Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Sports drinks’ decline continues in 2017
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- Figure 1: UK value sales of sports drinks, 2012-22
- Energy drinks’ growth slows further in 2017
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- Figure 2: UK value sales of energy drinks, 2012-22
- Upcoming soft drinks industry levy sparks low-sugar NPD
- No uptick in overall exercise
- Income squeeze
- Companies and brands
- Lucozade Sport bucks downward trend in sports drinks
- Lucozade and Monster helped by sugar-free NPD
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- Figure 3: UK retail value sales of leading brands in energy drinks, 2015/16 and 2016/17
- L/N/R sugar claims continue to rise
- “Water” drinks attract NPD
- Adspend leaps ahead thanks to newcomer Carabao
- Lucozade Energy enjoys the strongest brand image
- The consumer
- Sports and energy drinks usage is low and infrequent
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- Figure 4: Frequency of drinking sports and energy drinks, May 2017
- Usage of light variants on a par with standard ones
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- Figure 5: Usage of sports and energy drinks, by type, May 2017
- Sports and energy drinks are widely seen as more sugary than CSDs
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- Figure 6: Perceptions of sports and energy drinks’ sugar content, May 2017
- Fortified water offering sports and energy benefits would appeal
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- Figure 7: Attitudes and behaviours related to sports and energy drinks, May 2017
- Sports and energy drinks are sought for the same needs
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- Figure 8: Functional benefits that would appeal in sports and energy drinks, May 2017
- A widespread perception that you do not need energy drinks if you look after yourself
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- Figure 9: Attitudes towards sports and energy drinks, May 2017
- Sports and energy drinks lack associations with mainstream activities
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- Figure 10: Activities associated with sports and energy drinks, May 2017
- What we think
Issues and Insights
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- Fortified water with sports and energy benefits would appeal
- The facts
- The implications
- Potential for sports drinks brands to move into “health drinks”
- The facts
- The implications
- Caffeine and sugar misperceptions hold back energy drinks
- The facts
- The implications
The Market – What You Need to Know
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- Sports drinks’ decline continues in 2017
- Rising inflation to prop up value sales while volumes fall
- Energy drinks’ growth slows further in 2017
- Outlook depends on market retaining users and addressing concerns
- Upcoming soft drinks industry levy sparks low-sugar NPD
- No uptick in overall exercise
- Income squeeze
Market Segmentation and Forecast
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- Total market value set to grow by a fifth over the next five years
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- Figure 11: UK volume and value sales of sports and energy drinks, 2012-22
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- Figure 12: UK value sales of sports and energy drinks, 2012-22
- Sports drinks’ decline continues in 2017
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- Figure 13: UK volume and value sales of sports drinks, 2012-22
- Rising inflation to prop up value sales while volumes fall
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- Figure 14: UK value sales of sports drinks, 2012-22
- Energy drinks’ growth slows further in 2017
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- Figure 15: UK volume and value sales of energy drinks, 2012-22
- Outlook depends on market retaining users and addressing concerns
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- Figure 16: UK value sales of energy drinks, 2012-22
- Forecast methodology
Market Drivers
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- Upcoming soft drinks industry levy sparks low-sugar NPD
- Soft drinks sugar levy due in 2018
- Announcement fuels uptick in low-sugar NPD
- Sugar is consumers’ top health foe
- Income squeeze
- Ageing population
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- Figure 17: Change in UK population by age group, 2012-17 and 2017-22
- No uptick in overall exercise
- Negative publicity around energy drinks
- Research suggests mixing energy drinks with alcohol fuels risky behaviour
- Calls for ban on sale to under-16s
Companies and Brands – What You Need to Know
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- Lucozade Sport bucks downward trend in sports drinks
- Lucozade and Monster helped by sugar-free NPD
- L/N/R sugar claims continue to rise
- “Water” drinks attract NPD
- Adspend leaps ahead thanks to newcomer Carabao
Market Share
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- Lucozade Sport bucks downward trend in sports drinks
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- Figure 18: UK retail sales of leading brands in sports drinks, by value and volume, 2015/16 and 2016/17
- Three brands dominate energy drinks
- Lucozade remains the top player, helped by sugar-free NPD
- Red Bull retains second position
- Zero-sugar Ultra range supports Monster’s impressive growth
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- Figure 19: UK retail sales of leading brands in energy drinks, by value and volume, 2015/16 and 2016/17
Launch Activity and Innovation
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- Energy drinks continue to dominate NPD
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- Figure 20: Share of new product launches within the UK sports and energy drinks market by sub-category, 2013-17
- Lucozade Sport redesigns packaging and moves into water
- Packaging redesign aims to support brand repositioning
- Lucozade Sport launches Fitwater to win over new users
- Lucozade Energy extends Zero and cuts sugar in core range
- Red Bull promotes its event tie-ups on pack
- Rockstar extends its zero-sugar offering with Revolt sub-brand
- Monster launches a non-carbonated variant and highlights tie-ups
- L/N/R sugar claims continue to rise
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- Figure 21: New product launches in the UK sports and energy drinks market, by claim, 2013-17*
- “Water” drinks target sugar concerns
- No additives or preservatives claims pick up in first half of 2017
Advertising and Marketing Activity
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- Red Bull and Lucozade dominate spending
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- Figure 22: Total above-the-line, online display and direct mail advertising expenditure on sports and energy drinks by the leading operators, 2013-17
- Carabao supports its market entry with high spend
- Lucozade Sport looks to reposition with Made to Move campaign
- Interactive push looks to encourage exercise
- Lucozade Energy continues with Find Your Flow proposition
- Red Bull targets Christmas rush
- Monster partners with Lewis Hamilton for new variant
- Rockstar teams up with Baywatch movie
- Nielsen Ad Intel coverage
Brand Research
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- What you need to know
- Brand map
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- Figure 23: Attitudes towards and usage of selected brands, June 2017
