Examples of Market Segmentation for Drinks: Demographic, Occasion-Based, and More

Market segmentation helps beverage companies understand and target diverse consumer needs. By dividing the market into smaller groups, brands can align their products and marketing strategies with specific preferences and behaviors.

This article explores three segmentation approaches for drinks: demographic segmentation, focusing on traits like age and income; occasion-based segmentation, which considers when and why people consume beverages; and other innovative methods. These examples show how segmentation drives tailored solutions, from hydration and health to indulgence and convenience

Example One for Market Segmentation of Drinks

In this example of market segmentation, the overall drink market has been considered. The overall drink market refers to any cold beverage, including: sodas, juice, energy drinks, milk-based drinks, water, sports drinks, and so on – but not alcohol products. While some of these product categories would be considered indirect competitors, they can be all clustered into the same overall market.

The purpose of this market segmentation example is to demonstrate that while consumers are all buying some form of beverage, their needs and situations are different across the market segments, which means that they are seeking different product benefits.

In this market segmentation example for drinks, eight different market segments have been identified. This example is using a mix of situational influences and primarily a benefit segmentation approach. There are eight market segments identified in this example, as follows:

Really thirsty
On the go
Need a boost
Variety seekers
Health focus
Sporty
Hold the sugar
Just feel like it

Really thirsty

This group of consumers is seeking a fairly straightforward functional benefit from their consumption of a beverage. They are in a situation where they simply need to quench their thirst. In this case, they would be attracted to fairly simple styles of beverages, such as water or juice.

This segment is less likely to be attracted to milk-based drinks and drinks containing caffeine. They would be attracted to packaging words such as “refreshing” and “hydrating”.

Key Characteristics:

Focus on functional benefits like hydration and refreshment.
Less likely to choose caffeine-containing or milk-based drinks.
Attracted to packaging and messaging emphasizing “refreshing” and “hydrating.”

Marketing Implications:

Highlight hydration benefits in product messaging.
Use packaging designs that convey freshness, such as clear bottles or natural imagery.
Offer convenient and widely available options like bottled water or ready-to-drink juices.

On the go

The on the go market segment is a busy group of consumers who tend to eat and drink while they are traveling. This is a growing segment and is quite common across a range of convenience foods markets.

Because of this approach to their lifestyle, these consumers often look to a beverage as a meal replacement. Because they are typically quite time-poor during the day, they do not always have time to consume a meal and a “filling” beverage is a good alternative. Therefore, for this particular market segment, convenience foods represent an indirect competitor to a beverage.

This market segment would be seeking a fairly substantial type of beverage, such as a milk-based drink, a thicker juice mixture, or a larger serving of a more traditional soft drink.

Key Characteristics:

Seek filling beverages that are easy to consume while traveling.
Prefer larger servings or thicker options like milk-based drinks or dense juices.
View convenience foods as indirect competitors.

Marketing Implications:

Develop portable, resealable packaging suited for travel.
Market products as meal replacements with nutritional benefits.
Position drinks alongside convenience foods in stores for cross-selling opportunities.

Need a boost

This particular market segment, in this example, consists of those consumers are feeling rundown or tired during the day, or consumers who need a kick start to their day. Traditionally, coffee would be the prime beverage products solution, but increasingly cold beverages are encroaching on this consumer need.

These consumers would be highly attracted to energy drinks, some sports drinks, vitamin water, and even some traditional soft drinks containing larger amounts of caffeine.

Key Characteristics:

Highly attracted to beverages with energy-boosting qualities, such as energy drinks, caffeinated soft drinks, or vitamin water.
Often overlap with consumers of traditional coffee but prefer cold alternatives.
Respond well to functional benefits like “energy” or “focus.”

Marketing Implications:

Use bold, dynamic branding to convey energy and vitality.
Highlight functional ingredients such as caffeine, vitamins, or taurine.
Position products as alternatives to traditional hot beverages.

Variety seekers

Variety seekers are consumers that have limited product loyalty and tend to consume a broader selection of beverages, primarily depending upon their taste and situation at the time.

Variety seekers are fairly common market segment in most food markets. They tend to be brand switchers by definition, but are often heavy users as well. The goal is to try and increase share-of-stomach by offering a broader product range with different flavors and varieties.

Key Characteristics:

Little brand loyalty, switching between options based on taste or novelty.
Heavy users who try new products frequently.
Influenced by limited-edition flavors and unique product varieties.

