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The Kids Food and Beverage Market in the U.S., 7th Edition - Product Image

The Kids Food and Beverage Market in the U.S., 7th Edition

  • ID: 2780248
  • January 2014
  • Region: United States
  • 196 Pages
  • Packaged Facts

To put the market for kids' food and beverage in context, it is estimated that retail sales of all food and beverages in the U.S. will reach $639 billion in 2013 with kids' food and beverages accounting for roughly 3.5% of sales. In 2013, total value of kids' food and beverage is estimated to be worth $23.2 billion.

While the kids' market can be quite complex, this report has focused on seven core food and beverage categories in which marketers have a strong tendency to target kids: dairy products, snacks, frozen food, beverages, cereal, shelf-stable meals, and produce.

Importantly, growth of kids' food and beverage appears to be outpacing that of the total market, up 4.4% from 2012-2013 compared to 2.9% of traditional food and beverages in the same categories. This is why makers and marketers of packaged goods are turning to America's youngest consumers to boost sales. Moreover, the kids' food market is still in its infancy - providing additional incentive for players to innovate new product lines that can be adapted to kids' needs and desires.

However, marketing kids' food and beverages can be a tricky business. While kids' food and beverages are targeting READ MORE >

Note: Product cover images may vary from those shown

Chapter 1: Executive Summary

- Market definition
- Channels covered
- Kid population factors
- Figure 1-1: U.S. Child Population by Age Group, 2012
- The parent demographic—25-44 year olds
- Figure 1-2: U.S. Households by Presence of Children, 2000-2012
- The grandparent factor
- The Millennial mom
- Race and ethnic influence
- Table 1-1: U.S. Child Population by Age Group and Race/Ethnicity, 2012 (in thousands)
- Hispanics: The power of family
- Figure 1-3: U.S. Households by Presence of Children and Hispanic origin, 2012
- The obesity epidemic has immediate and long-term impact on market
- Industry labeling initiatives
- Total retail kids food and beverage sales at $23 billion in 2013
- Table 1-2: U.S. Retail Sales of Kids Foods and Beverages,
- 2009-2013 (in billions of dollars and percent change)
- Figure 1-4: U.S. Retail Sales of Kids Foods and Beverages, 2009-2013 (in billions of dollars)
- Kids' food and beverage performs well in key categories
- Table 1-3: Overview of IRI FDMx-Tracked Kids Food and Beverage Sales in Selected Categories, 2013 (in billions of dollars and percent)
- Sales of kids' food and beverage to approach $30 billion by 2018
- Table 1-4: Projected U.S. Retail Sales of Kids' Food and Beverages, 2013-2018 (in billions of dollars and percent)
- Figure 1-5: Projected U.S. Retail Sales of Kids' Food and Beverages, 2013-2018 (in billions of dollars)
- Market opportunities
- Marketers: Kids Dairy Products
- Marketers: Kids Snacks
- Marketers: Kids Frozen Foods
- Marketers: Kids Beverages
- Marketers: Kids Cereal
- Marketers: Kids Shelf-Stable Meals
- Marketers: Kids Produce
- Marketers: Foodservice
- Marketers must tread carefully when targeting kids
- Marketing strategies
- Innovative formulation creates kid appeal
- Where consumers shop for food
- Table 1-5: Type of Store(s) Shopped on Most Recent Grocery Shopping Trip, 2013 (in percent of grocery shoppers)
- Technology is changing how consumers shop for groceries
- Kids influence parents' grocery choices
- Figure 1-6: Agreement with Statement, “My Kids Plan an Important
- Role in the Groceries I Choose”, 2013
- Moms are more likely to consult kids when making food purchases
- Kids have more influence in Hispanic households
- Older kids are more likely to help make purchase decisions
- Move over breakfast, parents say lunch is the most important meal
- Table 1-6: Parents' Attitudes toward Meals, by Presence of Children in Household by Age, 2013 (index)
- Parents with young kids are most influenced by coupons and nutrition
- Parents find advertising helpful when choosing kids' products
- Parents don't like kids' pestering, but find it hard to resist

