drinks, with zero calories. The Mio brand was generally well received by consumers who sought flavours such as fruit punch in their water while staying away from sugary options, such as flavoured bottled water and carbonates. The manufacturer also aimed to develop a new customer base for the product by targeting young men in its advertising.

According to a recent report, 'Concentrates in the US,' Kraft Foods Inc remains the leading manufacturer of concentrates in the US in off-trade value sales terms, accounting for 66% of sales in 2012, up from 65% in 2012. The company was able to boost its value share through its 2011 launch of Mio. Kraft carries some of the most popular household brands in the category, including Crystal Light and Kool-Aid.

Crystal Light remains the number one brand in concentrates, with a 24% value share in 2012, down from 28% in 2011. The brand has suffered as many other manufacturers and private label are using the same single-serve stick packaging as Crystal Light, thus drawing away one of its prime points of differentiation.

The US concentrates market is expecting continued growth at a rate of 19% in constant value terms through to 2018, to reach a value of US$1.9 billion at constant 2012 prices. Total RTD volume sales are expected to increase by 2%, to reach 5.2 billion litres.

For more information on the US concentrates market, see the latest research: US Concentrates Market

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