• Energy drinks across key global markets enjoyed volume growth of 10% between 2014-15 to reach 8.8 billion litres, the strongest annual rise since 2012

• More energy drinks were launched globally in 2015 than any year before, and introductions bearing an organic claim reached a record high

• Chinese consumers drank an extra 545 million litres of sports drinks over 2014 and 2015, which is nearly four times the amount Americans drank

Energy drinks continued to defy condemnation from health lobbyists in 2015 by remaining one of the most consistently strong-performing soft drinks categories. The growth rate in global energy drinks accelerated in 2015, with volumes climbing by 10% between 2014-15 to reach 8.8 billion litres. This represents the strongest annual rise since 2012. The primary driver of this growth remains the drinks’ capacity to provide consumers with a quick and effective energy boost – something which resonates with consumers the world over.

Energy drinks also benefit from being championed by giant brands like Red Bull, which devote huge investment to advertising and high profile marketing initiatives to project an exciting and edgy image. In less developed regions, local energy brands are emerging and gaining distribution as a more affordable alternative to multinationals, heaping pressure on the likes of Red Bull to project a brand identity that consumers from New York to Nigeria want to be associated with, and pay more for. One brand that is set to see its geographic reach explode is Monster Energy. It has been busy switching from third party bottlers to the global distribution network of its new partner, Coca-Cola, and will be established in various far-flung markets by the end of 2016.

Rising usage in emerging markets is set to support growth in energy drinks, as is the category’s lively approach to innovation. Although launch activity in the US tumbled in 2015, more energy drinks were launched globally that year than at any time before, with introductions bearing an organic claim reaching a record high. This illustrates how the sector is attempting to appeal to a broader audience by conveying a more natural image. For the foreseeable future, brands will remain under pressure to reformulate with better-for-you ingredients. Although recently the war on sugar has – to some extent – diverted criticism from high caffeine drinks, the industry remains subject to calls for stricter regulation.

Meanwhile, the sports drinks market remains much larger, and recorded a 6.7% growth between 2014 and 2015 to reach 14.6 billion litres. The US remains the world’s biggest sports drinks market, with a huge 45% global share by volume in 2015, followed by China, which has nearly tripled in size since 2010. And although the US market is so much larger, Chinese consumers drank an extra 545 million litres of sports drinks over 2014 and 2015 which is nearly four times the amount Americans drank. This reflects changing lifestyle behaviour, with more Chinese consumers exercising and drinking sports drinks – like the market leading Mizone by Danone – as a result. The US is recording steady, if not spectacular, growth in sports drinks, though competition from energy drinks and bottled water is bringing challenges to European markets, with Germany, Russia, The Netherlands and Italy in long term decline. 

Figure 3: Top five energy drink markets, by per capita consumption (litres), 2015*

*Forecast

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Source: Information Resources, Inc., Economist Intelligence Unit/ Mintel

Please note: the market size data referenced in this report is current as of January 31, 2016