Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Energy drinks market topped $4.6 billion in 2009
- Energy drinks drove growth since 2004, but energy shots are poised for growth in 2009
- Market consolidates under Red Bull, Coca-Cola and PepsiCo
- Convenience stores account for majority of sales
- Record level of new products introduced in 2008
- User base continues to expand
- Consumer attitudes and motivations
Insights and Opportunities
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- Energy drinks must broaden appeal to grow consumer base
- Lower-price options would attract price-sensitive consumers
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- Figure 1: Everyday retail prices for select energy drink brands, June 2009
- Need to dispel health and safety concerns
Inspire Trends
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- Consistency
- What’s it about?
- What we have seen
- Implications
- Slow it all down: a trend favoring anti-energy drinks
- What’s it about?
- What we have seen
- Implications
Market Size and Forecast
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- Key points
- New users and product innovation driving growth; however, the recession inhibits growth in 2008
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- Figure 2: FDMx and c-store sales* and forecast of energy drinks, at current prices, 2004-14
- Figure 3: FDMx and c-store sales* and forecast of energy drinks, at inflation-adjusted prices, 2004-14
- Walmart sales
Competitive Context
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- Premium-priced energy drinks hit hard by recession
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- Figure 4: FDMx prices for select non-alcoholic beverages, 2008
- Manufacturers are scrambling to deliver value
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- Figure 5: Everyday retail prices for select energy drink brands, June 2009
- Other beverages seek to steal energy drinks’ mojo
- Big players snapping up brands to gain market share
Segment Performance
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- Key points
- Energy drinks are largest segment, but energy shots may be cannibalizing sales
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- Figure 6: FDMx sales and forecast of energy drinks and energy shots, at current prices, by segment, 2004-14
- Energy shots will take away market share from energy drinks
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- Figure 7: FDMx sales of energy drinks and energy shots, by type, 2007 and 2009
Segment Performance—Energy Drinks (Non-aseptic)
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- Key points
- Rapid growth driven by expanding user base and new products
- Sales slow in 2008 amid troubled economy and safety concerns
- Sales and forecast—non-aseptic energy drinks
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- Figure 8: FDMx sales and forecast of non-aseptic energy drinks, 2004-14
Segment Performance—Energy Shots
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- Key points
- Energy shots are poised for growth
- Sales and forecast—energy shots
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- Figure 9: FDMx sales and forecast of energy shots, 2004-14
Segment Performance—Energy Drink Mixes
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- Key points
- New products driving growth
- Mixes offer consumers value and convenience
- Sales and forecast—non-aseptic energy drinks
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- Figure 10: FDMx sales and forecast of energy drinks mixes, 2004-14
Retail Channels
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- Key points
- Consumers shop for energy drinks in a variety of channels
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- Figure 11: Location of purchase of energy drinks and energy shots, April 2009
- Convenience stores dominate sales
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- Figure 12: FDMx and c-store sales of energy drinks, by retail channel, 2006 and 2008
Retail Channels—Supermarkets
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- Key points
- Increased shelf space translates to sales growth
- Supermarkets are slow to capitalize on rising popularity of energy shots
- Supermarket sales
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- Figure 13: U.S. sales of energy drinks at supermarkets, 2004-08
- Figure 14: U.S. sales of energy shots at supermarkets, 2004-08
Retail Channels—Convenience Stores
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- Key points
- Energy drinks among fastest-growing categories in c-stores
- C-stores serve as a launch pad for new brands
- Energy shots may cannibalize energy drinks sales in c-stores
- Convenience store sales
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- Figure 15: U.S. sales of energy drinks at convenience stores, 2004-08
Retail Channels—Drug and Other
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- Key point
- Drug stores: Set to experience growth through energy shots
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- Figure 16: New soda product introductions, energy drinks and carbonated soft drinks, by retail channel, January 2004-June 2009
- Drug and other sales
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- Figure 17: U.S. sales of energy drinks at drug and other, 2004-08
- Figure 18: U.S. sales of energy shots at drug and other, 2004-08
Retail Channels—Natural Stores
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- Sales of energy drinks in the natural channel
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- Figure 19: Natural product supermarket retail sales of energy drinks, at current prices, 2007-09*
- Figure 20: Natural product supermarket retail sales of energy drinks, at inflation-adjusted prices, 2007-09*
- Brand sales through the natural channel
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- Figure 21: Manufacturer and brand sales* of energy drinks at natural supermarket, 2007 and 2009
- Natural channel sales of energy drinks by organic
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- Figure 22: Natural product supermarket retail sales* of energy drinks, by organic/non-organic, 2007 and 2009
Market Drivers
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- Teens and young adults remain core users, but usage among older consumers is on the rise
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- Figure 23: Personal incidence of drinking energy drinks among teens, and adults, by age, 2003-08
