Following the return to normal life, both dairy and non-dairy RTD have been on an upward trend since the end of 2021. The positive trend also shows a new higher baseline suggesting higher relevancy for the overall categories. Our report, Kantar Occasion Study for Out-of-Home, reveals that people’s drinking habits are evolving with 52% of respondents saying they drink more regularly compared to pre-pandemic. The number of RTD consumption occasions for exercise, snacking, and events are also higher now than at the start of the pandemic.
The recovery of RTD drinks is also seen in the YoY growth figures of 19% for dairy and 10% for non-dairy when compared to pre-covid levels. Dairy recorded double-digit (12%) YoY growth in 2021 thanks to the enhanced relevance of dairy during the pandemic, but this then slowed to 6% the following year. However, the trend was reversed for non-dairy, with growth slipping by 4% in 2021 and bouncing back to 14% the following year. The growth has mainly been driven by more shoppers, rather than more frequent purchases, suggesting that out-of-home consumption owes its recovery to more occasions for impulse purchases and the relaxing of covid restrictions.
The core buyers of RTD dairy are kids aged 10 and below. It’s therefore important for dairy brands to leverage “back to school” and “offline schooling” to find more opportunities to get their products to into children’s lunchboxes.
Older groups, like young adults, dominate the non-dairy segment with around half of their basket size being for RTD non-dairy. This age group can be split into three major groups: young adults (21-30yo), adults (31-50yo), and senior age (50+yo), with most of the share coming from young adults and adult age-groups. Although the main occasions in RTD are social, consumers returning to their workplaces provides a new, additional occasion for RTD brands to leverage. For RTD non-dairy brands, it’s vital to increase occasions for consumption and encourage product trial through enhanced availability and visibility in-store, especially on commuting routes. Opportunities for relevant product placement that fit into daily activities, such as school, campus, and office areas, could help to attract trialists and recruit more relevant shoppers.