Chapter 2: Market Context

- Highlights
- Scope of Kids' Food and Beverage Market
-- Methodology: Making the cut
-- Channels covered
- Factors to Market Growth
-- Shifts in the U.S. Population
-- Table 2-1: U.S. Population by Age Group, 2010 and 2012(in thousands)
-- Static child population limits market opportunity
-- Figure 2-1: U.S. Child Population by Age Group, 2012
-- The parent demographic—25-44 year olds
-- Figure 2-2: U.S. Households by Presence of Children, 2000-2012
-- The grandparent factor
-- The Millennial mom
-- Race and ethnic influence
-- Figure 2-3: U.S. Population by Race/Ethnicity, 2012
-- Table 2-2: U.S. Child Population by Age Group and Race/Ethnicity, 2012 (in thousands)
-- Asians: The healthy consumer
-- Hispanics: The power of family
-- Figure 2-4: U.S. Households by Presence of Children and Hispanicorigin, 2012
-- Macroeconomic Factors
-- Decline in household income provides impetus for thrifty shopping habits
-- Figure 2-5: U.S. Median Household Income, 2007-2012 (inflation-adjusted dollars)
-- Increasing rates of unemployment contributor to lower household income
-- Figure 2-6: U.S. Unemployment and Underemployment, 2007-2013
-- Consumer confidence plays a role in purchase decisions
-- Figure 2-7: Consumer Confidence, 2007-2013
- The Health Factor
-- The obesity epidemic has immediate and long-term impact on market
-- Short-term effects
-- Long-term threat: Continuing the cycle
-- Government intervention for prevention of obesity
-- Let's Move! campaign
-- Let's Move! makes an impact…
-- …but there's more to be done
-- The Healthy, Hunger-Free Kids Act
-- Nutrition labeling and education to aide consumer decisions
-- Industry initiatives
-- Nutrition Keys
-- Figure 2-8: Nutrition Keys
-- Clear on Calories
-- Figure 2-9: Clear on Calories
-- Nu-Val
-- Figure 2-10: Nu-Val Nutritional Scoring
-- Nestlé Nutritional Compass
-- Figure 2-11: Nestlé Nutritional Compass
-- Foodservice labeling requirements improve nutritional transparency
-- Figure 2-12: McDonald's Menu Board, 2012
-- The kids' menu

