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

This report contains IRI InfoScan data.