Marketing Implications:

Introduce new flavors and seasonal offerings regularly.
Use eye-catching packaging to stand out on shelves.
Leverage social media campaigns to create excitement around new products.

Health focus

The health focused market segment consists of consumers who tend to make all their food and beverage choices based upon being healthy and eating well.

In the cold beverage market that would be primarily attracted to water, vitamin water and juice. They tend to be quite brand loyal, relying upon brands that they know and trust and have a reputation for providing health benefits.

Compared to other market segments, they are more highly involved in the purchase decision, but can be attracted to a new brand on rational health benefits – often communicated through packaging or in-store displays. They are less responsive to sales promotions and special offers outside of their normal brand choices.

Key Characteristics:

Prefer water, vitamin water, or natural juices with clear health benefits.
Highly brand loyal, relying on trusted names with strong reputations.
Less responsive to promotions, focusing instead on product quality and health claims.

Marketing Implications:

Emphasize natural ingredients, low-calorie options, and functional benefits in advertising.
Include certifications or claims like “organic” or “no additives” on packaging.
Educate consumers through in-store displays or health-focused campaigns.

Sporty

In this example market segment, consumers are looking for products that are helpful when they are undertaking sporting events, such as running or playing some form of organized sport, or working out at the gym.

They differ from the “health focus” market segment example in that these consumers do not necessarily look to eat healthy for every meal or drink. Instead they seek functional benefits of beverages when they are involved in strenuous or endurance activities.

They are attracted to simpler product solutions such as water for regular training sessions or they are more likely to utilize sports drinks that offer the benefit of fast water replacement or some form of energy boost. The packaging of the drink is also a consideration, both in terms of the shape and size of the bottle (for example, easy to hold while running) and the lid dispenser (looking for a container that offers a no spill solution).

Although outside of their sports activities these consumers mimic the consumer behavior of the other market segment (such as the variety-seekers segment), when purchasing a suitable drink for their sports activities they are likely to be highly brand loyal to products offering clear functional benefits.

Key Characteristics:

Attracted to sports drinks and water with electrolytes or energy boosters.
Seek practical packaging for use during exercise, such as no-spill lids or easy-grip bottles.
Highly brand loyal when purchasing for sports activities.

Marketing Implications:

Highlight performance-enhancing benefits like hydration or electrolyte replacement.
Design ergonomic packaging for active use.
Partner with sports events or athletes to build credibility and visibility.

Hold the sugar

The next market segment in this example is highly attracted to diet drinks. These consumers may have particular needs such as weight loss goals or being diabetic, but in most cases they are looking to cut some calories from their daily diet.

This market segment differs from the “health focus” segment as they are not necessarily pursuing general health and well-being goals. As a result, they are quite attracted to no sugar flavor varieties of traditional soft drinks in particular and are less interested in bottled water.

This consumer segment tends to be above average purchasers in terms of quantity (that is, these consumers are heavy users) and is quite responsive to discounts and other sales promotions. However, this market segments is relatively brand loyal.

Key Characteristics:

Prefer sugar-free versions of traditional beverages, like diet sodas.
Heavy users who consume drinks regularly.
Respond to promotions and discounts but remain relatively brand loyal.

Marketing Implications:

Highlight “no sugar” or “low calorie” prominently on packaging.
Use pricing promotions to encourage repeat purchases.
Offer multiple flavor varieties of diet drinks to appeal to different tastes.

Just feel like it

This final market segment are consumers who, primarily due to situational factors and/or habit, are attracted to drink products for enjoyment and refreshment, rather than for any functional benefits. In their case, these consumers are not necessarily seeking health or thirst benefits.

Instead they are more likely to enjoy drinking their favorite beverage. These consumers are more attracted to traditional soft drinks and can be quite emotionally loyal to the brand – for an example, you should read about the launch of the New Coke product.

Key Characteristics:

Choose beverages based on habit or situational cravings.
Strong emotional loyalty to favorite brands, such as traditional sodas.
Attracted to indulgent flavors and nostalgic brands.

Marketing Implications:

Use emotional branding that connects with personal enjoyment and indulgence.
Highlight iconic or nostalgic elements of well-known products.
Leverage creative packaging and advertising to evoke positive emotions.

Conclusion

The non-alcoholic drinks market demonstrates how diverse consumer needs and behaviors drive segmentation. From health-conscious buyers and sporty consumers to variety seekers and on-the-go drinkers, understanding these segments allows brands to align products and marketing efforts with customer expectations. Tailored strategies ensure greater resonance and satisfaction, driving both sales and loyalty.