Chapter 3: Market Size and Growth

- Highlights
- Industry Context
-- Total retail kids food and beverage sales at $23 billion in 2013
-- Table 3-1: U.S. Retail Sales of Kids Foods and Beverages,2009-2013 (in billions of dollars and percent change)
-- Figure 3-1: U.S. Retail Sales of Kids Foods and Beverages,2009-2013 (in billions of dollars)
-- Kids' food and beverage performs well in key categories
-- Table 3-2: Overview of IRI FDMx-Tracked Kids Food and Beverage Sales in Selected Categories, 2013(in billions of dollars and percent)
-- Room for growth
-- Sales of kids' food and beverage to approach $30 billion by 2018
-- Table 3-3: Projected U.S. Retail Sales of Kids' Food and Beverages, 2013-2018 (in billions of dollars and percent)
-- Figure 3-2: Projected U.S. Retail Sales of Kids' Food and Beverages, 2013-2018 (in billions of dollars)
- Market Composition
-- Dairy products and snacks capture largest share of kids' food sales
-- Table 3-4: IRI FDMx-Tracked Sales of Kids' Food and Beverages by Category, 2013 (in millions of dollars and percent)
-- Figure 3-3: IRI FDMx-Tracked Sales of Kids' Food and Beverages by Category Share, 2013
-- Snacks and produce offer strongest growth in market
-- Table 3-5: IRI FDMx-Tracked Sales of Kids' Food and Beverages
-- by Category, 2009-2013 (in millions of dollars and percent)
-- Figure 3-4: IRI FDMx-Tracked Sales of Kids' Food and Beverages by Percent Growth 2009-2013
-- Kids' dairy products gain momentum
-- Table 3-6: IRI FDMx-Tracked Sales of Kids' Dairy Products,2009-2013 (in millions of dollars and percent)
-- Figure 3-5: IRI FDMx-Tracked Sales of Kids' Dairy Products,2009-2013 (in millions of dollars)
-- Yogurt dominates kids' dairy product category
-- Figure 3-6: U.S. Sales of Kids' Dairy Products by Segment Share,2013
-- Kids' snacks get boost through health and wellness positioning
-- Table 3-7: IRI FDMx-Tracked Sales of Kids' Snacks, 2009-2013(in millions of dollars and percent)
-- Figure 3-7: IRI FDMX-tracked Sales of Kids' Snacks, 2009-2013(in millions of dollars)
-- Kids' snacks fairly evenly divided between four segments
-- Figure 3-8: U.S. Sales of Kids' Snacks by Segment Share, 2013
-- Families appreciate the convenience of frozen foods
-- Table 3-8: IRI FDMx-Tracked Sales of Kids' Frozen Foods, 2009-2013 (in millions of dollars and percent)
-- Figure 3-9: IRI FDMx-Tracked Sales of Kids' Frozen Foods, 2009-2013 (in millions of dollars)
-- Breakfast food commands largest share of kids' frozen food sales
-- Figure 3-10: U.S. Sales of Kids' Frozen Foods by Segment Share,2013
-- Kids' beverages sales slow and steady
-- Table 3-9: IRI FDMx-Tracked Sales of Kids' Beverages,2009-2013 (in millions of dollars and percent)
-- Figure 3-11: IRI FDMx-Tracked Sales of Kids' Beverages,2009-2013 (in millions of dollars)
-- Aseptic juices—a.k.a. juice boxes—are iconic kid beverage
-- Figure 3-12: U.S. Sales of Kids' Beverages by Segment Share, 2013
-- Kids' cereal suffers from high-sugar association
-- Table 3-10: IRI FDMx-Tracked Sales of Kids' Cereal, 2009-2013(in millions of dollars and percent)
-- Figure 3-13: IRI FDMx-Tracked Sales of Kids' Cereal, 2009-2013(in millions of dollars)
-- Cold cereal captures majority of kids' cereal sales
-- Figure 3-14: Sales of Kids' Cereal by Segment Share, 2013
-- Shapes define kids' shelf-stable meals
-- Table 3-11: IRI FDMx-Tracked Sales of Kids' Shelf-Stable Meals, 2009-2013 (in millions of dollars and percent)
-- Figure 3-15: IRI FDMx-Tracked Sales of Kids' Shelf-Stable Meals, 2009-2013 (in millions of dollars)
-- Canned meals capture 80% of the shelf-stable kids' meal category
-- Figure 3-16: U.S. Sales of Kids' Shelf-Stable Meals by Segment Share, 2013
-- Package innovation provides boost to kids' produce sales
-- Table 3-12: U.S. Sales of Kids' Produce, 2009-2013(in millions of dollars and percent)
-- Figure 3-17: IRI FDMx-Tracked Sales of Kids' Produce,2009-2013 (in millions of dollars)
-- Shelf-stable fruits account for the majority of produce sales
-- Figure 3-18: U.S. Sales of Kids' Cereal by Segment Share, 2013
- Market Opportunities
-- Made by mom = made with love…
-- Kidfresh
-- Figure 3-19: Kidfresh Super Duper Chicken Nuggets, 2013
-- Table 3-13: Kidfresh Category Performance in IRI FDMx-Tracked Sales, 2013 (in millions of dollars and percent)
-- Mom Made
-- Figure 3-20: Mom Made Bites, 2013
-- Table 3-14: Mom Made Food LLC Category Performance in IRI FDMx-Tracked Sales, 2013 (in dollars and percent)
-- ... marketed with love

