Jumping on the Energy Drink Bandwagon
If you're interested at all about the energy drink market, you know that it is growing like a weed. In today's fast-paced society, humans are realizing that they don't have time for sleep along with everything else. Thus, companies are striving to put out the best energy drink designed for the potential insomniac that they have in mind. They are concerned with packing whatever ingredients they can to improve the stamina and physical performance of human beings. They do this with no hesitance, not caring about any side effects of over dosage. They energy drink market is a monster that, currently, cannot be fed.
If you have tried many of the available energy drinks, you know that each one has its own distinct flavor and "buzz factor." Each company puts its own twist on it’s so-called, "energy drink", but they usually revolve around the same ingredient: caffeine. Other major ingredients come into play, but the central nervous system drug in every soft drink and caffeinated beverage is also in this energy drink.
New research from MINTEL* finds sales of energy and stimulant drinks set to pass the 5 billion barrier this year, taking sales of these stamina boosting drinks to an incredible 1.00 in every 5.00 spent on soft drinks.
Today's 24/7 lifestyle is driving the sales of energy drinks, with volume having increased by an impressive 75% and value by some 71% since 2000. Energy and stimulant drinks have now clearly moved from niche to mass-market, having seen sales double every year since their introduction.
"The UK has the longest working hours in the EU, and in order to get the most out of every day, consumers are increasingly looking at products with an extra kick, which is one reason why so many people are reaching for these kinds of drinks. In the UK, this market is also very much lifestyle driven, especially by young, image-conscious adults, who see these drinks as a kind of fashion accessory. What is more, values have been boosted by the fact that energy drinks command a substantial premium over other soft drinks, as consumers are prepared to pay a relatively high price for the energy boost they provide. The fact that they are also widely available means that they fit in with the 24 hour lifestyle," comments Ellen Shiels, Senior Consumer Analyst.
Who is drinking them?
Sleepless nights and hectic days chasing the kids around the house have made energy and stimulant drinks an attractive proposition for many of Britain's bleery-eyed parents. Indeed, almost half (44%) of British parents believe that these drinks are a good pick me up, compared to just three in ten (31%) of those adults without children at home.
Although the majority of people are prepared to pay a premium for these drinks, price still presents the greatest barrier to British consumers, with a quarter (25%) of the population believing that they are too expensive.
Unsurprisingly, consumption of all the main energy drinks declines with age - in the case of Red Bull, the drop off is most evident from the age of 35, whereas Lucozade Energy has a slightly older age bias as a result of its long established heritage.
By "Mintel"
Mintel is a worldwide leader of competitive media, product and consumer intelligence. For more than 30 years, Mintel has provided key insight into leading global trends. With offices in Chicago, London, Belfast and Sydney, Mintel's innovative product line provides unique data that has a direct impact on client success.
“Red Bull”….THE LEADER RIGHT NOW
A Bull's Market - the marketing of Red Bull energy drink (1981)
Red Bull, Austria's biggest export since Arnold Schwarzenegger, has methodically created and dominated the energy drink category much in the way players of the board game Risk would defeat their opponents. Dietrich Mateschitz, the owner of Red Bull International, created the highly caffeinated beverage in 1987. Five years later, the drink spread into neighboring countries like Hungary and Slovenia, followed by Germany and Switzerland. In 1997, Red Bull prepared to storm the U.S. market. Today, the slinky 8-3-OZ can has completed its invasion into nearly every cold box in the United States and around the world. In less than three years after 1981, Red Bull single handedly established and then lifted the booming energy drink category from a base of $12 million in (wholesale) dollar sales to $42 million in 1998 and $75 million in 1999, per Beverage Marketing Corp. Others soon followed, building energy drinks to a $130 million business. Now Coke (KMX) and Anheuser-Busch (180) are jumping in. Last year, Red Bull's market share stood at 65%, while the company reportedly pulled in a cool $1 billion in worldwide sales. Just how Red Bull managed to accomplish so much, so quickly has become the stuff of mythology. Some have written off the product by calling it a "flash in the pan" or derisively note that its handlers "got lucky". A closer investigation of the company's strategy however, reveals that luck had little to do with Red Bull's success.
Facts & stats obtained from: Zenith International Reports, Food & Drink Weekly, Market Research, Fact Expert, Just Drinks, Beverage Daily, Beverage Marketing, News Wire Today.
