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03.18.2009

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Sugar and Sweeteners from a Consumer Perspective

Sugar and Sweeteners from a Consumer Perspective documents consumer perceptions about sugar and examines in-depth the connections consumers make between sugar and juice, occasions for avoidance and use (including with children), and the dynamics of shopping for sweetened products.

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For more Hartman Group articles on SUGAR and SWEETENERS, click here...

07.18.2007 Demon Ingredient: High Fructose Corn Syrup

06.14.2006 Sugar and the Consumer

03.15.2006 The Death of Soda

01.23.2006 How sweet it is...or isn't: Consumer perceptions of sugars and sweeteners

06.16.2005 Why Selling on Health Benefits Alone May Be a Losing Proposition

06.02.2005 What's on the Label?

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A “Real” Sweet Debate: Cane Sugar or Alternative?

For generations of consumers, sugar has been an integral part of personal and social occasions centering on indulgence, celebration and reward. Starting in the 1970s, however, rising sentiment portraying sugar as a “demon” gained momentum culminating with the rise in popularity of the Atkins and South Beach Diets, both of which “taught” consumers to avoid refined white sugar and high fructose corn syrup.

Today, we see sugar, sugar alternatives and artificial sweeteners as ingredients consumers continue to consciously avoid consuming on a daily basis (Figure 1).

“Real” Sugar vs. Stevia and Alternatives: The Rebirth of CSDs?

Our cultural relationship with sugars and sweeteners is as complex as the gamut of emotions delineating human existence itself: On one hand, we hate the idea that certain sweeteners, like high fructose corn syrup or aspartame, are thought to make us fat or have negative health effects. On the other hand, we treasure the moments when indulgent fantasies become reality, and we have a glass of thirst-quenching soda, an ice cream sundae or a nice chocolate chip cookie and a glass of milk.

Case in point for these complex emotions are the general decline of carbonated soft drink core brand sales inside the U.S. marketplace. Many of these brands once had the aura of invincibility that most consumer packaged goods (CPG) companies have always coveted. One possible explanation for the decline of classic CSD brands is that there is simply more competition from other, newer beverages on the market. Moving beyond this, we look to the broader culture for clues, and can confirm that, yes, consumers are seeking more entertainment and variety from alternative beverages, and view some of the largest iconic CSD brands much as they do other basic commodities (e.g., as gasoline or electricity).

In the case of CSDs and their complex relation with consumer perceptions of sweeteners, we notice that iconic CSD brands are symbols of “high sugar” to consumers primarily because of their use of high-fructose corn syrup (HFCS) among other sweeteners. While CSD manufacturers struggle to move beyond the stigma of HFCS, they do so in the shadow of the fact that Americans have become afraid of sugar even though they used to embrace it happily. Anxieties around “bad health” and near-term bodily effects of sugar have caused consumers to target the products that epitomize excess sugar in their minds. Soda, then, lines up in the crosshairs of the consumers' hit list.

What drives CSD manufacturers crazy is that sugar consumption itself doesn’t appear to be decreasing much, even among those who don’t drink soda anymore. The explanation lies in understanding shared collective notions of basic cultural constructs, like sugar and soda, and their interrelationship. Unfortunately for CSD brands, many of the same dynamics at play in 2006, when CSD's began their decline in sales, are still at play today, where when taking media reports at face value, you might surmise that the growing consumer disdain for soda stems from our national obsession with obesity, weight management and wellness in general. Of course this is the challenge with media reports; they always portray straightforward cause-and-effect scenarios, which prove much too simplistic when compared to the chaos that is everyday life.

Simply put, we do not foresee a day in the near future in which consumers will be consuming higher levels of carbonated soft drinks — be they conventional, alternative or diet — than they have in the past 10 years. Note, however, this does not mean: (a) consumers will abandon the category altogether or that (b) consumption will soon be in free-fall (more on this later).

Like all macro trends, the root causes here are complex and inter-related because of:

Concern with sugar. Without question, the single biggest driver of out-migration in the CSD category is the overall desire of consumers to reduce the amount of sugar in their everyday diets. Note that this desire is, itself, driven by its own complex, inter-related set of concerns, which include: health, nutrition, type II diabetes, obesity, energy, ADHD, hyperactivity, mental health, depression, etc. And while some consumers continue to address this concern by opting for diet CSDs, we see this percentage shrinking in the coming years with the growing concern expressed for all manner of sugar substitutes — be they artificial or natural.
Overall concern with health. Moving beyond a singular focus on sugar, consumers also express concern that the combination of sugar and/or diet sweeteners, carbonated soda water, artificial colors and flavors, and other artificial ingredients simply cannot prove beneficial to one's long-term health prospects.
Desire to drink more water. In addition to the straightforward perception (by most consumers) that water is simply the healthiest beverage alternative, we also note that an increasingly active consumer base (exercise, fitness, walking, on-the-go, etc.) much prefers the thirst-quenching properties of water, especially when compared to traditional CSDs. As consumers frequently lament, “If you're truly thirsty, the last thing you want to drink is soda...”
Desire for more interesting flavors. This should be no surprise to anyone who has recently visited the beverage aisle of any upscale grocery retailer. Like every other consumer category, beverages are prone to ongoing trend toward specialization and differentiation (i.e., fancification) in the marketplace.
Weight management. While it's certainly true that consumer reduction in CSD consumption is related to growing concerns with obesity and weight management, we place this factor fifth in terms of overall importance. We should also note here that weight management-conscious consumers appear to be as (if not more) concerned with overall carb counts of specific soft drinks (regular or diet) as they are calories.

Take Away

Interested parties should focus on offering truly innovative beverages that make an appropriate match for emerging non-CSD occasions.

Whether because of a felt need to decrease traditional CSD consumption, to drink more water or to experiment with alternative beverages, consumers are increasingly demanding more innovative beverages that provide a "better fit," for their contemporary lifestyles. So, why not strive to meet those needs with truly innovative products? In the area of diet CSDs, there have been a long line of alternative sweeteners utilized and then walked off a cliff, simply because consumers don’t really feel good about drinking such products, and in fact will openly describe feelings of guilt about finding it necessary to participate in “diet products.”

It’s hard to imagine that stevia will save the day. With regard to a switch to cane sugar in huge core CSD brands, while cane sugar isn’t HFCS, there’s still this sticky problem about how consumers view sugar, sweeteners, and well, we think you get the picture…

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