Chapter 4: The Marketers

- Highlights
- Selection criteria
- Marketers: Kids Dairy Products
-- Overview
-- Dannon succeeds with smoothies
-- Table 4-1: Dannon Category Performance in IRI FDMx-Tracked
-- Sales, 2013 (in millions of dollars and percent)
-- Figure 4-1: Dannon Danimals, 2013
-- Chobani capitalizes on health positioning of Greek yogurt
-- Table 4-2: Chobani Category Performance in IRI FDMx-Tracked Sales, 2013 (in millions of dollars and percent)
-- Figure 4-2: Chobani Champions Tubes, 2013
-- Marketers: Kids Snacks
-- Overview
-- General Mills—Master of the character licensed fruit snacks
-- Table 4-3: General Mills Inc. Company Category Performance in IRI FDMx-Tracked Sales, 2013 (in millions of dollars and percent)
-- Figure 4-3: General Mills Mott's Medleys Fruit Snacks, 2013
-- Annie's takes a healthful approach to kids' snacks
-- Table 4-4: Annie's Inc. Category Performance in IRI FDMx-Tracked Sales, 2013 (in millions of dollars and percent)
-- Figure 4-4: Annie's Homegrown Cheddar Squares, 2013
-- Clif Kid offers parents a nutritional and eco-friendly snack choice
-- Table 4-5: Clif Bar & Company Category Performance in IRI
-- FDMx-Tracked Sales, 2013 (in millions of dollars and percent)
-- Figure 4-5: Clif Kid Zbar Monster Chocolate Mint, 2013
-- Plum Kids infiltrating the kids' snack category
-- Table 4-6: Plum Inc. Category Performance in IRI FDMx-Tracked Sales, 2013 (in millions of dollars and percent)
-- Figure 4-6: Plum Kids Grammy Sammy, 2013
- Marketers: Kids Frozen Foods
-- Overview
-- Kellogg's Eggo offers convenience and playability
-- Figure 4-7: Eggo Wafflers, 2013
-- Figure 4-8: Eggo Drizzlers, 2013
-- Table 4-7: Kellogg's Co. Category Performance in IRI FDMx-
-- Tracked Sales, 2013 (in millions of dollars and percent)
-- Smucker's makes PB&J more convenient
-- Table 4-8: JM Smucker Co. Category Performance in IRI
-- FDMx-Tracked Sales, 2013 (in millions of dollars and percent)
-- Figure 4-9: Smucker's Uncrustables Reduced Sugar, 2013
- Marketers: Kids Beverages
-- Overview
-- Campbell Soup leverages stealth health by integrating veggies into juice
-- Table 4-9: Campbell Soup Co. Category Performance in IRI
-- FDMx-Tracked Sales, 2013 (in millions of dollars and percent)
-- Figure 4-10: V8 Fusion Refreshers, 2013
-- Nestlé Juicy Juice Fruitifuls exhibit strong growth
-- Table 4-10: Nestlé USA Inc. Category Performance in IRI FDMx-
-- Tracked Sales, 2013 (in millions of dollars and percent)
-- Figure 4-11: Juicy Juice Fruitifuls, 2013
- Marketers: Kids Cereal
-- Overview
-- Kellogg's comes full circle with Rice Krispies Treats brand
-- Table 4-11: Kellogg Co. Category Performance in IRI FDMx-
-- Tracked Sales, 2013 (in millions of dollars and percent)
-- Figure 4-12: Kellogg's Rice Krispies Treats Cereal, 2013
- Marketers: Kids Shelf-Stable Meals
-- Overview
-- Annie's continues to expand product lines and brand awareness
-- Table 4-12: Annie's Inc. Category Performance in IRI FDMx-
-- Tracked Sales, 2013 (in millions of dollars and percent)
-- Figure 4-13: Annie's Homegrown, 2013
-- Campbell maintains kids' soup sales by rotating character licenses
-- Table 4-13: Campbell Soup Co. Category Performance in IRI
-- FDMx-Tracked Sales, 2013 (in millions of dollars and percent)
-- Figure 4-14: Campbell's Fun Favorites Soup Ad, 2013
- Marketers: Kids Produce
-- Overview
-- Plum Kids Organics first mover in stand-up pouch packaging
-- Table 4-14: Plum Inc. Category Performance in IRI FDMx-
-- Tracked Sales, 2013 (in millions of dollars and percent)
-- Figure 4-15: Plum Kids MashUps, 2013
-- GoGo Squeez takes pouch packaging mainstream
-- Table 4-15: Materne North America Category Performance in IRI
-- FDMx-Tracked Sales, 2013 (in millions of dollars and percent)
-- Figure 4-16: Materne GoGo Squeez, 2013
-- Nature's Child combines packaging with character licensing
-- Table 4-16: Maverick Brands Category Performance in IRI FDMx-
-- Tracked Sales, 2013 (in millions of dollars and percent)
-- Figure 4-17: Nature's Child, 2013
- Marketers: Foodservice
-- Overview
-- McDonald's and the Happy Meal
-- Figure 4-18: McDonald's Happy Meal Homepage, November 2013

