Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Steady growth seen in 2017 and forecast through 2022
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- Figure 1: Total US sales and fan chart forecast of energy drinks, at current prices, 2012-22
- The issues
- Many beverages that offer energy are available…and widely used
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- Figure 2: Other drinks used for energy other than energy drinks/shots, March 2018
- Concerns related to ingredients, safety and sweetness limit consumption
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- Figure 3: Reasons did not purchase energy drinks and shots, March 2018
- Energy drinks often seen as “not for people like me” beyond 18-34 male demographic
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- Figure 4: Energy drinks/shots are “not for people like me,” by age/gender, March 2018
- The opportunities
- 18-34-year-olds and parents are avid consumers who regularly use energy drinks
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- Figure 5: net consumption of energy drinks, for men, 18-34 year olds and parents, March 2018
- Dads in particular are enthusiastic and regular energy drink consumers
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- Figure 6: Frequency of consumption of energy drinks, for 18-34 year olds, moms and dads, March 2018
- Distinct reasons for drink/shot usage illuminate opportunities for differentiation
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- Figure 7: Reasons for usage, by type of product, March 2017
- Interest is high in new flavors and drink recipes
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- Figure 8: interest in new flavors and drink recipes, for select demographics, March 2018
- What it means
The Market – What You Need to Know
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- Growth remains positive, fairly stable in $13.4 billion market
- Energy drink segment is largest and fastest growing
- Highly competitive landscape with many drink options for energy
- Concern with additives, sugar and safety continues to fuel innovation
Market Size and Forecast
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- 2017 growth approaches 6% in the $13.4 billion market
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- Figure 9: Total US sales and fan chart forecast of energy drinks, at current prices, 2012-22
- Figure 10: Total US retail sales and forecast of energy drinks, at current prices, 2012-22
Market Breakdown
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- The top four brands control vast majority of the market
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- Figure 11: market share of MULO channel sales of energy drinks and shots, for top four brands and other/private label brands, 2018
- Energy drinks dominates, accounting for majority of sales and growth
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- Figure 12: Market share of energy drinks, by segment 2017
- Figure 13: Total US retail sales of energy drinks, by segment, at current prices, 2015 and 2017
- Segment growth trends forecast to continue through 2022
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- Figure 14: Total US retail sales and forecast of carbonated soft drinks by segment, at current prices, 2016
- C-stores comprise largest retail channel, but “others” fastest growing
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- Figure 15: Total US retail sales of energy drinks, by channel, at current prices, 2015 and 2017
Market Perspective
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- Consumers turn to a wide range of drinks for energy
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- Figure 16: Other drinks used for energy other than energy drinks/ shots, March 2018
- Demand is high for BFY drinks with more natural, low sugar profiles
- Hybrid drinks notably tout BFY benefits and may inspire innovation
- RTD coffee and tea compete directly with energy drinks in c-stores
- Sports drinks are widely used for energy by men and women 18-34
- “Enhanced” sodas and refreshed diet soda brands also compete
Market Factors
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- Managing health, weight and energy in busy, on-the-go lifestyles
- Positive macro-economic context underpins spending on energy drinks
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- Figure 17: Consumer confidence and unemployment, 2000-February 2018
- 18-34-year-olds, key to market growth, are increasingly diverse
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- Figure 18: US population aged 18+, by age, 2013-23
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- Figure 19: Population by race and Hispanic origin, 2013-23
- Figure 20: Distribution of population, by age race and Hispanic origin, 2018
Key Players – What You Need to Know
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- Four largest players account for 95% of MULO sales
- Monster confirms leading position in the market
- Red Bull expands reach and Rockstar grows, but slowly
- Smaller natural labels innovate in flavors and functionality
Brand Sales of Energy Drinks
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- Four largest suppliers account for 95% of MULO sales
- Private label and “other suppliers” struggle to build share
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- Figure 21: Manufacturer sales of energy drinks, by leading companies, 2017 and 2018
What’s Working?