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- Figure 24: U.S. population of teens aged 12-17, 2004-14
- Figure 25: Population aged 18 or older, by age, 2004-14
- Hispanics and blacks will be key to growth
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- Figure 26: Trends in individual consumption of energy drinks, by race/Hispanic origin, 2003-08
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- Figure 27: Population by race and Hispanic origin, 2004-14
- Sugar is the new enemy in Americans’ battle against obesity
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- Figure 28: Percentage of population aged 20 and over who are overweight or obese or extremely obese, 1988-2006
- Figure 29: Attitude towards health, 2004 and 2009
- High caffeine content scares off some consumers
- Safety concerns threaten sales
- Health risk increase when energy drinks are mixed with alcohol
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- Figure 30: Reasons for drinking energy drinks and energy shots, by age, May 2009
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- Figure 31: Beer and spirits consumption in the past 12 months among all adults and energy drinks users, February 2008-March 2009
Leading Companies
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- Key points
- Market consolidates under the “big three”— Red Bull, Coca-Cola and PepsiCo
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- Figure 32: FDMx sales of leading energy drinks and energy shots companies, 2008 and 2009
Brand Share—Energy Drinks (Non-aseptic)
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- Key points
- Monster takes a big bite out of Red Bull sales
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- Figure 33: Incidence of drinking Red Bull among adults and teens, 2003 and 2008
- New varieties AMP up sales
- New product launches fuel growth of “other” brands
- Manufacturer and brand sales—non-aseptic energy drinks
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- Figure 34: FDMx brand sales of non-aseptic energy drinks in the U.S., 2008 and 2009
Brand Share—Energy Shots
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- Key points
- Dozens of new energy shot brands are taking shots at 5-Hour Energy
- Manufacturer and brand sales—energy shots
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- Figure 35: FDMx brand sales of energy shots in the U.S., 2008 and 2009
Brand Qualities
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- Monster Energy
- AMP Energy
Innovation and Innovators
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- Key points
- Pace of product introduction peaked in 2008
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- Figure 36: Number of new energy drink and shot introductions in the U.S., 2004-09
- Top ten claims for new energy drinks and shots, 2007-09
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- Figure 37: Top ten claims for new energy drinks/shots, 2007-09
- Better-for-you energy drinks
- Sharing in tea’s success
- Energy drinks that really hydrate
- Coffee, juice, even chocolate hybrids
- Energy drinks that work for you
- Anti-energy drinks
- Monster introduces resealable can
Advertising and Promotion
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- Overview
- Red Bull gives you wiiings
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- Figure 38: Red Bull television ad, 2009
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- Figure 39: Red Bull television ad, 2009
- Go Full Throttle or go home
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- Figure 40: Full Throttle television ad, 2009
- Party like a Rockstar
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- Figure 41: Rockstar television ad, 2009
- SoBe No Fear
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- Figure 42: No Fear television ad, 2009
- Evo offers “positive” energy
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- Figure 43: Evo television ad, 2009
Energy Drinks Usage, Frequency and Brands—Adults
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- Key points
- Trended energy drinks usage
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- Figure 44: Consumption of energy drinks, by gender, age, race/Hispanic origin, education, households with children, and region, 2003-08
- Energy drink frequency of use
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- Figure 45: Average volume* consumption of energy drinks, by gender, age, race/Hispanic origin, education, households with children, and region, 2003-08
- Energy shots usage
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- Figure 46: Consumption of energy drinks and energy shots, by age, April 2009
- Popularity of brands by age
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- Figure 47: Consumption of energy drinks, by choice of brands, by age, October 2007-December 2008
The Teen Consumer: Usage, Frequency and Brands
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- Key points
- Trended energy drinks usage—teens
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- Figure 48: Consumption of energy drinks among teens, by gender, age, and race/Hispanic origin, 2003-08
- Energy drinks usage frequency—teens
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- Figure 49: Volume* consumption of energy drinks among teens, by gender, age, and race/Hispanic origin, 2005 and 2008
- Energy shots usage among teens
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- Figure 50: Personal incidence of drinking energy drinks and energy shots, teens vs. adults, April 2009
- Brand popularity—teens
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- Figure 51: Consumption of energy drinks among teens, by brand, by age and gender, October 2007-December 2008
Teen Attitudes, Behavior and Motivations
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- Key points
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- Figure 52: Teen attitude, behavior, and motivation toward energy drinks, April 2009
Adult Attitudes, Behavior and Motivation
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- Key points
- Reasons for using
- Reasons for using energy drinks and energy shots
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- Figure 53: Reasons for drinking energy drinks and energy shots, April 2009
- Impact of gender on reasons for using energy drinks