Chapter 5: Marketing and New Product Trends

- Highlights
- Marketing to Kids: Challenges Exist
-- Marketers must tread carefully when targeting kids
-- Marketing label claims
-- Labeling allergens
-- Fat content
-- Locally produced
-- Organic
-- No added hormones
-- Omega-3 fatty acids
-- Healthy
-- Natural
- Marketing Strategies
-- Appealing to parents
-- Marketing strategy: Good nutrition
-- Plum Organics
-- Figure 5-1: Plum Kids Facebook, September 27, 2013
-- Figure 5-2: Plum Organics, 2013
-- Marketing strategy: Healthy lifestyles
-- Capri Sun
-- Figure 5-3: Capri Sun, 2013
-- Marketing strategy: Cause marketing
-- General Mills: Box Tops for Education
-- Nestlé Juicy Juice: Fruit for All
-- Figure 5-4: Nestlé Juicy, Juice Fruit for All, 2012
-- Target: Give with Target
-- Figure 5-5: Target, Give with Target, 2013
-- Connecting with the Millennial mom
-- Marketing strategy: Blog power
-- Happy Family
-- Figure 5-6: Mom Blog, Happy Family, 2013
- New Product Trends
-- Innovative formulation creates kid appeal
-- Bite-sized perfect for kids
-- Figure 5-7: Earth's Best Kidz Baked Popcorn Chicken
-- Figure 5-8: Fresh & Easy Goodness Kettle Corn
-- Color has impact
-- Figure 5-9: Yoplait Trix
-- Shapes are fun
-- Figure 5-10: Perdue Fun Shapes
-- Figure 5-11: Popsicle featuring Hello Kitty
-- Nutrition kids need
-- Figure 5-12: Mueller's Hidden Veggie Pasta, Advertisement
-- Figure 5-13: Clif Kid
-- Figure 5-14: Vito CoCo Kids
-- Packaging leverages convenience, portion control, and playability
-- Convenience
-- Figure 5-15: Nature's Child Pudd'n Pouches
-- Figure 5-16: Lunchables Uploaded
-- Portion control
-- Figure 5-17: Fiber One Chewy Kids
-- Playability
-- Figure 5-18: Plum Kids Slam Dunx
-- Figure 5-19: YoCrunch Back to School Packaging, 2013
-- Kids' foods: It's all in the marketing
-- Character merchandising
-- Figure 5-20: Earth's Best and Sesame Street
-- Figure 5-21: Pirate Booty and SpongeBob, Sweepstakes 2013
-- Figure 5-22: Kraft Macaroni & Cheese featuring Monsters Inc.
-- Cause marketing
-- Figure 5-23: Horizon Organic DHA Omega-3

Chapter 6: The Retail Marketplace

- Highlights
- Retail Overview
-- Table 6-1: Sales of Food at Home and Food Away from Home, 2000-2011 (in billions)
-- Figure 6-1: Sales of Food at Home and Food Away from Home, 2000-2011
-- Figure 6-2: Sales of Food at Home and Food Away from Home by Share, 2011
-- Top food store retailers
-- Table 6-2: Top 20 U.S. Food Store Retailers, 2013 (in billions)
-- Table 6-3: U.S. Food Store Sales by Leading Retailers, 2000-2011 (percent)
-- Retail merger and acquisition activity
-- Where consumers shop for food
-- Table 6-4: Type of Store(s) Shopped on Most Recent Grocery Shopping Trip, 2013 (in percent of grocery shoppers)
-- Technology is changing how consumers shop for groceries
-- Handheld scanners in retail stores
-- Will digital coupons replace paper?
-- - Retailers: Food at Home
-- Overview
-- Table 6-5: Food Sales by Retail Segment, 2000-201 (in billions)
-- Figure 6-3: Food Sales by Retail Segment Share, 2000-2011
-- Traditional food retailers
-- Table 6-6: Traditional Food Retailers by Outlet Type, 2000-2011(in billions)
-- Figure 6-4: Traditional Food Retailers by Outlet Type, 2011
-- Slow growth in food sales at grocery outlets
-- Figure 6-5: Grocery Store Sales Growths, 2000-2011
-- Convenience stores expanding food mix to compete with grocery
-- Specialty stores: Small but mighty
-- Nontraditional retailers
-- Table 6-7: Nontraditional Food Sales by Outlet Type, 2000-2011(in billions)
-- Figure 6-6: Nontraditional Food Retailers by Outlet Type, 2011
-- Supercenters replacing mass merchandisers
-- Dollar stores contributing to growth of other nontraditional food retailers
-- Non-store retailers
-- Table 6-8: Non-store Food Sales by Outlet Type, 2000-2011(in billions)
-- Figure 6-7: Non-store Food Retailers by Outlet Type, 2011
-- Kids' food and beverage opportunity: Home delivery and mail order
- Retailers: Food Away from Home
-- Overview
-- Table 6-9: Food Sales by Foodservice Segment, 2000-2011 (in billions)
-- Figure 6-8: Foodservice Sales by Retail Segment Share, 2011
-- Full-service restaurants have a narrow lead in restaurant sales
-- Table 6-10: Restaurant Sales by Segment, 2000-2011 (in billions)
-- Restaurant operators must answer the demand for health on the kids' menu
-- Figure 6-10: What's Hot 2013 Chef Survey, 2013

