Table of Contents
Overview
-
- What you need to know
- Definition
Executive Summary
-
- Growth slows in 2016, but projected to remain strong through 2021
-
- Figure 1: Total US sales and fan chart forecast of energy drinks/shots, at current prices, 2011-21
- The issues
- Consumers can find energizing properties in a range of beverages
-
- Figure 2: Any use and regular usage of drinks with energizing properties, by type of drink, February 2017
- Energy drinks widely associated with caffeine, sugar, and artificial ingredients
-
- Figure 3: Ingredient associations, by type of beverage, February 2017
- Select attitudes suggest multiple challenges for market
-
- Figure 4: Select attitudes towards energy drinks and shots, February 2017
- The opportunities
- Younger consumers, parents, Hispanics show robust category engagement
-
- Figure 5: Any usage of energy drinks and shot, by select demographics, February 2017
- Men 18-35 post high usage and cite many reasons for using energy drinks
-
- Figure 6: Drinking motivation, for all and men 18-34, February 2017
- Opportunities in low sugar, natural and organic formulations
-
- Figure 7: Factors that would encourage increased usage, for all and women 18-34, February 2017
- Interest in flavors, enhancements and premium ingredients is high
-
- Figure 8: Interest in innovation related to ingredients and enhancements, February 2017
- What it means
The Market – What You Need to Know
-
- Growth continued in 2016, forecast to remain strong through 2021
- The energy drink segment dominates and propels category growth
- Crowded competitive landscape with BFY drinks, RTD coffee and tea
- Demographic trends, including growth of Hispanics, support category
- Challenges, opportunities in natural formulations, and healthy ingredients
Market Size and Forecast
-
- Growth slows in 2016, but projected to remain strong through 2021
-
- Figure 9: Total US sales and fan chart forecast of energy drinks, at current prices, 2011-21
- Figure 10: Total US retail sales and forecast of energy drinks, at current prices, 2011-21
Market Breakdown
-
- Branded products dominate, with private label less than 1% of sales
-
- Figure 11: Market share of MULO channel sales of energy drinks and shots, for largest and “other” brands, 2017
- Energy drinks comprises the largest, fastest growing, segment
-
- Figure 12: Market share of energy drinks, by segment 2016
- Figure 13: Total US retail sales of energy drinks, by segment, at current prices, 2014 and 2016
- Energy drink segment to post robust growth through 2021
-
- Figure 14: Total US retail sales and forecast of carbonated soft drinks, by segment, at current prices, 2016
- Full range of retail channels grow energy drink/shot sales from 2014-16
-
- Figure 15: Total US retail sales of energy drinks, by channel, at current prices, 2014 and 2016
Market Perspective
-
- Range of competing products, many with higher levels of penetration
-
- Figure 16: Consumption of drinks with energizing properties, by type, February 2017
- Demand high for more natural ingredients, and labeling transparency
- Quest for BFY drinks propels demand for enhanced bottled water
- Enhanced juices and hybrid drinks offer natural energy drink alternatives
- Fast-growing RTD Coffee and Tea offerings
- Sports drinks appeal to men 18-35, compete on functionality
- “Enhanced” sodas leverage brand recognition, plus tout added benefits
- Hybrid drinks create more competition…and potential confusion
- Energy drinks in food service and as mixers for cocktails/mocktails
Market Factors
-
- Fast-paced lifestyles spur demand for convenient, functional beverages
- Obesity drives demand for healthier, low or zero sugar drinks
- Engagement among iGeneration and Millennials key to growth
-
- Figure 17: Usage of energy drinks, by generation, February 2017
- Figure 18: US population aged 18+, by age, 2012-22
- Diverse young consumers and parents key to market
-
- Figure 19: Population by race and Hispanic origin, 2012-22
-
- Figure 20: Hispanic share of population, by generation, 2017
- Figure 21: Usage of energy drinks, for Hispanics and Hispanic Millennials, February 2017
Key Players – What You Need to Know
-
- Three largest suppliers command 86% of MULO sales
- Monster grows sales in energy drinks, emerges as leading supplier
- Private label slumps, while “others” build sales and share
- Growth in premium drinks, natural flavors, organics, and botanicals
Manufacturer Sales of Energy Drinks
-
- The three largest energy drink suppliers command 86% of MULO sales
- Private label slumps, while “Other suppliers” see sales and share grow
-
- Figure 22: Manufacturer sales of energy drinks, by leading companies, 2016 and 2017
What’s Working?
-
- Leading energy drink brands see MULO sales growth
- Monster benefits from Coke partnership, focus on 18-35-year-old males
- Monster sees mostly hits, with a few misses
- Red Bull posts gains, reaches Millennials with expanded Editions line
- Rockstar grows sales with new variations
-
- Figure 23: Rockstar shoot with supermodels, February 2017
- Figure 24: Rockstar sponsorships of Sabrosa Craft Beer, Taco & Music Festival, April 2017
- “Other suppliers” build sales and make in-roads
- Brand extensions from Starbucks, Mountain Dew, and AriZona grow sales
- Other brands growth share and share from 2016-17
What’s Struggling?
-
- Private label slumps
- Energy shot sales drop in segment dominated by 5-hour ENERGY
What’s Next?