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- Energy drinks continue to grow sales
- Monster expands its leading position in the energy drink segment
- Monster Zero Energy Ultra stands out as strong performer
- Red Bull’s growth is more modest, but is innovating to expand reach
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- Figure 22: Red Bull 2017 recap, 2018
- Smaller, specialized product lines drive Rockstar’s growth
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- Figure 23: rockster God of War promotion, April 2018
- While growth slow for most “other suppliers,” a few make inroads
- Arizona RX Energy and V8 Fusion Plus Energy show growth
- Several other suppliers grow sales from 2017-18
What’s Struggling?
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- Brand recognition matters, private label and smaller brands struggle
- The energy shot segment continues to lose volume and share
What’s Next?
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- Premium, natural ingredients and flavors
- Natural energy and benefits, with ingredients from probiotics to propolis
The Consumer – What You Need to Know
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- Males, those aged 18-34 and parents stand out as peak users
- Usage of energy drinks twice that of shots
- Supermarkets, c-stores and mass are top retail channels
- Seeking “on the go” energy is key, but many other reasons cited
- New flavor is key innovation, sought by four in ten
- Brand allegiance is high, favoring leading suppliers
- Barriers to usage include ingredients, sweetness and safety
Frequency of Consumption
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- Four in ten consume energy drinks
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- Figure 24: Frequency of consumption of energy drinks and energy shots, March 2018
- Those aged 18-34 are key energy drink/shot consumers
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- Figure 25: Frequency of consumption of energy drinks, by age, March 2018
- Males are more likely to be avid, frequent consumers
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- Figure 26: Frequency of consumption of energy drinks, by gender, March 2018
- Parents consume more energy drinks
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- Figure 27: Frequency of consumption of energy drinks, by parental status, March 2018
- Affluent consumers use energy drinks less often
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- Figure 28: Frequency of consumption of energy drinks, by household income, March 2018
Type of Drink
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- Regular energy drinks remain most widely consumed
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- Figure 29: Type of energy drink or shot, March 2018
- Men show high use of a wide range, while women turn to natural drinks
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- Figure 30: Type of energy drink or shot, by age and gender, March 2018
- Upper-income consumers over-index for natural energy drinks
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- Figure 31: Type of energy drink or shot, by household income, March 2018
- Parents use a greater number and range of energy drinks/shots
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- Figure 32: Type of energy drink or shot, by parental status, March 2018
- Non-Hispanics over-index for regular drinks, Hispanics for natural shots
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- Figure 33: Type of energy drink or shot, by Hispanic status, March 2018
Retailer Used
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- Energy drinks purchased at wide range of retailers
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- Figure 34: Retailers used to purchase energy drinks/shots, march 2018
- Men 18-34 most likely to consume energy drinks at bars, restaurants
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- Figure 35: Retailers used to purchase energy drinks/shots, by age/gender, march 2018
- Income shapes retailers favored for energy drink/shot purchase
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- Figure 36: Retailers used to purchase energy drinks/shots, by household income, march 2018
- Parents shop more at mass merchandisers, club stores, internet retailers
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- Figure 37: Retailers used to purchase energy drinks/shots, by parental status, march 2018
Reasons for Usage
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- Energy “on the go” is the top reason for usage
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- Figure 38: Reasons for usage of energy drink/energy shot, March 2017
- Taste and refreshment important for drinks, functional benefits for shots
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- Figure 39: Reasons for usage, by type of product, March 2017
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- Figure 40: Reasons for usage of energy drink, by type of drink/shot, March 2018
- Correspondence analysis shows how reason can shape product choice
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- Figure 41: Correspondence analysis – Motivations for drinking, March 2018
- Those 25-34 cite range of functional benefits to energy drink/shot usage
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- Figure 42: Reasons for usage of energy drink or shot, by age, March 2018
- impacts reasons for usage
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- Figure 43: Reasons for usage of energy shots, by gender, March 2018
- Lower income users turn to energy drinks for wide range of reasons
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- Figure 44: Reasons for usage of energy drink, by household income, March 2018
- Parents’ many reasons for consumption supports their engagement
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- Figure 45: Reasons for usage of energy drink, by parental status, March 2018
- Hispanic origin shapes reason for consumption
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- Figure 46: Reasons for usage of energy drink, by Hispanic origin, March 2018
