Not a member yet? Register now and get started.

lock and key

Sign in to your account.

Account Login

Forgot your password?

An Energetic Mix

26 Apr Posted by in Energy Drinks | Comments

Like many consumable categories, there is good news and bad surrounding energy drinks. On the good side, Mintel research found that energy drink sales reached an estimated $4.9 billion in 2010 in food, drug, mass and convenience store channels. During 2005-2010, the market grew 136 percent at current prices, equating to a 111 percent increase when adjusted for inflation. Mintel’s forecast is for the category to still grow in double-digits for the near future — 62 percent in current prices and 49 percent in inflation-adjusted prices during 2010-2015. The disappointing news is the market could be so much bigger. Currently, 74 percent of adults aged 18 and older do not consume energy drinks, and 69 percent of these non-users have no interest in changing that. Other mixed findings from Mintel’s research include:

* Compared to food, drug, mass channels, c-stores saw the highest dollar gains in energy drinks, grabbing $200 million more in sales during 2008-10;

* The 2007-10 recession resulted in a significant slowdown of new energy drinks on the market;

* Vitamin mineral fortification is the most popular claim; most energy drinks are fortified with B vitamins;

* Consumers’ greatest concerns are that the products contain too much sugar, calories, caffeine or carbohydrates, but this is motivating marketers to develop products highlighting “free from” benefits on the label;

* Energy drink users are more likely to be young (aged 18-24), male, black or Hispanic. Usage is also skewed to adults with a high school education or less and those living in households with children;

* Volume consumption remained unchanged during 2007-09 at 5.2 glasses per month;

* While the functional appeal of energy shots is greater than energy drinks, consumers who are looking for refreshment or taste are more likely to pick energy drinks over shots; and,

* Nearly half of those who do not drink energy drinks believe they are too expensive; this suggests that private label energy drinks have a place in the market.

Source: Mintel International Group Limited, “Energy Drinks and Shots—US—July 2010”