-
- More Energy drinks with natural, organic, and premium ingredients
- Natural energy drinks with botanicals, honey and super foods
The Consumer – What You Need to Know
-
- Usage is highest among men 18-34, Millennials, parents, and Hispanics
- Boosting energy is top motivator, but secondary reasons are many
- Interest is high for products with lower sugar, more natural ingredients
- Energy drinks still generally associated with less-healthy ingredients
- Consumers eager for innovation in flavor and functionality
- Key attitudes suggest challenges, opportunities for suppliers
Usage of Energy Drinks and Shots
-
- About one in five regularly consume energy drinks
-
- Figure 25: Usage of energy drinks and energy shots, February 2017
- iGeneration and Millennials comprise core energy drink consumer base
-
- Figure 26: Usage of energy drinks, by generation, February 2017
- Gender also at play, with males 18-35 as top energy drink consumers
-
- Figure 27: Usage of energy drinks, by age and gender, February 2017
- Parents consume more energy drinks
-
- Figure 28: Usage of energy drinks, by parental status, February 2017
- Hispanics – especially Hispanic Millennials – use more energy drinks
-
- Figure 29: Usage of energy drinks, by Hispanic origin, February 2017
-
- Figure 30: Usage of energy drinks, for Hispanic Millennials, February 2017
Reasons for Usage
-
- Energy drives usage, but flavor, mood, and mental focus also important
-
- Figure 31: Drinking motivation, February 2017
- Users 18-34, especially males, cite reasons for usage beyond energy
-
- Figure 32: Motivation for energy drink/shot usage, by age and gender, part i, February 2017
-
- Figure 33: Motivation for energy drink/shot usage, by age and gender, part ii, February 2017
- Parents cite a greater number and range of benefits to energy drinks
-
- Figure 34: Motivation for energy drink/shot usage, by parental status, February 2017
- Flavor is an important driver for Hispanic consumption
-
- Figure 35: Motivation for energy drink/shot usage, by Hispanic origin, February 2017
Factors That May Encourage Increased Usage
-
- Consumers seek lower sugar, sustained energy, and refreshing flavors
-
- Figure 36: Factors that would encourage increased usage, February 2017
- Women 18-35 especially interested in hydration, natural formulations
-
- Figure 37: Factors that would encourage increased usage, by age and gender, February 2017
- Parents seek more flavors, organic options, and small sizes
-
- Figure 38: Factors that would encourage increased usage, by parental status, February 2017
- Hispanics seek energy drinks in more refreshing flavors
Ingredient Associations
-
- Energy drinks associated with caffeine, sugar, and artificial ingredients
-
- Figure 39: Ingredient associations, for range of beverages, February 2017
- Males 18-34 more likely to cite range of ingredients in energy drinks
-
- Figure 40: Ingredient associations, for energy drinks and shots, by gender and age, February 2017
- Parents also associate energy drinks with wider range of ingredients
-
- Figure 41: Ingredient associations, for range of beverages, by parental status, February 2017
- Hispanics associate sugar, vitamins, and electrolytes with energy drinks
-
- Figure 42: Ingredient associations, for range of beverages, by Hispanic origin, February 2017
Interest in Innovations
-
- Interest highest in energy products in fruit and tropical flavors
-
- Figure 43: Interest in flavor innovation, February 2017
- Interest in enhancements and premium ingredients is high
-
- Figure 44: Interest in innovation related to ingredients and enhancements, February 2017
- Fruit flavors show widespread appeal; women seek coffee flavors
-
- Figure 45: Interest in innovation, parental status, February 2017
- Integration of antioxidants and probiotics may expand energy drink appeal
-
- Figure 46: Interest in innovation, by age and gender, February 2017
- Parents interested in new flavors, premium ingredients
-
- Figure 47: Interest in flavor and ingredient innovations, by parental status, February 2017
- Hispanics show high interest in flavor innovation
-
- Figure 48: Interest in innovation, by Hispanic origin, February 2017
Attitudes toward Energy Drinks and Shots
-
- Attitudes suggest challenges, opportunities for market
-
- Figure 49: Attitudes toward energy drinks and shots, February 2017
- A quest for new drinks, flavors propels iGeneration users to cut back
-
- Figure 50: Attitudes towards energy drinks and shots, by gender and age, February 2017
- Parents find drinks refreshing, hydrating – but sometimes are embarrassed to use them
-
- Figure 51: Attitudes toward energy drinks and shots, by parental status, February 2017
- Both Hispanics and Asians more likely to find energy drinks refreshing
-
- Figure 52: Attitudes toward energy drinks and shots, by race and hispanic origin, February 2017
Appendix – Data Sources and Abbreviations
-
- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – The Market
-
-
- Figure 53: Total US sales and forecast of energy drinks/shots, at inflation-adjusted prices, 2011-21
- Figure 54: Total US sales and forecast of energy drinks, at current prices, 2011-21
- Figure 55: Total US sales and forecast of energy drinks, at inflation-adjusted prices, 2011-21
- Figure 56: Total US sales and forecast of energy shots, at current prices, 2011-21
-
- Figure 57: Total US sales and forecast of energy shots, at inflation-adjusted prices, 2011-21
- Figure 58: Total US retail sales of energy drinks, by retail channel, at current prices, 2010-20
- Figure 59: Average household size, by race and Hispanic origin, 2016
-
- Figure 60: Distribution of generations by race and Hispanic origin, 2017
- Figure 61: Median household income, by race and Hispanic origin of householder, 2015
-
Appendix – Key Players
-
-
- Figure 62: MULO sales of energy drinks by leading companies and brands, rolling 52 weeks 2016 and 2017
- Figure 63: MULO sales energy shots by leading companies and brands, rolling 52 weeks 2016 and 2017
-
Back to top