CPG Bites: The Make or Break Factor | Wine Edition
What’s important is the taste
Published on March 26, 2021
According to Statista, the Canadian wine market is expected to reach $16,805 million USD in 2021. The market is expected to grow annually by 5.70% (CAGR 2021-2025). In relation to total population figures, per person revenues of $441.44 USD will be generated in 2021. The average per capita consumption stands at 16.0 L. With the rise of alternative wine formats coming into the market (cans, boxed wine), what do brands need to keep top-of-mind when they venture into new product development?
All things considered, taste is the clear deciding factor.
From Euromonitor International, still light grape wine continued to dominate sales of wine in 2019, and also maintained solid total volume growth. Although still red wine remained the largest category within wine, followed by still white wine, it was rosé wine which continued to see the strongest total volume growth in 2019, due to its low base and the widening range of products available.
With this in mind, Caddle asked: What do consumers care about in their wine?
Well, taste ranks as the number one consideration across all wine categories. Taste leads by up to 3x more than the second most important factor: where it is made. Interestingly, consumers that purchase iced wine consider where it is made about 10 basis points more than the other wine categories.
As it stands, other factors such as sustainable packaging, calorie count, organic/gluten-free, format/sizes, and brand’s reputation have little impact on the consumer decision-making process. When it comes to wine, taste is at the forefront of consumers’ minds.
The future is female when it comes to taste
When we compare differences between men and women, women take the lead for every category of wine in terms of taste influencing their purchase decision. On the other hand, men comparatively care more about where the wine is from.
From the following options, what is most important to you when you consider purchasing…
Main Takeaway
Brands that differentiate on taste will be able to claim their stake in the Canadian wine market. Women are leading the charge for the wine category when it comes to the importance of taste. Honing in on taste preferences is an important consideration when brands are in product development in the coming years.
Caddle also looked into other alcohol categories in the Canadian market, including beer, spirits, and ready-to-drink. Contact us to get the free full report. See how taste is also the number one factor for the sparkling water category.
*Disclaimer: all data presented is owned by CaddleⓇ and has a Margin of Error of 1% or lower.
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CPG Bites: Taste is Key to Sparkling Waters' Success
Sparkling water is prime to compete for beverage of choice when relaxing at home
Published on January 18, 2021
According to Statista.com,
Retail sales of plain sparkling water amounted to around $555.64 million CAD ($435.7 million U.S.) in Canada in 2018, making it the most popular type of carbonated water. Sales of flavoured sparkling water are, however, expected to outperform sales of plain sparkling water in coming years in Canada.
RETAIL SALES VALUE OF SPARKLING WATER IN CANADA FROM 2015 TO 2022
BY TYPE (IN MILLION U.S. DOLLARS)
SO, WITH THE RISING DEMAND, WHAT DID CADDLE FIND OUT ABOUT CONSUMPTION? 50% of consumers said they have never consumed flavoured sparkling water, while 23% consume sparkling water daily or multiple times per day.
Brands have one question in mind: What factors make a good flavoured sparkling water?
Taste/flavour is the clear deciding factor when it comes to why consumers drink flavoured sparkling water, followed by low calorie count. 1 in 3 consumers selected taste/flavour as most important when selecting a sparkling beverage
Only looking at the consumers that drink flavour sparkling water, we dove into when they consume it most, and here’s what we found: 54.9% said when relaxing at home, 9.9% said when out and about, 8.9% said when eating out, 8.5% said while working, and 8.3% said at an event or social gathering. This held true among all demographics. (n = 4,756)
Main Takeaway?
BRANDS BUILT ON TASTE WILL WIN IN THE LONG-TERM.
See more research-based insights from Caddle here.
*Disclaimer: all data presented is owned by CaddleⓇ and has a Margin of Error of 1% or lower.
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CPG Bites: Is cereal a breakfast food or a snack food?
Redefining the Cereal Category
Published on January 5, 2021
According to IBISWorld,
There has been conflicting trends over last five years to 2020, hampering the Cereal Production industry in Canada. Demand has waned for cereal products as consumers shifted to pricier breakfasts as disposable incomes recovered. Moreover, as people returned to work, they had less time to prepare breakfast. Instead, Canadians opted to buy food at cafes or coffee shops, decreasing demand for cereal.
What’s more, diet trends are on the rise, with intermittent fasting being the most popular diet trend among consumers. 40% of consumers have already tried intermittent fasting, with breakfast being the most likely meal they give up. This may be the new cereal killer threatening the humble cereal category.
What does this mean for cereal brands?
Caddle asked the questions and here are the answers:
Have you heard the phrase: Good habits start in the morning? Well, Caddle found out that consumers who eat cereal for breakfast are stickier compared to consumers who eat cereal as a snack throughout the day.
HOW OFTEN DO YOU EAT CEREAL?
Habitual Cereal-ists
Cereal Snackers
But, are there any generational differences? Yes!
Gen Z snacks more than the average consumer:
- More than 14% of Gen Z cereal snackers consume daily
- Functional products are logical choice for innovation in cereals
- Gen Z are all about taste, but as consumers age, healthy options become more important
Generation Z
HOW OFTEN DO YOU EAT CEREAL?
Key Takeaways
People are asking more of cereal
1. “Cereal for breakfast” consumers remain the most lucrative for cereal brands
2. Healthier options & functional products are areas of innovation for the cereal aisle
So, is cereal a breakfast food or a snack food?
This is important because with increasing diet trends like intermittent fasting, the morning breakfast cereal occasion is likely to be threatened. Consumers have cereal playing the biggest role during breakfast, but younger generations, such as Gen Z, are letting cereal shine throughout their day as a snack food item.
*Disclaimer: all data presented is owned by CaddleⓇ and has a Margin of Error of 1% or lower.
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