About this report
Originally marketed to athletes, and then almost exclusively to young people, the energy supplements category is moving rapidly into the mainstream. Sales of energy bars, energy drinks, and liquid/powder protein drinks advanced from $2 billion in 1998 to $5 billion in 2003. Mintel projects sales will reach $8 billion in 2008. Younger adults and athletes still form a core consumer group for the category, but older consumers are quickly adopting the newer protein drinks and energy bars. Much of this new acceptance has come on the heels of new product formulation breakthroughs precisely at a time when older adults were looking for healthier foods and beverages.
In this report, Mintel analyzes three segments of the energy supplement market: energy bars, energy drinks and liquid/powder protein drinks. These segments make for an interesting case study about selling products on an energy platform, as in most cases, they are each marketed separately. Until 2001 there was virtually no overlap between brands or manufacturers in any of the three segments. The markets for protein drinks and energy bars have become more closely related, as both move closer to the mainstream.
Despite their differences, energy bars, energy drinks, and protein drinks each convey such a clear message of energy, convenience, and lifestyle that they create a family of related products. The reasons for consuming each may be very different, but users of any one of the three segments tend to participate in at least two of the three segments. Understanding the relationship between consumer attitudes and use of energy supplements will be key to manufacturers participating in any of the segments, and especially to those bridging the gap between them.
Mintel s original consumer research helps you unravel the reasoning behind consumer purchasing decisions. Mintel analyzes results by age, gender, income, ethnicity and other demographic characteristics. For example, in energy bars, a tendency towards consumption by Hispanics emerged in 2004 that did not show in 2001 (31% penetration, up from 20%). Keeping an eye to these emerging trends will help manufacturers effectively target and win over new customers.
For the purposes of this report, energy supplements are defined as foods or beverages that specifically claim to provide an energy or stimulation boost. Marketing for these products stresses energy; many generally include active ingredients such as glucose, caffeine and taurine, as well as other health-oriented ingredients such as ginseng and various vitamins and minerals. Other products contained in the definition feature proteins and/or carbohydrates and also have a marketing claim for added energy benefits.
This report is defined as including three distinct segments of the energy supplement market:
- cereal bars promoted explicitly on an energy platform such as PowerBar, BALANCE Bar, and CLIF Bar
- energy/stimulant drinks such as Red Bull, SoBe, and KMX
- powdered/protein drinks such as GNC ProPerformance, MET-Rx, Richardson, EAS Myoplex and EAS AdvantEdge
Excluded from this report are:
- cereal or granola bars that do not make a specific claim to provide energy (analyzed in Cereal Bars—U.S. consumer intelligence, September 2002), sports drinks such as Gatorade that perform a largely rehydrating function (analyzed in RTD Non-Carbonated Beverages—U.S. consumer intelligence, January 2004)
- soft drinks
- diet aids (e.g. Slim-Fast) and meal replacement products (analyzed in Weight Control—U.S. consumer intelligence, June 2003), unless they are also marketed with an energy benefit statement as in some Atkins Diet products
- vitamins and minerals
Contents
Introduction and Abbreviations
- Introduction
- Other relevant reports
- Definition
- Abbreviations & terms
- Abbreviations
- Terms
Executive Summary
- A fast-growing market starting to mature
- Age, health awareness, and untapped consumers helping energy supplements into the mainstream
- Brands—market leaders emerging, but competition is increasing at the top
- Marketing strategies starting to mainstream
- Distribution widens
- The Consumer—eager for energy
- Energy supplements—transitioning from youth to mainstream
- Purchases made based on promise to deliver energy
- Acceptance of food and beverages as way to take vitamins and minerals
- Food and beverages preferred when looking for an energy boost
- Future
- Market Drivers
- Age trends
- Figure 1: U.S. population projections, by age group, 1998-2008
- Health issues increasingly on cultural radar
- More Americans exercising; health awareness increasing
- Figure 2: Percentage of adults exercising to lose or maintain weight, 1996, 1998 and 2000
- Figure 3: Incidence of U.S. adults trying to lose weight, maintain weight or eat fewer calories, 1996, 1998 and 2000
- Low carb diets surge in popularity
- Figure 4: Incidence of low carb dieting, February 2004
- Untapped consumer base influencing product development
