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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. Knowledge of price sensitivity, substitutes/complements and demographic profiling with respect to consumption of superfruit beverages is important for manufacturers, retailers, advertisers, nutritionists and other stakeholders from a competitive intelligence perspective as well as from a strategic decision-making perspective. Using nationally representative household level data from nearly 65,000 households, factors affecting the consumer demand for superfruit beverages was estimated. Moreover, we estimated own- and cross-price and income elasticities for superfruit beverages delineated by selected demographic segments, hence determine the competitiveness of superfruit beverages vis-à-vis conventional apple and orange juice. This information will reflect the market competitiveness and profiles of demographics consuming superfruit beverages in the United States.

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