After a period of robust growth, sales in the sports and energy market lost momentum in 2014, with volume sales expected to fall by 1% in 2015. While energy drinks are doing well, this has been offset by the poor performance of the sports drinks segment. Value sales in the market are thus expected to remain relatively flat in 2015 at £1.5 billion.

The energy drinks segment makes up the vast majority of the market and has enjoyed estimated value growth of 47% over the 2010-15 period. This has been supported by new product launches and marketing, as well as the enduring popularity of the energy proposition. The regulation requiring additional caffeine labelling introduced in December 2014 and concern over the high caffeine content of energy drinks could however dampen demand.

Meanwhile consumer concerns around the sugar content and artificial ingredients of sports drinks are likely to have played a role in the segment’s troubles. Interest in versions made with no refined sugar or sweeteners, as well the appeal of natural ingredients warrant exploration to address these issues.

This report focuses on RTD (ready-to-drink) sports and energy drinks through both the retail and on-trade channels.

Sports drinks are drinks claiming to improve sporting performance or to speed up recovery. Most of these are labelled isotonic/hypotonic and claim to rehydrate and replenish nutrients after exercise. Examples include Lucozade Sport, Powerade and Gatorade.

Sports drinks are divided into three major types:

• Isotonic drinks: These have the same osmolality as that in the body, and are designed to aid rehydration, as they are said to be readily absorbed into the blood. Most sports drinks are isotonic, including Powerade and Lucozade Sport.

• Hypotonic drinks: These have a lower osmolality than body fluid and are said to be absorbed more quickly than isotonic drinks and more quickly than water into the blood.

• Hypertonic drinks: These have a higher osmolality than body fluids and are designed to be taken after exercise to replace electrolytes, aid recovery and provide an energy boost.

Energy drinks are drinks that specifically claim to provide an energy or stimulant boost, supporting mental alertness and/or physical performance. These generally include active ingredients such as glucose, caffeine or taurine, and may include other ingredients positioned as beneficial to health, such as ginseng and various vitamins and minerals.

The energy drinks market divides itself into three distinct categories:

• Refreshment energy drinks provide physical energy through glucose or a range of sugars, as in Lucozade Original Energy.

• Stimulant drinks are designed to stimulate both mind and body, and typically claim to improve concentration, reaction time and endurance. Stimulant drinks typically contain active ingredients such as caffeine and taurine, and are non-alcoholic. The best-known example is Red Bull.

• Energy shots refers to what are usually more concentrated versions of refreshment/stimulant drinks, ie they typically retail in a 50ml bottle rather than in a can of between 250ml and 500ml.

Protein-based sports nutrition drinks are excluded from this report, being discussed in Attitudes towards Sports Nutrition, UK – June 2015.