- Energy supplements seen as affordable lifestyle choice
- Figure 5: Per capita DPI, in current dollars, 1998-2003
- Products maintain high price points despite increasingly crowded market
- Modern lifestyles encourage consumption
- Multi-tasking customers value convenience
- Americans are under-slept
- Americans are overworked
- Age trends update
- Updated DPI
- Update Figure 1: Per capita DPI, in current 2000 dollars, 1999-2004
Market Size & Trends
- Figure 6: Total U.S. retail sales of energy supplements, at current and constant prices, 1998-2003
- Figure 7: Graph: Total U.S. retail sales of energy supplements, at current and constant prices*, 1998-2003
- Update market size and trends
- Update Figure 2: Total U.S. retail sales of energy supplements, at current and constant prices, 1999-2004
- Update Figure 3: Graph: Total U.S. retail sales of energy supplements, at current and constant prices, 1999-2004
Market Segmentation
- Overview
- Figure 8: Sales of energy supplements, segmented by product, 2001 and 2003
- Figure 9: Graph: Sales of energy supplements, segmented by product, 1998-2003
- Energy bars
- Figure 10: Sales of energy bars, at current and constant prices, 1998-2003 (fixed 8.25)
- Protein liquid/powder drinks
- Figure 11: Sales of protein liquid/powder drinks, at current and constant prices, 1998-2003
- Energy/stimulant drinks
- Figure 12: Sales of energy/stimulant drinks, at current and constant prices, 1998-2003
- Update overview
- Update Figure 4: Sales of energy supplements, segmented by product, 2003 and 2004
- Update Figure 5: Graph: Sales of energy supplements, segmented by product, 1999-2004
- Update Figure 5: Graph: Sales of energy supplements, segmented by product, 1999-2004
- Update energy bars
- Update Figure 6: Sales of energy bars, at current and constant prices, 1999-2004
- Update liquid powder/protein drinks
- Update Figure 7: Sales of protein liquid/powder drinks, at current and constant prices, 1999-2004
- Update energy/stimulant drinks
- Update Figure 8: Sales of energy/stimulant drinks, at current and constant prices, 1999-2004
Supply Structure
- American vs. International production
- Companies and brands
- Figure 13: Manufacturer retail sales of energy supplements in the U.S., 2001 and 2003
- Energy supplements earn high price points, as in 2002, but price competition is increasing
- Company profiles
- Energy drinks
- Red Bull GmbH
- PepsiCo/South Beach Beverage Company (SoBe)
- Hansen s Natural Corporation
- Coca-Cola/KMX
- Rockstar
- Energy Bars
- Nestlé/PowerBar
- GNC (General Nutrition Companies)
- Kraft/BALANCE Bar
- Clif Bar
- Experimental Applied Science (EAS)
- Atkins Nutritionals
- MET-Rx Nutrition
- Update companies and brands
- Update Figure 9: Manufacturer retail sales of energy supplements in the U.S., 2003 and 2004
Advertising & Promotion
- Introduction
- Energy drinks
- Red Bull GmbH
- PepsiCo/SoBe
- Hansen s
- Coca-Cola/KMX
- Rockstar
- Energy Bars
- Nestlé/PowerBar
- Clif Bar
- BALANCE Bar
- MET-Rx
- Experimental Applied Science (EAS)
- Atkins Nutritionals
- GNC (General Nutrition Companies)
Retail Distribution
- Introduction
- Figure 14: U.S. retail sales of energy supplements, by channel, 2001 and 2003
- Figure 15: Graph: U.S. retail sales of energy supplements, by channel, 2003
- Figure 16: U.S. specialty store sales of energy supplements, at current and constant prices, 1998-2003
- Convenience stores
- Figure 17: U.S. convenience store sales of energy supplements, at current and constant prices, 1998-2003
- FDM stores
- Supermarkets
- Figure 18: U.S. supermarket sales of energy supplements, at current and constant prices, 1998-2003
- Drug Stores
- Figure 19: U.S. drug store sales of energy supplements, at current and constant prices, 1998-2003
- Mass Merchandisers
- Figure 20: U.S. mass merchandiser sales of energy supplements, at current and constant prices, 1998-2003
- Direct and other channels
- Figure 21: U.S. direct/other sales of energy supplements, at current and constant prices, 1998-2003
- Update retail distribution
- Update Figure 10: U.S. retail sales of energy supplements, by channel, 2003 and 2004
- Update specialty stores
- Update Figure 11: U.S. specialty store sales of energy supplements, at current and constant prices, 1999-2004
- Update convenience stores
- Update Figure 12: U.S. convenience store sales of energy supplements, at current and constant prices, 1999-2004
- Update FDM stores
- Supermarkets
- Update Figure 13: U.S. supermarket sales of energy supplements, at current and constant prices, 1999-2004
- Drug stores
- Update Figure 14: U.S. drug store sales of energy supplements, at current and constant prices, 1999-2004
- Mass merchandisers
- Update Figure 15: U.S. mass merchandiser sales of energy supplements, at current and constant prices, 1999-2004
- Other/direct update
- Update Figure 16: U.S. direct/other sales of energy supplements, at current and constant prices, 1999-2004
The Consumer
