Economic and Demographic Factors Affecting the Consumer Demand for Superfruit Beverages in the United States

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Date

2015-12-09

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Abstract

There are many different types of nonalcoholic beverages available in the United States today compared to decade ago. Functionality and health dimensions of beverages have changed over the years. Currently, exotic superfruit beverages are serving as a healthier alternative to more traditional fruit juices, such as orange juice and apple juice, which contain high levels of sugar. Superfruit beverages strong emergence in the marketplace has created a major competition with traditional beverages and is providing consumers an alternative. Data from U.S. households for calendar year 2013 were used in examining demographic and economic factors affecting conditional demand for superfuit beverages through the estimation of simple demand functions. Price, age of household head, education, and region were significant drivers of consumption of superfruit beverages. Orange juice was found to be a substitute in consumption for superfruit juice. All of these results can be used to help beverage companies better understand their competition and allow them to develop more effective beverage marketing strategies in the United States. Traditional fruit juice suppliers can now know where they stand in comparison to the emerging superfruit juice market that continues to grow.

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superfruit beverage, Neilsen data, consumer demand

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