Market Segmentation Example for Drinks Using Demographic Segmentation

Demographic segmentation focuses on dividing the market based on measurable traits like age, gender, income, education, and family size. This approach provides insights into how different consumer groups prioritize beverage choices, enabling targeted marketing strategies for each segment.

Here are seven demographic segments identified for the non-alcoholic drinks market:

1. Kids (Aged 5–12)

Overview:
Children are a key segment for beverages, especially sugary drinks and milk-based products marketed as fun and delicious.

Key Characteristics:

Favor sweet and colorful beverages, like flavored milk or juice boxes.
Influenced heavily by packaging with cartoon characters or bright designs.
Often rely on parental decisions but express preferences for specific brands.

Marketing Implications:

Use kid-friendly packaging with vibrant colors and fun themes.
Promote products as “tasty and fun” while appealing to parents with health claims like added vitamins.
Offer smaller, easy-to-handle portion sizes.

2. Teenagers (Aged 13–19)

Overview:
Teens are trend-driven and experimental, often opting for drinks that reflect their personalities and social circles.

Key Characteristics:

Interested in energy drinks, sodas, and flavored water.
Influenced by social media, influencers, and peer recommendations.
Tend to prefer bold flavors and unique packaging.

Marketing Implications:

Leverage influencer partnerships and social media campaigns.
Highlight bold, trendy flavors and adventurous product lines.
Use dynamic, edgy advertising targeting youth culture.

3. Young Adults (Aged 20–35)

Overview:
Young adults seek beverages that align with their busy lifestyles and social image, ranging from energy drinks to premium water.

Key Characteristics:

Interested in functional drinks like protein shakes, energy drinks, and vitamin water.
Value convenience and portability for on-the-go consumption.
Willing to pay a premium for beverages with unique or premium branding.

Marketing Implications:

Focus on innovative, portable packaging and functional benefits.
Use digital marketing channels like apps, social media, and subscription services.
Highlight eco-friendly practices or sustainable packaging to appeal to values-driven consumers.

4. Families (Parents and Children)

Overview:
Families prioritize practicality and health in their beverage choices, often seeking products that cater to both adults and kids.

Key Characteristics:

Purchase multipacks of juice, milk, or water for home consumption.
Prefer products with nutritional benefits for children.
Tend to value affordability and trust in established brands.

Marketing Implications:

Promote family-sized packaging and multipacks.
Highlight health benefits, such as “calcium for kids” or “natural hydration for the whole family.”
Use family-focused campaigns emphasizing shared moments.

5. Health-Conscious Adults (Aged 30–50)

Overview:
This segment seeks beverages that align with their fitness goals and overall well-being.

Key Characteristics:

Prefer sugar-free, low-calorie, or nutrient-enhanced drinks.
Interested in clean-label products with natural ingredients.
Loyal to brands with a strong reputation for health benefits.

Marketing Implications:

Emphasize health claims like “no added sugar,” “organic,” or “packed with electrolytes.”
Use transparent packaging to highlight product purity.
Offer in-store samples to encourage trial of new products.

6. Seniors (Aged 60+)

Overview:
Seniors prioritize hydration and health, often selecting beverages that support active aging or specific dietary needs.

Key Characteristics:

Prefer products with clear health benefits, such as fortified water or nutrient-rich juices.
Often avoid caffeinated or heavily sweetened drinks.
Value clear labeling and easy-to-read packaging.

Marketing Implications:

Highlight age-specific benefits like hydration, bone health, or digestion support.
Use larger font sizes and simple designs for packaging.
Advertise through traditional media, such as TV, newspapers, and community events.

7. High-Income Consumers

Overview:
This segment values premium and artisanal beverages, often paying extra for quality, exclusivity, or sustainability.

Key Characteristics:

Attracted to gourmet or niche products, such as cold-pressed juices or artisanal sparkling water.
Prefer sustainable or eco-friendly packaging.
Value unique flavors and high-end branding.

Marketing Implications:

Use luxury branding with minimalist and premium designs.
Highlight exclusivity through limited-edition flavors or small-batch production.
Advertise through upscale channels like luxury magazines or exclusive events.