- Key brand metrics
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- Figure 24: Key metrics for selected brands, June 2017
- Lucozade brands lead on trust
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- Figure 25: Attitudes, by brand, June 2017
- Red Bull stands out as vibrant and fun
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- Figure 26: Brand personality – Macro image, June 2017
- Lucozade brands enjoy strongest image as refreshing
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- Figure 27: Brand personality – Micro image, June 2017
- Brand analysis
- Lucozade Energy excels on high quality and reputation
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- Figure 28: User profile of Lucozade Energy, June 2017
- Lucozade Sport shares a similar image to Lucozade Energy
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- Figure 29: User profile of Lucozade Sport, June 2017
- Monster is a divisive brand
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- Figure 30: User profile of Monster, June 2017
- Red Bull is fun and vibrant
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- Figure 31: User profile of Red Bull, June 2017
- Rockstar struggles with awareness
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- Figure 32: User profile of Rockstar, June 2017
The Consumer – What You Need to Know
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- Sports and energy drinks usage is low and rare
- Usage peaks among young men and urban dwellers
- Usage of light variants on a par with standard ones
- Sports and energy drinks are widely seen as more sugary than CSDs
- Fortified water offering sports and energy benefits would appeal
- Sports and energy drinks are sought for the same needs
- 40% think that energy drinks are not needed if you look after yourself
- Caffeine is a source of concern
- Sports and energy drinks lack associations with mainstream activities
Sport and Energy Drinks Usage
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- Sports and energy drinks usage is low and rare
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- Figure 33: Frequency of drinking sports and energy drinks, May 2017
- Usage peaks among young men and urbanites
- Sports drinks uptake echoes sports participation
- Energy drinks most popular among groups pressed for time
- The surprising usage patterns – Women and household finances
Types of Sports and Energy Drinks Used
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- Usage of light variants on a par with standard ones
- A strong case for retaining sugary variants
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- Figure 34: Usage of sports and energy drinks, by type, May 2017
- Light sports drinks are most popular with frequent users
Perceptions of Sports and Energy Drinks’ Sugar Content
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- Sports and energy drinks are widely seen as more sugary than CSDs
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- Figure 35: Sugar content of leading sports and energy drinks and CSDs, August 2017
- Misconceptions are rife among users
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- Figure 36: Perceptions of sports and energy drinks’ sugar content, May 2017
- Case for more visibility of sugar content on-pack
Attitudes and Behaviours Related to Sports and Energy Drinks
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- Fortified water offering sports and energy benefits would appeal
- A wide array of products embrace the “functional water” label
- High interest in sports and energy waters, but sparse availability
- Water products look well-placed to appeal beyond core users
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- Figure 37: Attitudes and behaviours related to sports and energy drinks, May 2017
- High interest in health drinks from sports and energy drink brands
- Caffeine claims veto boosts need for fortification
- Health drink positioning welcomed by most sports and energy drink users
- High demand for energy drinks with no artificial ingredients
Functional Benefits that Appeal in Sports and Energy Drinks
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- Sports and energy drinks are sought for the same needs
- Hydration and tiredness take the lead
- Tiredness and stress are the nation’s top health concerns
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- Figure 38: Functional benefits that would appeal in sports and energy drinks, May 2017
- Support for immune system ties with mental and exercise performance among users
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- Figure 39: Functional benefits that would appeal in sports and energy drinks, among current users, May 2017
Attitudes towards Sports and Energy Drinks
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- Energy drinks are associated with not looking after oneself
- Challenge remains to drive associations with everyday peak performance
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- Figure 40: Attitudes towards sports and energy drinks, May 2017
- Caffeine is a source of concern
- Most energy drinks undercut EFSA limit for safe caffeine dose
- Half of energy drink users worry about caffeine intake
- Low trust in the efficacy and healthiness of sports drinks
- Only a third of users see sports drinks as healthy
- Half of users think sports drinks help you get the most out of exercise
Activities Associated with Sports and Energy Drinks
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- Sports and energy drinks lack associations with mainstream activities
- Both drinks’ main association are with extreme and endurance sport
- Links with mainstream activities are needed to build wider relevance
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- Figure 41: Activities associated with sports and energy drinks, May 2017
- Users see greater differentiation between products
- Energy drinks enjoy stronger everyday associations among users
- Sports drinks retain a strong all-round image even among users
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- Figure 42: Activities associated with sports and energy drinks, by users, May 2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Total
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- Figure 43: UK volume sales of sports and energy drinks, 2012-22
- Figure 44: Best- and worst-case forecast of UK value sales of sports and energy drinks, 2017-22
- Figure 45: Best- and worst-case forecast of UK volume sales of sports and energy drinks, 2017-22
- Sports drinks
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- Figure 46: UK volume sales of sports drinks, 2012-22
- Figure 47: Best- and worst-case forecast of UK value sales of sports drinks, 2017-22
- Figure 48: Best- and worst-case forecast of UK volume sales of sports drinks, 2017-22
- Energy drinks
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- Figure 49: UK volume sales of energy drinks, 2012-22
- Figure 50: Best- and worst-case forecast of UK value sales of energy drinks, 2017-22
- Figure 51: Best- and worst-case forecast of UK volume sales of energy drinks, 2017-22
- Forecast methodology
Appendix – Market Share
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- Figure 52: UK retail sales of sports drinks, by leading distributors, by value and volume, 2015/16 and 2016/17
- Figure 53: UK retail sales of energy drinks, by leading distributors, by value and volume, 2015/16 and 2016/17
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