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Published by: Mintel International Group Ltd.
Published: Jul. 1, 2008 - 104 Pages
Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Executive Summary
- Market at a glance—poised for growth
- Market cannot sustain current growth momentum—“soda syndrome” may follow
- Demographic influences
- Teens and young adults aged 18-24 are the biggest energy drink consumers
- Hispanics and blacks generate growth in the market
- Women are likely to be put off by the “girl” moniker
- Red Bull remains the market leader: Coke and Pepsi can’t catch up
- Convenience stores drive growth as “sampling ground” while supermarkets thrive on value proposition
- Value proposition through “big” format is going to drive growth
- The need for an energy boost remains the biggest reason to drink energy drinks
- Price and safety concerns are the major reasons for not drinking energy drinks
- Market Size and Forecast
- Key points
- Robust current growth but weakening momentum in the next five years
- Figure 1: Total U.S. sales and forecast of energy drinks at current prices, 2003-13
- Figure 2: Total U.S. sales and forecast of energy drinks at inflation-adjusted prices, 2003-13
- Wal-Mart sales
- Competitive Context
- Key points
- High prices discourage popular consumer acceptance; price decrease will likely encourage wider acceptance
- Figure 3: FDMx prices for select non-alcoholic beverages, 2007
- Prices have declined, but not enough
- Competition from other beverages
- Coffee: efforts to target young and cool
- Natural smoothies with an energy kick compete with energy drinks
- Increasing numbers of hybrids drive growth
- Acquisitions and alliances create expansion in distribution
- Merger and acquisition activity
- Alliances
- Lack of access to an established distribution system inhibits growth through innovation
- Segment Performance
- Key point
- Non-aseptic energy drinks sales are almost absolute; other segments are to remain miniscule
- Figure 4: FDMx sales of energy drinks at current prices, by segment, 2003-08
- Figure 5: FDMx sales of energy drinks, by segment, 2006 and 2008
- Segment Performance—Non-Aseptic Energy Drinks
- Key points
- Price discount, compared to convenience channel, is a growth driver
- Figure 6: Price comparison of single-serve and multipacks for top two brands, 2008
- Growing base of users will continue to drive growth
- Non-aseptic energy drinks’ marketing sets it apart from the other two segments
- Figure 7: FDMx sales of non-aseptic energy drinks, 2003-08
- Segment Performance—Energy Drink Mixes
- Key points
- Energy drink mixes could grow amid weakening economy
- Figure 8: FDMx sales of energy drink mixes, 2003-08
- Segment Performance—Aseptic Energy Drinks
- Key point
- Aseptic energy drinks lack the “cool” image of non-aseptic counterparts
- Figure 9: FDMx sales of aseptic energy drinks, 2003-08
- Retail Channels
- Key points
- Convenience store sales grow on the strength of new product launches
- Figure 10: Choice of retail channels to purchase energy drinks, by age, May 2008
- Figure 11: New energy drinks product launch at convenience stores and supermarkets, 2005-07
- Value-pricing proposition at food and other channels drives growth
- Figure 12: U.S. sales of energy drinks, by retail channel*, 2005 and 2007
- Retail Channels—Convenience Stores
- Key points
- Convenience stores and energy drinks—perfect marriage
- Convenience store is “sampling ground” for the key consumer
- Big competition in a little bottle
- Convenience store develops own energy drink
- Figure 13: U.S. sales of energy drinks at convenience stores, 2003-08
- Retail Channels—Supermarkets
- Key points
- Supermarkets’ prime shoppers are not key energy-drink users; limited shelf space devoted to energy drinks
- Figure 14: U.S. sales of energy drinks at supermarkets, 2003-08
- Market Drivers
- Demographic influences
- Teens drive growth through increased numbers of users; dismal future growth through population growth in teens
- Figure 15: Personal incidence of drinking energy drinks among teens, young adults, and adults 2003-07
- Figure 16: U.S. population of teens aged 12-17, 2003-13
- Young adults are the key demographic, but energy-drink use among 35-44s on the rise
- Figure 17: U.S. population of adults aged 18-44, 2003-13
- Women are not likely to catch up with men’s energy-drink consumption
- Figure 18: U.S. population of women aged 18+, 2003-13