Conclusion

Demographic segmentation allows beverage companies to address specific needs and preferences across different age groups, income levels, and family dynamics. From kids craving fun and flavor to health-conscious adults and high-income consumers seeking premium options, this approach ensures that products and campaigns resonate with their intended audiences, driving engagement and sales.

Market Segmentation Example for Drinks Using Occasion-Based Segmentation

Occasion-based segmentation categorizes consumers based on the specific situations or contexts in which they consume beverages. This approach focuses on the “when” and “why” behind consumption, uncovering opportunities to tailor products and marketing efforts to match those moments.

Here are seven occasion-based segments identified for the non-alcoholic drinks market:

1. Everyday Hydration

Overview:
This segment covers consumers who drink beverages regularly throughout the day to stay hydrated.

Key Characteristics:

Prefer water, flavored water, or light, refreshing beverages.
Focus on simplicity and health benefits.
Seek convenient, portable options for work, home, or travel.

Marketing Implications:

Promote products as essential hydration for daily life.
Use simple and clear packaging with health-focused messaging.
Offer multi-pack or large-format packaging for regular use.

2. Morning Routine

Overview:
Consumers in this segment include those who rely on beverages to start their day, often as part of their morning ritual.

Key Characteristics:

Typically choose coffee, tea, or energy drinks for a caffeine boost.
Value convenience and portability for mornings on the go.
Interested in beverages that pair well with breakfast.

Marketing Implications:

Emphasize energy-boosting or wake-up qualities in advertising.
Offer ready-to-drink coffee or tea with grab-and-go packaging.
Position products in convenience stores or breakfast aisles.

3. Workout and Recovery

Overview:
This segment targets individuals who consume beverages before, during, or after physical activity.

Key Characteristics:

Prefer sports drinks, protein shakes, or electrolyte-enhanced water.
Value functional benefits like hydration, muscle recovery, or energy replenishment.
Often loyal to specific brands associated with fitness.

Marketing Implications:

Highlight functional benefits like hydration, electrolytes, and protein.
Partner with gyms, fitness influencers, or sports events.
Use ergonomic packaging for ease of use during workouts.

4. Social Gatherings

Overview:
This segment includes consumers who choose beverages to enhance social occasions, such as picnics, parties, or get-togethers.

Key Characteristics:

Prefer shareable, fun, or indulgent drinks like sodas, juices, or sparkling beverages.
Often attracted to attractive packaging or unique flavors.
Look for multipacks or larger formats suited for groups.

Marketing Implications:

Promote party-friendly packaging and limited-edition flavors.
Use social media campaigns that emphasize fun and togetherness.
Partner with events or festivals to showcase products.

5. Midday Boost

Overview:
Consumers in this segment seek beverages to combat mid-afternoon energy slumps, often as a substitute for a snack.

Key Characteristics:

Choose energy drinks, iced coffee, or smoothies for a pick-me-up.
Often look for beverages that combine energy and nutrition.
Value quick and convenient options that fit into a busy day.

Marketing Implications:

Highlight energy and focus-boosting properties in marketing.
Position products as a healthy alternative to sugary snacks.
Use eye-catching displays in vending machines or office break areas.

6. Indulgent Moments

Overview:
This segment includes consumers who treat themselves with indulgent or premium beverages during leisure time.

Key Characteristics:

Prefer rich, flavorful options like milkshakes, premium juices, or specialty sodas.
Look for luxurious, high-quality packaging and branding.
Often choose beverages that feel like a “treat” or reward.

Marketing Implications:

Use messaging that highlights indulgence, quality, and enjoyment.
Offer limited-edition or premium flavors to create excitement.
Focus on upscale branding and storytelling in advertisements.

7. Travel and Adventure

Overview:
This segment includes consumers who need beverages while traveling, whether for work or leisure.

Key Characteristics:

Favor portable, resealable options like bottled water, energy drinks, or juice.
Seek beverages that are easy to carry and consume on the move.
Value products that provide hydration and energy during long trips.

Marketing Implications:

Develop packaging optimized for travel, such as lightweight or resealable bottles.
Partner with travel hubs like airports or gas stations for placement.
Use messaging that emphasizes convenience and practicality.

Conclusion

Occasion-based segmentation highlights how specific contexts drive beverage choices, from everyday hydration to indulgent treats or social gatherings. By tailoring products and campaigns to match these occasions, brands can align more closely with consumer needs, creating stronger connections and driving sales. This approach ensures that beverages are not just consumed but also enhance the moments that matter most to consumers.