Although many studies and surveys have shown that consumers have a preference for local when it comes to some of their food purchases, the same cannot be said for beverages. In a recent Insights from Nielsen, the market research firm highlights that consumers are showing preference for multinational brands in a growing number of beverage categories.
In the Nov. 21, 2017, Insights piece titled “When it comes to beverages, global brands are quenching consumer thirsts,” Nielsen notes that coffee, tea and mineral/bottled water are seeing a stronger influence from global brands.
“Looking at global preferences in the water category (mineral/bottled), just 30 percent of global respondents prefer local brands over multinational ones,” the Insights states. “The same is true for coffee and tea, with just 29 percent of respondents expressing a preference for local brands. The preference for global brands is even more pronounced when it comes to carbonated beverages (18 percent prefer local), alcohol (16 percent prefer local) and energy/sports drinks (14 percent prefer local).”
Based on the “Regional Preference for Beverages from Local Brands” chart in the Insight, tea and coffee had the highest regional preference in North America, with more than 20 percent naming it. Additionally, the energy and sports drinks category was the lowest, with regional preference in North America of approximately 10 percent indicating the categories.
However, the Insights piece does note that the regional attribute holds more clout in other regions and cultures, including Southeast Asia, Latin America, Africa and the Middle East.
“The type of tea consumed in Egypt, Pakistan and Saudi Arabia, where preference is heavily skewed toward local brands, is notably different [from] global tea products. For example, it is more common to consume loose tea rather than bags/sachets, and local tea products are generally stronger in flavor than Western teas. Similarly, in Egypt and Saudi Arabia, there is more preference for local Arabic coffee than western coffee,” said Gaurang Kotak, associate director for Nielsen Retail Measurement Services, in a statement.
