EXECUTIVE SUMMARY In 2007, and again in 2011, market research institute, GfK, ran a studycommissioned by BCME to gain insight into consumer perceptions of thebeverage can and its position in the market. Now, the study has beenrepeated in order to understand whether and how usage and attitudestowards beverage packaging have changed1 over time.

Specific objectives of the research were to:

• Identify what is important to consumers in relation to beverage packaging (e.g.recyclable, easy to open etc.)

• Identify preferences by product category (CSDs, energy drinks, other non-alcoholic drinks, beer, other alcoholic drinks)

• Identify preferences by occasion

The results of the research have shown a positive upward trend in popularity for thecan, particularly with younger age groups. That drinks from cans taste good isrecognised by a significant 71 per cent of people – a 16 per cent increase on 2007;from the age groups questioned, 14-17 year olds demonstrated most frequentlypurchased canned beverages.

1 The study sample was 850, 15-54 year olds in the UK who bought, or have influence on the type of

drinks packaging bought. Interviews were conducted online in Feb 2016.

Consumer perceptions of the beveragecan and its position in the market

CONSUMPTION EVOLUTION

Cans are growing in popularity and are increasingly the consumer’s drink packs ofchoice. They are most often consumed in the home (58 per cent regularly drink fromcans at home), and at least while at work.

In 2007, 36 per cent of consumers in the UK said the can was the pack they drankfrom most. This number has increased to 40 per cent. On average, 55 per cent saidthey currently drink a canned beverage at least once a week. This number is higherfor males at 61 per cent, and slightly less for females at 48 per cent.

Splitting usage figures by age, 77 per cent of 14-17 year olds will drink from a can atleast once a week – compared to 63 per cent in 2007. It’s a number that makessense when you consider that the greatest rise in can usage can be seen in theenergy drinks market where 52 per cent of energy drink consumers said the can wasthe pack they drank from most. In 2007 that figure was just 34 per cent.

TOPLINEEnergy drinks brands are very active on social media. For example, Redbullhas 5.5m followers on Instagram.

NEEDS AND BENEFITS As part of the study, GfK investigated just what is it that consumers love so muchabout cans.

Respondents were first given a list of properties that might be associated with ageneral drinks pack and were then asked how important each was to them. That thedrink tastes good was judged important by 80 per cent of the audience, followed by73 per cent that added tasting ‘fresh’ as crucial. Also ranking highly were ‘goodvalue for money’ (66 per cent) and ‘easy to drink from’ (64 per cent).

When the respondents’ desired drink attributes were cross-compared to theirperception of the can’s assets, being easy to drink and good value for money clearlystood out as attractive qualities for the can.

Perceptions, as you might expect, change when you compare age and gender:

• In general, females consider cans more favourably than males, particularlyaround taste and convenience/safety.

• Consumers aged 35+ believe that the can’s recyclability is its strongest feature.

Perhaps surprisingly, the way that cans are viewed in terms of recyclability is wherethe most variation can be seen between age groups. 18-34 year olds perceived thatcans should score higher for convenience than recyclability, while 14-17 year oldsplaced recyclability ahead of convenience, yet behind taste.

TOPLINETaste remains the key consumer need but value for money andease/practicality of drinking are close behind.

Pack appearance is growing in importance but is not yet a key consumerneed.

TOPLINE14-17 year olds want packs to looks cool and attractive (and are lessinterested in recyclability).

35-54 year olds are the most into recycling and price conscious. They wantpacks to be sturdy and tamper proof.

ATTITUDES TOWARDS PACK FORMATS

If we look at the consumer’s personal perception of cans, a number of statementsstand apart.

That drinks from cans taste good is recognised by a significant 71 per cent of people– a 16 per cent increase on 2007.

That the look and design of the can is nice, has also gained in credence since 2007when just 16 per cent of people agreed with the statement. That figure is now 44per cent – and with more exciting and innovative can designs hitting the market, it’sa figure that might be expected to rise further in years to come.

The light metal body of the can has given it the appearance of being sturdy andunlikely to break, this separates the can from some of its market competitors. Asignificant 62 per cent of Brits agreed with this statement, compared to 26 per centwhen asked the same question about glass bottles.

Even better, with all the benefits the can provides, consumers increasingly believe thecan is good value for money; 64 per cent would say this is true in 2016 compared to35 per cent in 2007.

TOPLINECans are seen as delivering a good tasting product in an easy to drink,recyclable pack, offering good value for money.

ATTITUDES TO RECYCLING

Respondents answered questions about the environmental attributes of drinkspackages as well as their own general attitudes towards recycling. In 2007, the UKwas already supportive of recycling with 77 per cent saying that they at least try torecycle most things. In 2016, this figure has increased further to an impressive 89 percent.

What’s more 52 per cent believe it is important to consider the environment whenchoosing a drinks pack.

Cans are seen as equally environmentally friendly as glass bottles – and more so thanplastic bottles or cartons. Specifically, 60 per cent would say cans are environmentallyfriendly because they are recyclable.

Regarding the demographic split of respondents, 14-17 year olds were about aslikely to rate environmental considerations as important as 35-54s (52 per cent vs. 56per cent). The 18-34s were less concerned (49 per cent).

That consumers care about the environment is good news for the can which is100% recyclable and made from permanently available materials. Encouragingly, 74per cent are aware of this and believe that all, or the majority of recycled cans aremade into new products. Just 1 per cent thought that beverage cans are not at allrecyclable.

Tying closely to this statement, 68 per cent of people would like to be able to recyclemore in their workplace. Outside of the workplace, 78 per cent said they would bemore encouraged to recycle if there were more recycling bins in public places.

TOPLINEOne of the key messages that groups such as the industry seek toassociate with the can, is its standing as a permanently available material.

The considered importance of the environment in relation to drinks beingpurchased is being driven by 14-17 and 35-54. 18-34s are more indifferent.

Home is where we recycle the most with just 17 per cent of cans beingthrown away.

CONCLUSION

The results of the research reveal a positive story for the canned drink. There’s adefinite upward trend in popularity for the can with particular markets, energy/sportdrinks, driving can market growth.

Keeping a good taste/temperature is the key benefit sought when consumers choosedrink packs. Second is convenience, followed by recyclability and looks; in each ofthese areas the performance of cans against other packs has improved.

For those responsible for the production and marketing of canned alcohol and/orsoft drinks, the insights provided by this research can be used to support marketingstrategies, to identify which demographic groups to target in order to drive growthand which key occasions to capitalise on.

To learn more about the beverage can industry in the UK, visitwww.canmakers.co.uk

Young Canned Drinks Consumers14-17s have a high frequency of purchase of cans vs. other age groupswith 30% stating buying “once a day / most days”. This is expected, giventhe rise in the consumption of canned energy drinks between 2007 and2016.

14-17s are mostly consuming cans “at home occasions”.