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- Figure 54: Reasons for drinking energy drinks, by gender, April 2009
- Reasons for using energy drinks by age
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- Figure 55: Reasons for drinking energy drinks, by age, April 2009
- Ingredients most valued
- Drinks vs. shots
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- Figure 56: Most valued ingredient in energy drinks and energy shots, April 2009
- Ingredients consumers value most by age
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- Figure 57: Most valued ingredient in energy drinks, by age, April 2009
- Drinking occasions
- Drinks vs. shots
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- Figure 58: Occasions to drink energy drinks and energy shots and usage with food, April 2009
- Usage occasions by age
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- Figure 59: Occasions to drink energy drinks and usage with food, by age, April 2009
- Opinions about energy drinks
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- Figure 60: Attitude and behavior toward using energy drinks, by gender, April 2009
Usage Barriers
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- Key points
- Usage barriers
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- Figure 61: Reasons for not drinking energy drinks and energy shots, April 2009
The Impact of Race and Hispanic Origin
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- Brand usage
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- Figure 62: Consumption of energy drinks, by brand, by race/Hispanic origin, October 2007-December 2008
- Reasons for using energy drinks
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- Figure 63: Reasons for drinking energy drinks, by Hispanic origin, April 2009
- Usage occasions
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- Figure 64: Occasions to drink energy drinks and usage with food, by Hispanic origin, April 2009
- Attitudes and behavior
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- Figure 65: Attitude and behavior toward using energy drinks, by race/Hispanic origin, April 2009
Cluster Analysis
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- Boosters
- Who they are
- Opportunity
- Wakers
- Who they are
- Opportunity
- Energizers
- Who they are
- Opportunity
- Cluster characteristics
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- Figure 66: Energy drink clusters, April 2009
- Figure 67: Personal incidence of drinking energy shots, by energy drink clusters, April 2009
- Figure 68: Reasons for drinking energy drinks, by energy drink clusters, April 2009
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- Figure 69: Occasions to drink energy drinks and usage with food, by energy drink clusters, April 2009
- Figure 70: Most valued ingredient in energy drinks, by energy drink clusters, April 2009
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- Figure 71: Attitude and behavior toward using energy drinks, by energy drink clusters, April 2009
- Cluster demographics
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- Figure 72: Energy drink clusters, by gender, April 2009
- Figure 73: Energy drink clusters, by age, April 2009
- Figure 74: Energy drink clusters, by income group, April 2009
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- Figure 75: Energy drink clusters, by Hispanic origin, April 2009
- Cluster methodology
Custom Consumer Groups
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- Blue-collar workers are prime target, ongoing recession may thwart sales
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- Figure 76: Incidence, frequency and usage, by brands of energy drinks usage among blue-collar workers, October 2007-December 2008
- “Struggling societies” exhibit above-average consumption
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- Figure 77: Incidence, frequency and usage, by brands of energy drinks usage among struggling societies, October 2007-December 2008
- Among the wealthy, “new suburbia families” are key consumers
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- Figure 78: Incidence, frequency and usage, by brands of energy drinks usage among suburbia families, October 2007-December 2008
- Hispanics are core consumers, consumption frequency and brand preference vary by lifestyle
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- Figure 79: Incidence, frequency and usage, by brands of energy drinks usage among Nuevo Hispanic families, aspiring Hispanics, and Latino Nuevo, October 2007-December 2008
IRI/Builders Panel Data—Key Household Purchase Measures
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- Overview of energy drinks
- SS energy drinks (non-aseptic)
- Consumer insights on key purchase measures—SS energy drinks (non-aseptic)
- Brand map
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- Figure 80: Brand map, selected brands of SS energy drinks (non-aseptic), buying rate by household penetration, 2008*
- Brand leader characteristics
- Key purchase measures
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- Figure 81: Key purchase measures for the top brands of SS energy drinks (non-aseptic), by household penetration, 2008*
Appendix: IRI/Builders Panel Data Definitions
Appendix: Other Useful Consumer Tables
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- Figure 82: Consumption of energy drinks, by choice of brands, by gender, October 2007-December 2008
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- Figure 83: Consumption of energy drinks, by choice of brands, by region, October 2007-December 2008
- Ingredients most valued, by gender
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- Figure 84: Most valued ingredient in energy drinks, by gender, April 2009
- Women are less likely than men to use energy drinks with food
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- Figure 85: Occasions to drink energy drinks and usage with food, by gender, April 2009
- Consumers in the key consumer age group are most likely to deem energy drinks unsafe
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- Figure 86: Reasons for not drinking energy drinks, by age, April 2009
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- Figure 87: Reasons for not drinking energy shots, by age, April 2009
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Appendix: Trade Associations
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- Beverage Industry
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