- Hispanics and blacks—profit driving demographics in the market
- Figure 19: Population, by race and Hispanic origin, 2003-13
- Increased scrutiny by authorities jeopardizes future growth from teens
- Proposed ban by legislators
- Future growth may halt if schools decide to ban energy drinks
- Bottom line: energy drinks are risky for teens and young adults
- Figure 20: Attitude toward risk taking among energy-drink users and non-users February 2007-March 2008
- Energy drinks as mixer with alcoholic beverages—mixed implications
- Figure 21: Reasons for drinking energy drinks, by race/ethnicity, May 2008
- Figure 22: Beer and spirits consumption in the past 12 months among all adults and energy-drink users, 2006 and 2008
- Leading Companies
- Key points
- Coca-Cola and PepsiCo are not the top energy-drink sellers
- Figure 23: FDMx sales of leading energy-drink companies, 2007 and 2008
- Brand Share—Energy Drinks
- Key points
- Leading brands will benefit by launching bigger packaging
- Hybrid line extensions—growth by expanding energy-drink usage
- Figure 24: FDMx brand sales of energy drinks in the U.S., 2007 and 2008
- Brand Qualities
- Masculine “I dare you” image: beyond forbidden names, racy marketing
- Bigger packaging—party longer
- Innovation and Innovators
- Innovation remains strong; but many “me too” products in the market
- Figure 25: Trends in numbers of new product introductions in the energy-drink market, 2003-08
- New product claims mimic consumer trend towards health and wellness
- Figure 26: Trends in numbers of new product introductions in the energy-drink market, 2007-08
- Functional approach—a tool to find a profitable consumer niche amid the crowd
- Mighty Aphrodite—brands take the sexual appeal to a different level and consumer
- Getting specific with cerebrum
- Organic and natural
- Energy shots: “quick rush of energy” and “no crash” claims prevail
- Energy hybrids—energy becomes part of most beverage segment
- Energy drinks and tea hybrids—growth potential in future
- Advertising and Promotion
- Grass roots marketing continues to impress the key consumers
- Red Bull
- Figure 27: Red Bull television ad, 2007
- Figure 28: Red Bull television ad, 2007
- PepsiCo
- Figure 29: AMP television ad, 2007
- Usage
- Growth in the numbers of energy-drink users
- Figure 30: Personal consumption of energy drinks, 2003-08
- Energy drinks continues to be a male-dominated market
- Figure 31: Incidence of drinking energy drinks, by gender, 2003-07
- Age defines energy-drink users
- Figure 32: Incidence of drinking energy drinks among adults aged 18-24 and 25-34, 2003-07
- Blacks and Hispanics are key consumers
- Figure 33: Incidence of drinking energy drinks among blacks and Hispanics, 2003-07
- Frequency of Use
- Increase in the frequency of drinking energy drinks contribute to the market growth
- Figure 34: Mean frequency of drinking energy drinks, by key demographics, 2005-08
- Brands
- Red Bull continues its lead among consumers
- Figure 35: Consumption of energy drinks, by brands, February 2007-March 2008
- Teens and Energy Drinks
- Teens are more than twice as likely to drink energy drinks as adults
- Figure 36: Energy-drink penetration among teens and adults*, 2003-07
- Male teens aged 12-14 are also key consumers; a worrisome finding
- Figure 37: Energy-drink penetration among teens, by gender/age, January-November 2007
- Ethnic teens are growth-driving demographics
- Figure 38: Energy-drink penetration among teens, by race/ethnicity, January-November 2007
- Teens and energy-drink brands
- Teens drink a greater variety of brands than adults
- Figure 39: Teen consumption of energy drinks, by brands, January-November 2007
- When, Why and How Energy Drinks Are Used
- Why consumers drink energy drinks
- The need for an energy boost remains the biggest reason to drink energy drinks
- Figure 40: Reasons for drinking energy drinks, by age, May 2008
- Energy drinks have growth potential through launching products in Hispanic-preferred flavors
- Figure 41: Reasons for drinking energy drinks, by race/ethnicity, May 2008
- Energy-drink ingredients that consumers value most
- Figure 42: Preference for energy-drink ingredients, by age, May 2008
- When consumers drink energy drinks
- Figure 43: Occasions to drink energy drinks, by age, May 2008
- How consumers drink energy drinks
- Figure 44: Energy drinks usage with food, by age, May 2008
- Understanding Non-Users and Hybrid Preferences