Chapter 7: The Consumer

-- - Note on Simmons Data
-- - Highlights
-- - Purchase Decisions
-- Food products are leading category purchased
-- Opportunity:
-- Table 7-1: Purchase Decisions, 2013 (percent of U.S. adults who purchased an item in the listed category in the last 12 months)
-- Kids influence parents' grocery choices
-- Figure 7-1: Agreement with Statement, “My Kids Plan an Important Role in the Groceries I Choose”, 2013
-- Kids as joint decision makers for food purchases
-- Table 7-2: Joint Food Purchase Decision with Kids in Household, 2006-2013 (percent of U.S. adults who purchased food products in the last 12 months based on a joint decision with children in household)
-- Moms are more likely to consult kids when making food purchases
-- Table 7-3: Joint Food Purchase Decision with Kids in Household, by Gender and Mom Status, 2013
-- Kids have more influence in Hispanic households
-- Figure 7-2: U.S. Hispanic Households with Children, by Age of Children, 2012
-- Table 7-4: Joint Food Purchase Decision with Kids in Household, by Hispanic Origin, 2013
-- Older kids are more likely to help make purchase decisions
-- Figure 7-3: Yoplait Pro-Force
-- Table 7-5: Joint Food Purchase Decision with Kids in Household, by Presence of Children in Household by Age, 2013 (index)
- Parents' Attitudes toward Food
-- Move over breakfast, parents say lunch is the most important meal
-- Table 7-6: Parents' Attitudes toward Meals, by Presence of Children in Household by Age, 2013 (index)
-- Parents with young kids are most influenced by coupons and nutrition
-- Table 7-7: Parents' Attitudes toward Food Purchases, by Presence of Children in Household by Age, 2013 (index)
- Parents' Attitude toward Advertising
-- Parents find advertising helpful when choosing kids' products
-- Table 7-8: Parents' Attitudes toward Advertising, by Presence of Children in Household by Age, 2013 (index)
-- Older demographics show most concern for advertising to kids
-- Table 7-9: Advertising to Children is Wrong, by Age, 2013
-- Moms influenced by kids' food product advertising
-- Table 7-10: Advertising is Helpful in Choosing Products to Buy for Children, by Gender and Mom Status, 2013
-- Hispanics find advertising helpful in choosing kids' products
-- Table 7-11: Advertising is Helpful in Choosing Products to Buy for Children, by Select Demographics, 2013
- Parents' Attitude toward Shopping with Kids
-- Parents don't like kids' pestering, but find it hard to resist
-- Table 7-12: Parents' Attitudes toward Shopping with Kids, by Presence of Children in Household by Age, 2013 (index)
-- Moms have a hard time saying “no”
-- Table 7-13: Hard to Resist Children's Requests for Non-essential
-- Purchases, by Gender and Mom Status, 2013
-- Pester power is more effective on Hispanic parents
-- Table 7-14: Hard to Resist Children's Requests for Non-essential Purchases, by Hispanic Origin, 2013
-- Kids wield significant power in brand choice
-- Table 7-15: Parents' Attitudes toward Shopping with Kids, by Presence of Children in Household by Age, 2013 (index)
-- Moms let kids choose brand
-- Table 7-16: Children Have Significant Impact on Brands Chosen,
-- by Gender and Mom Status, 2013
-- Hispanics' kids drive brand choice
-- Table 7-17: Children Have Significant Impact on Brands Chosen,by Hispanic Origin, 2013

