Abstract
This report provides analysis and insights that can help in positioning marketing messages, launch of new products, and retail strategies that can help invigorate sales in the market, like: the influence of teens and young adults on the market; which racial/ethnic group is driving the most growth; new energy drink product introduction and analysis by flavor and claims; influence of glut of small manufacturers in the market; an understanding of the profile of the energy drink consumer by analyzing demographics, frequency of consumption, and brand usage; attitudes and opinions of the energy drinks consumer-and why people do not use energy drinks; and why the market may not be able to sustain current growth.
Using proprietary consumer research, statistical analysis, and other information tools such as GNPD, and through other primary and secondary research, Mintel provides actionable insights for the energy drinks market on the issues listed above, and on many other industry matters.
Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Market at a glance
- Packaging size--a value proposition and growth driver
- Red Bull continues to be the top manufacturer but loses market share
- Convenience stores account for over 80% of the total retail sales
- Energy drinks consumers
- Adult consumer
- Teen consumer
- Future sales may not exhibit the current sales momentum built during 2001-06
- Market Drivers
- A growing need for energy boost
- Figure 1: Purpose of drinking energy drinks, February 2007
- Figure 2: Energy drinks penetration, 2002-06
- Demographic influences
- Young adults drive the market
- Figure 3: Energy drinks consumption, by age, January-October 2006
- Edgy marketing targeted to young lifestyles
- My drink and my caffeine--not my Mom and Dad' s
- Figure 4: Consumption of coffee, by age, August 2006
- Figure 5: U.S. population of young adults aged 18-34, by age, 2000-11
- Teens positively impact energy drinks market
- Figure 6: Consumption of energy drinks, January-October 2006
- Figure 7: U.S. population of teens aged 12-17, 2001-11
- Growth through energy drinks targeting women
- Blacks and Hispanics--key racial/ethnic demographics in the market
- Figure 8: Energy drinks consumption, by race/ethnicity, January-October 2006
- Figure 9: Population, by race and Hispanic origin, 2001-11
- Figure 10: Hispanic and black purchasing power, 1990-2011
- Innovation through line extensions
- Packaging
- Juice hybrids
- Energy drinks as a mixer
- Figure 11: Usage of beer and spirits in the past 12 months among all adults and energy drink users, 2004 and 2006
- Market Size and Trends
- Market size
- Figure 12: Total U.S. retail sales of energy drinks, at current and constant prices, 2001-06
- Figure 13: Average price per fluid ounce of various RTD non-alcoholic beverages at FDM, 2006
- Wal-Mart estimate
- Figure 14: Number of regular stores and supercenters opened by Wal-Mart, FY 2001-05
- Market trends
- Product proliferation--taboo names attract target consumers
- Figure 15: New energy drink product releases, 2001-07*
- Figure 16: New energy drink product claims, 2001-07
- Figure 17: New energy drink product flavors, 2001-07
- Market Segmentation
- Introduction
- Figure 18: Energy drinks sales through FDM*, segmented by type, 2004 and 2006
- Non-aseptic energy drinks
- Figure 19: FDM* sales of non-aseptic energy drinks, at current and constant prices, 2001-06
- Figure 20: Price comparison of single-serve and multipacks for Red Bull, 2007
- Aseptic energy drinks
- Figure 21: FDM* sales of aseptic energy drinks, at current and constant prices, 2001-06
- Mixes
- Figure 22: FDM* sales of non-aseptic energy drinks, at current and constant prices, 2001-06
- Supply Structure
- Consolidation in the beverage industry
- Merger and acquisition activity
- Expansion in distribution for small players
- Companies and brands
- Figure 23: FDM* sales of major manufacturers in the energy drinks market in the U.S., 2004 and 2006
- Brand sales of energy drinks
- Figure 24: Selected brand sales and market share of major energy drinks at FDM* in the U.S., 2004 and 2006
- Figure 25: Selected brand sales and market share of high-growth energy drinks at FDM* in the U.S., 2004 and 2006
- Manufacturers' profiles
- Red Bull
- Hansen Natural Corporation
- Distribution strategy and customers
- Figure 26: Hansen Natural Corporation sales, by channel, 2005
- Sales
- Rockstar International
- PepsiCo, Inc.