- Understanding the individual who does not consume energy drinks
- Figure 45: Reasons for not drinking energy drinks, by age, May 2008
- New product preference in energy drinks
- Figure 46: New product preference in energy drinks, by age, May 2008
- Attitudes and Behavior
- Incidence of drinking more/less compared to a year ago
- Figure 47: Incidence of drinking more or less energy drinks compared to a year ago, by age, May 2008
- Attitude and behavior
- Figure 48: Attitude and behavior towards energy drinks, by age, May 2008
- Appendix: Caffeine - Content Comparison
- Caffeine content in various energy drinks brands
- Figure 63: Caffeine content in various energy drinks brands
- Caffeine content in competitive beverages
- Figure 64: Caffeine content in competitive beverages
- Appendix: Other Useful Consumer Tables
- Usage
- Figure 65: Incidence of drinking energy drinks, by key demographics, February 2007-March 2008
- Frequency of use
- Figure 66: Frequency of energy-drink consumption, 2005 and 2007
- Where consumers purchase energy drinks
- Figure 67: Choice of retail channels to purchase energy drinks, by race/ethnicity, May 2008
- Figure 68: Choice of retail channels to purchase energy drinks, by region, May 2008
- Why consumers drink energy drinks
- Purpose of drinking energy drinks
- Figure 69: Reasons for drinking energy drinks, by gender, May 2008
- Figure 70: Reasons for drinking energy drinks, by income, May 2008
- Ingredients that consumers value
- Figure 71: Preference for energy drink ingredients, by age, May 2008
- When consumers drink energy drinks
- Figure 72: Occasions to drink energy drinks, by gender, May 2008
- Figure 73: Occasions to drink energy drinks, by presence of children, May 2008
- Figure 74: Occasions to drink energy drinks, by region, May 2008
- Figure 75: Occasions to drink energy drinks, by presence of children, May 2008
- Understanding the consumer who does not drink energy drinks
- Why consumers do not drink energy drinks
- Figure 76: Reasons for not drinking energy drinks, by gender, May 2008
- Figure 77: Reasons for not drinking energy drinks, by race/ethnicity, May 2008
- Figure 78: Reasons for not drinking energy drinks, by income, May 2008
- Figure 79: Reasons for not drinking energy drinks, by region, May 2008
- New product preference in energy drinks
- Figure 80: New product preference in energy drinks, by gender, May 2008
- Figure 81: New product preference in energy drinks, by race/ethnicity, May 2008
- Figure 82: New product preference in energy drinks, by income, May 2008
- Figure 83: New product preference in energy drinks, by presence of children, May 2008
- Incidence of drinking more or less energy drinks compared to a year ago
- Figure 84: Incidence of drinking more or less energy drinks compared to a year ago, by age, May 2008
- Figure 85: Incidence of drinking more or less energy drinks compared to a year ago, by income, May 2008
- Figure 86: Incidence of drinking more or less energy drinks compared to a year ago, by region, May 2008
- How consumers drink energy drinks
- Figure 87: Energy drinks usage with food, by age, May 2008
- Figure 88: Energy drinks usage with food, by region, May 2008
- Attitude and behavior
- Figure 89: Attitude and behavior towards energy drinks, by gender, May 2008
- Figure 90: Attitude and behavior towards energy drinks, by race/ethnicity, May 2008
- Appendix: Trade Associations
AbstractThis report examines the high-growth energy drinks market with recommendations for courses of action that can benefit stakeholders-manufacturers, retailers, and distributors. Specifically, highlights of analysis in the report include:
- Why the market has achieved continued high growth, and why it will not be able to maintain the momentum in coming years
- Understanding the role of teens and young adults
- Why the market may have a hard time retaining teen consumers
- What role increasing scrutiny from legislatures, medical community, and schools will play in future
- How the market may face competition from alternative energy boosting beverages and/or supplements
- Will energy hybrids contribute growth or create confusion
- Barriers to consumer adoption of energy drinks
- Why mainstream advertising has not worked in the energy drinks market
- A glimpse into the profile of potentially heavy consumers of energy drinks through the analysis of usage and attitudinal information
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