Note: Product cover images may vary from those shown

A long-acknowledged reality is that almost any American home with a child present is also likely a household in which a child wields substantial influence over the retail products purchased. Younger children under age 9 are a particularly influential demographic for marketers involved in the $639 billion U.S. food and beverage market as life-long dietary habits are established during this period and brand loyalty begins. Food and beverage products manufactured and marketed specifically for children account for 4% of overall industry sales with a value of $23 billion, according to The Kids Food and Beverage Market in the U.S.

Yet as influential as children are, marketers must also put forth creative effort in reaching another important segment driving today's kids food and beverage market: Millennial Moms. Like generations before them, Millennial Moms' consumer behaviors are greatly influenced by their own mothers and the parenting style they experienced growing up. The Millennial Mom today was raised by the Boomer mom of yesterday. This means that the affluence that was garnered by the Boomers was lavished on their Millennial kids. The Boomer parenting style focused on building confidence, which brought about the notion that every child deserves to be heralded for participation rather than winning. As a result, the Millennial generation continues to seek out the spotlight and revel in attention. This is why social media has become such an integral component to their lives - with constant recognition by friends and instant gratification at their fingertips.

Keeping up with Millennials as early adopters of new technology and social media is a significant challenge for marketers. Technology impacts almost everything a Millennial Mom does and buys for herself and her family - from online purchasing, checking her Facebook page, or posting a photo and location on Instagram. Millennials embrace new social media quickly, as seen by the explosive growth of Pinterest and Instagram. This means that it's essential for makers and marketers of kids' food and beverage products to have a presence in these types of social media in order to have the best opportunity to reach this important demographic. However, having a presence in social media isn't enough - it's essential to engage Millennial Moms with relevant dialogue to keep them loyal and spreading the word to their social circle. To increase relevancy, marketers should consider keeping communications short and easy to understand; offer timesaving tips and products that “do good” for the family; and underscore these efforts by being authentic in both brand and product positioning.

Note: Product cover images may vary from those shown

The kids food and beverage market is a broad and complex one, spanning numerous categories and product segments. The study qualifies a food as being for kids when it has a taste kids love; nutrition kids need; or entertainment kids crave. Taste alone is not sufficient to quality a product as being for kids. The product must meet at least one other criterion - nutrition or entertainment. This is accomplished through product formulation, packaging, and marketing. Ideally the product possesses all three of these characteristics.

Kids' foods are merchandised throughout the retail and foodservice landscapes. Retail venues include club stores, convenience stores, dollar stores, drug stores, health/natural foods stores, mass merchandisers, mainstream supermarkets, and specialty stores that carry a limited assortment of a unique mix of foods and beverages (i.e., Trader Joe's, Fox & Obel, etc.), as well as the Internet. Though kids' food and beverages are sold through nontraditional retail venues and foodservice channels, this report excludes these outlets when quantifying the market size.

Market size is based on seven food and beverage categories in which marketers have a strong tendency to target kids. These categories include dairy products, snacks, frozen food, beverages, cereal, shelf-stable meals, and produce. Packaged Fact provides both quantitative and qualitative analysis of kids' food and beverage based on both public and syndicated data sources.

Primary data sources include:

- U.S. Census Bureau retail food sales data from the Economic Census surveys, annual retail channel sales

- U.S. Bureau of Economic analysis annual estimates for consumer spending on food

- Major food and beverage company and retailer annual reports

- IRI sales tracking through U.S. supermarkets and grocery stores, drugstores, and mass merchandisers (including Target and Kmart, but excluding Walmart) with annual sales of $2 million or more

- Information on new product introductions was derived from examination of the retail milieu and from relevant trade, business, and government sources, including company literature and annual reports. The consumer demographics analysis was developed using data from primary data are Simmons National Consumer Surveys Spring 2013 from Experian Marketing Services. The report also draws on a proprietary Packaged Facts national online consumer survey conducted in February/March of 2013

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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