- Introduction
Energy supplements—transitioning from youth to mainstream
- Figure 22: Consumption of energy supplements, December 2001 and January 2004
- Figure 23: Consumption of energy supplements, by gender, January 2004
- Figure 24: Consumption of energy supplements, by age, January 2004
- Figure 25: Consumption of energy supplements, by income, January 2004
- Figure 26: Consumption of energy supplements, by race/ethnicity, January 2004
- Figure 27: Consumption of energy supplements, by region, January 2004
Purchases made based on promise to deliver energy
- Figure 28: Incidence of purchase based on promise to deliver energy, January 2004
- Figure 29: Incidence of purchase based on promise to deliver energy, by gender, January 2004
- Figure 30: Incidence of purchase based on promise to deliver energy, by age, January 2004
- Figure 31: Incidence of purchase based on promise to deliver energy, by race/ethnicity, January 2004
Acceptance of energy bars, protein drinks or energy drinks as a way to take vitamins and minerals
- Figure 32: Acceptance of energy bars, protein drinks or energy drinks as a way to take vitamins and minerals, January 2004
- Figure 33: Acceptance of energy bars, protein drinks or energy drinks as a way to take vitamins and minerals, by gender, January 2004
- Figure 34: Acceptance of energy bars, protein drinks or energy drinks as a way to take vitamins and minerals, by age, January 2004
- Figure 35: Acceptance of energy bars, protein drinks or energy drinks as a way to take vitamins and minerals, by race/ethnicity, January 2004
Food and beverages preferred when looking for an energy boost
- Figure 36: Food and beverages preferred when looking for an energy boost, January 2004
- Figure 37: Food and beverages preferred when looking for an energy boost, by gender, January 2004
- Figure 38: Food and beverages preferred when looking for an energy boost, by age, January 2004
- Figure 39: Food and beverages preferred when looking for an energy boost, by race/ethnicity, January 2004
Summary
Future & Forecast
- Future trends
- Aggressive new product development will continue
- Energy-based and vitamin/mineral-based marketing will grow for these products
- Rapid segmentation in energy bars may lead to consolidation
- Rapid growth may taper but will remain strong
- Figure 40: U.S. population projections, by age group, 2005 and 2010
- Market forecast
- Energy supplements
- Figure 41: Forecast of U.S. retail sales of energy supplements, at current and constant prices, 2003-08
- Graph 4: U.S. retail sales of energy supplements, 1998-2003, and forecast for 2004-08
- Graph 4: U.S. retail sales of energy supplements, 1998-2003, and forecast for 2004-08
- Energy bars
- Figure 42: Forecast of U.S. retail sales of energy bars, at current and constant prices, 2003-2008
- Protein liquid/powder drinks
- Figure 43: Forecast of U.S. retail sales of protein liquid/powder drinks, at current and constant prices, 2003-08
- Energy stimulant drinks
- Figure 44: Forecast of U.S. retail sales of energy/stimulant drinks, at current and constant prices, 2003-2008
- Forecast Factors
- Market forecast-Update
- Energy supplements
- Update Figure 17: Forecast of U.S. sales of energy supplements, at current and constant prices, 2004-2009
- Energy bars
- Update Figure 18: Forecast of U.S. sales of energy bars, at current and constant prices, 2004-2009
- Protein liquid/powder drinks
- Update Figure 19: Forecast of U.S. sales of protein liquid/powder drinks, at current and constant prices, 2004-2009
- Energy/stimulant drinks
- Update Figure 20: Forecast of U.S. sales of energy/stimulant drinks, at current and constant prices, 2004-2009
- Forecast factors
Appendix: Trade Associations
Appendix: New Product Developments
- Natures Path Optimum Energy Bar Extensions
- Pay Day High Protein Energy Bar
- FUZE Energy Enhancing Drink
- Diet Fizz Sugar Free Drink Mix
- Boo Koo Wild Energy Supplement
- Imu-lift Effervescent Energy Dietary Supplement
- Category review
- Figure 45: New product introductions of energy supplements, 1998-2004
Appendix: Nutrition Business Journal Source Data
- Figure 46: Total U.S. wholesale and retail sales of nutrition bars, 5 leading brands, 1999-2002, and 2002 retail channel sales Figure 47: Total U.S. wholesale sales of nutrition bars, 5 leading brands by food category, 2002
- Figure 48: Total U.S. company wholesale sales for top 5 nutrition bar companies, 1999-2002
- Figure 49: Total U.S. wholesale and retail sales of sports powders/pills, 2001-02, and 2002 channel sales
- Figure 50: Total U.S. wholesale and retail sales of energy drinks 1999-2002, and 2002 channel sales
Appendix: Research Methodology
- Consumer Research
- Sampling & Weighting
- Presentation & Definition
- Further Analysis
- Trade Research
- Informal trade research
- Formal trade research
- Desk & Internet Research
- Sources
- Definitions
- Forecasts
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