- The Coca-Cola Company
- Advertising and Promotion
- Introduction
- Coca-Cola
- Hansen Natural Corporation
- PepsiCo
- Figure 27: Amp Energy--TV ad, 2006
- Red Bull
- Retail Distribution
- Introduction
- Figure 28: U.S.* retail sales of energy drinks, by channel, 2004 and 2006
- Convenience stores
- Figure 29: U.S. convenience store sales of energy drinks, at current and constant prices, 2001-06
- Supermarkets
- Figure 30: U.S. supermarket sales of energy drinks, at current and constant prices, 2001-06
- Drug stores
- Figure 31: U.S. drug store sales of energy drinks, at current and constant prices, 2001-06
- The Consumer: Usage, Frequency of Use, Brand Use
- Summary
- The adult consumer
- Teen consumer
- Adults and energy drinks
- Overview
- Figure 32: Incidence of energy drinks consumption, 2002-06
- Figure 33: Incidence of energy drinks consumption, by gender, January-October 2006
- Figure 34: Incidence of energy drinks consumption among males, 2002-06
- Figure 35: Incidence of energy drinks consumption among females, 2002-06
- Figure 36: Incidence of energy drinks consumption, by age, January-October 2006
- Figure 37: Incidence of energy drinks consumption among adults aged 18-24 and 25-34, 2002-06
- Figure 38: Incidence of energy drinks consumption, by race/ethnicity, January-October 2006
- Figure 39: Incidence of energy drinks consumption among blacks and Hispanics, 2002-06
- Figure 40: Incidence of energy drinks consumption, by marital status, January-October 2006
- Figure 41: Incidence of energy drinks consumption, by presence of children in the household, January-October 2006
- Figure 42: Incidence of energy drinks consumption, by region, January-October 2006
- Consumption by brand
- Figure 43: Consumption of energy drinks, by brands, by gender, January-October 2006
- Frequency of consumption
- Figure 44: Frequency of consumption of energy drinks, 2004 and 2006
- Figure 45: Frequency of consumption of energy drinks, by gender, January-October 2006
- Figure 46: Frequency of consumption of energy drinks, by age, January-October 2006
- Figure 47: Frequency of consumption of energy drinks, by race/ethnicity, January-October 2006
- Teens and energy drinks
- Overview
- Figure 48: Energy drink penetration among teens, January-October 2006
- Figure 49: Energy drinks penetration among teens, 2002-06
- Figure 50: Energy drinks penetration among teens, by gender/age, January-October 2006
- Figure 51: Energy drinks penetration among teens, by race/ethnicity, January-October 2006
- Consumption by brand
- Figure 52: Consumption of energy drinks, by brands, by gender, January-October 2006
- Frequency of consumption among teens
- Figure 53: Frequency of consumption of energy drinks among teens, January-October 2006
- The Consumer: Where, When, Why and How Energy Drinks Are Used
- Summary
- Energy drink retail channel preferences
- Brand loyalty
- Occasions to drink energy drinks
- Places to drink energy drinks
- Purpose of drinking energy drinks
- Ingredients valued
- Attitudes toward attractiveness, exercise, and risk taking: 18-24 year olds
- Energy drinks and food and other beverages
- Where consumers buy energy drinks and what they buy
- Energy drink retail channel preferences
- Figure 54: Choice of retail channels to purchase energy drinks, by age, February 2007
- Energy drink brand loyalty
- Figure 55: Energy drink brand loyalty, by race/ethnicity, February 2007
- When and where consumers drink energy drinks
- Occasions to drink energy drinks
- Figure 56: Occasions to drink energy drinks, by age, February 2007
- Places to drink energy drinks
- Figure 57: Places to drink energy drinks, by age, February 2007
- Why consumers drink energy drinks
- Purpose of drinking energy drinks
- Figure 58: Purpose of drinking energy drinks, by age, February 2007
- Energy drink ingredients consumers value
- Figure 59: Preference for energy drink ingredients, by age, February 2007
- Attitudes toward attractiveness, exercise, and risk taking: 18-24 year olds
- Figure 60: Attitudes toward attractiveness, exercise, and risk taking, by energy drink preferennce, males aged 18-24, January-October 2006
- Figure 61: Attitudes toward attractiveness, exercise, and risk taking, by energy drink preferennce, females aged 18-24, January-October 2006
- How consumers drink energy drinks
- Energy drinks and food
- Figure 62: Energy drinks usage with food, by age, February 2007
- Figure 63: Energy drinks usage with food, by race/ethnicity, February 2007
- Energy drinks usage with other beverages
- Figure 64: Energy drinks usage with other beverages, by age, February 2007
- Figure 65: Energy drinks usage with other beverages, by race/ethnicity, February 2007
- The Consumer: Hybrid Preferences and Who Does Not Use Energy Drinks
- Summary
- Energy drink hybrid preferences
- Reasons for not drinking energy drinks
- Energy drink preferences among non-users
- Preference for selected energy drink hybrids
- Figure 66: Preference for selected energy drinks options, by age, November 2006
- Figure 67: Preference for selected low-calorie/sugar-free energy drinks, by gender, November 2006
- Understanding the consumer who does not drink energy drinks
- Why consumers do not drink energy drinks
- Figure 68: Reasons for not drinking energy drinks, by age, February 2007
- Energy drink preferences of non-drinkers
- Figure 69: Energy drink interests of non-drinkers, by age, February 2007
- Future and Forecast
- Future trends
- Increased attention from researchers and health authorities on negative
influence of energy drinks on health
- Figure 70: Caffeine content of selected beverages, 2006
- Proliferation of products may lead to price war in the industry
- Demographic influences
- Young adults and teens
- Figure 71: U.S. population of teens and young adults aged 12-34, by age, 2000-11
- Hispanics and blacks--promise for continued growth
- Figure 72: Population, by race and Hispanic origin, 2001-11
- Increasing influence of hybrids
- Competition from hybrid soda
- Trend towards pre-mixed alcoholic energy drinks
- Increased innovation in natural energy-boosting foods and beverages
- Continued consolidation in the industry
- Market forecast
- Energy drinks
- Figure 73: Forecast of total U.S. sales of energy drinks, at current and constant prices, 2006-11
- FDM Energy drinks
- Figure 74: Forecast of U.S. FDM sales of energy drinks, at current and constant prices, 2006-11
- Forecast factors
- Appendix: Trade Associations
