MarketLooks: Energy Drinks in the U.S.

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Title: Energy Drinks in the U.S.
Published: December 2007

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The following is the abstract from the full report:
The soda industry better watch its back, there’s a new beverage in town and it’s crossing the line. Energy drinks, once the lesser segment within the sports nutritional beverage industry, has had break away success since 2002 growing an incredible 45% CAGR to reach $5.4 billion in 2006.

A closer look at IRI-tracked sales shows how flat bubbly soda is. In the past five years, energy drinks sales through mass-market channels grew at a 56% CAGR, while carbonated sodas declined 1%. The rub for the soda industry is that energy drinks are harkening back to the good old days and positioning products as elixirs of good health. In essence, energy drinks are reinventing the original soda platform from the late 19th century with a return to the early functional benefits of the soft beverage category.

Other beverage and even food and personal care categories may feel the power of energy drinks, as it creatively cross-fertilizes. Some mergers seem obvious, such as with tea and coffee products, but recent innovations in energy ice cream and energy drink beauty products speak to a very different future.

Energy Drinks in the U.S. examines the state of the U.S. market, from everyday major players to specialty premium niche players. The report analyses manufacturer and retailer strategies used to maximize growth and profitability. Coverage includes analysis of consumer usage, brand preference, retailing, new products and factors and trends that will fuel future growth.

Report Methodology 
The information in Energy Drinks in the U.S. is obtained from both primary and secondary research. Primary research data is provided by Simmons Market Research Bureau (consumer buying and usage data), Information Resources Inc. (market share data), and ProductScan (new product introduction data). Secondary research data has been obtained from trade association publications, business and medical journals, company literature and websites, databases, and investment reports.

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