Attitudes and Interests Related to Energy Drinks/Shots
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- High interest in new flavors and frequent impulse buys
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- Figure 47: attitudes related to energy drinks and shots, March 2018
- Men more likely to report routine usage and stock up on drinks
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- Figure 48: attitudes related to energy drinks and shots, by gender, March 2018
- Impulse buys are widespread among 18-24-year-olds
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- Figure 49: attitudes related to energy drinks and shots, by age, March 2018
- Parents more likely to be routine energy drink users
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- Figure 50: attitudes related to energy drinks and shots, by parental status, March 2018
- Hispanics buy more on impulse, less interested in brand and new flavors
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- Figure 51: attitudes related to energy drinks and shots, by Hispanic origin, March 2018
Behaviors and Preferences in Energy Drinks/shots
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- About half stick with familiar brands and flavors
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- Figure 52: Behaviors and interests related to energy drinks and shots, March 2018
- Age and gender shape a number of behaviors
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- Figure 53: Behaviors and interests related to energy drinks and shots, by age and gender, March 2018
- Affluent users are more likely to consider type of sweetener
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- Figure 54: Behaviors and interests related to energy drinks and shots, by household income, March 2018
- Parents use different flavors and are attentive to sweeteners
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- Figure 55: Behaviors and interests related to energy drinks and shots, by parental status, March 2018
- Hispanics show less concern with brand and sweeteners
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- Figure 56: Behaviors and interests related to energy drinks and shots, by hispanic origin, March 2018
Attitudes Limiting Usage of Energy Drinks and Shots
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- Attitudes suggest challenges, opportunities for market
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- Figure 57: Reasons did not purchase energy drinks and shots, March 2018
- Sweetness, flavors and ingredients limit usage of 18-34-year-old females
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- Figure 58: Reasons did not purchase energy drinks and shots, by age/gender, Part i, March 2018
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- Figure 59: Reasons did not purchase energy drinks and shots, by age/gender, part ii, March 2018
- Income shapes concern with artificial ingredients
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- Figure 60: Reasons did not purchase energy drinks and shots, by household income, March 2018
- Non-parents are more likely to find drinks “aren’t for people like them”
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- Figure 61: Reasons did not purchase energy drinks and shots, by parental status, March 2018
Alternatives to Energy Drinks/shots
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- Coffee tops long list of other beverages used for energy
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- Figure 62: Other drinks used for energy other than energy drinks/ shots, March 2018
- 18-34-year-olds show high usage of beverages beyond coffee, tea, CSDs
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- Figure 63: Other drinks used for energy other than energy drinks/shots, by gender/age, Part I, March 2018
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- Figure 64: Other drinks used for energy other than energy drinks/shots, by gender/age, Part II, March 2018
- Parents use greater number, range of alternative drinks
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- Figure 65: Other drinks used for energy other than energy drinks/shots, by parental status, March 2018
- Hispanics show somewhat higher usage of coffee, tea and sports drinks
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- Figure 66: Other drinks used for energy other than energy drinks/ shots, by Hispanic origin, March 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Direct marketing creative
- Methodology – Correspondence analysis
- Abbreviations and terms
- Abbreviations
Appendix – Market
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- Figure 67: Total US sales and forecast of energy drinks/shots, at inflation-adjusted prices, 2012-22
- Figure 68: Total US sales and forecast of energy drinks, at current prices, 2012-22
- Figure 69: Total US sales and forecast of energy drinks, at inflation-adjusted prices, 2012-22
- Figure 70: Total US sales and forecast of energy shots, at current prices, 2012-22
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- Figure 71: Total US sales and forecast of energy shots, at inflation-adjusted prices, 2012-22
- Figure 72: Total US retail sales of energy drinks, by retail channel, at current prices, 2012-27
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Appendix – Key Players
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- Figure 73: MULO sales of energy drinks by leading companies and brands, rolling 52 weeks 2017 and 2018
- Figure 74: MULO sales energy shots by leading companies and brands, rolling 52 weeks 2017 and 2018
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Appendix – Consumer
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- figure 75: teen consumption of energy drinks/shots, by age, any consumption, Spring 2017
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- figure 76: teen consumption of energy drinks vs. shots, by age, spring 2017
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- figure 77: teen consumption of energy drinks/shots, by age and number of drinks last thirty days, Spring 2017
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