Sports and Energy Drinks - UK - July 2014

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Market size and forecast for the UK sports and energy drinks market, by value, 2009-19
Market drivers
The ageing population and falling number of 20-24s pose threats
Rising sports participation should benefit sports drinks
Concerns over caffeine safety is mounting
The risk of a potential ‘sugar tax’
Companies, brands and innovation
Lucozade and Red Bull remain market leaders
Figure 2: Leading brands’ shares in the UK take-home sports drinks market, by value, 2013/14*
Figure 3: Leading brands’ shares in the UK energy drinks market, by value, 2013/14*
The sports and energy drink market continues to enjoy dynamic product innovation
Naturalness resonates with consumers
Aluminium can become the norm in energy drinks launches
The consumer
Three fifths of people drink sports drinks
Figure 4: Usage of sports and energy drinks, March 2014
Drinking at home is the most popular occasion
Figure 5: Occasions for usage of sports and energy drinks, March 2014
Natural ingredients spark the most interest
Figure 6: Interest in emerging or new sports and energy drink concepts, March 2014
Convincing consumers of the effectiveness of sports drinks is imperative
Figure 7: Attitudes towards sports drinks, March 2014
Clearer information on the ingredients of energy drinks is needed
Figure 8: Attitudes towards energy drinks, March 2014
What we think
ISSUES AND INSIGHTS
All-natural drinks look well-placed to resonate in both sports and energy drinks
The facts
The implications
High protein positioning can help sports drink brands encourage consumers to trade up
The facts
The implications
Clearer information and dilutable products offer ways to tackle consumers’ concerns over safety of energy drinks
The facts
The implications
TREND APPLICATION
Make it Mine
Factory Fear
Mintel Future: Brand Intervention
MARKET DRIVERS
Key points
The ageing population and falling number of 20-24s pose threats
Figure 9: Projected trends in the age structure of the UK population, 2014-19
Ageing population: the challenges and opportunities for sports and energy drinks
25-34s becomes the key growth engine
The growth in 10-14s will provide another boost to key users post-2019
Rising sports participation boosts consumers’ sports drinks spending
Figure 10: Participation in moderate intensity sport, at least one 30-minute session per week, England 2005/06-2012/13*
Figure 11: Consumer expenditure on participation in sports, 2008-18
Regulation on caffeine tightens
EFSA reviews safety of caffeine
FSA required high caffeine content to be labelled
Media coverage highlights caffeine bans by schools and age restrictions
The risk of a potential ‘sugar tax’
Various bodies raise concerns over sugar intake
Sports and energy drink brands look to reduce sugar
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
The sports and energy drink market continues to enjoy dynamic NPD
Figure 12: New product launches in the UK sports and energy drink market, 2009-14
Small packs gain ground
Further steps needed to stand out on convenience
Figure 13: Resealable OK energy drink from Switzerland, Q4 2013
Two in five launches are new products
Figure 14: Tropicana Energy launched in the UK, Q4 2014
Ethical claims become increasingly common
Figure 15: Share of new products in the UK sports and energy drink market featuring selected claims, 2010-14
Naturalness resonates with consumers
Figure 16: Energy drinks positioned as using all-natural ingredients, Q2 2014
Aluminium can becomes the norm in energy drinks launches
Figure 17: New products launches in the UK sports and energy drink market, by packaging materials, 2009-14
Figure 18: New product launches in the UK sports and energy drink market, by packaging type, 2009-14
MARKET SIZE AND FORECAST
Key points
The growth of the market is slowing
Figure 19: UK value and volume sales of sports and energy drinks, 2009-19
The market’s key growth driver is losing momentum
Figure 20: Market size and forecast for the UK sports and energy drinks market, by value, 2009-19
Figure 21: Market size and forecast for the UK sports and energy drinks market, by volume, 2009-19
NPD drives energy drink segment to grow
Figure 22: UK value and volume sales of energy drinks, 2009-19
Figure 23: Value sales and forecast for the UK energy drinks market, 2009-19
Sports drink market is shrinking
Figure 24: UK value and volume sales of sports drinks, 2009-19
Figure 25: Value sales and forecast for the UK sports drinks market, 2009-19
Forecast methodology
SEGMENT PERFORMANCE
Key points
Energy drinks are gaining market share
Figure 26: UK retail value sales of sports and energy drinks, by type, 2011-14
Sports drinks are struggling to win over consumers
MARKET SHARE
Key points
Sports drink market is highly concentrated
Figure 27: Leading manufacturers’ shares in the UK take-home sports drinks market, by value, 2013/14*
Figure 28: Leading brands’ sales and shares in the UK take-home sports drinks market, by value and volume 2012/13-2013/14
Figure 29: Leading manufacturers’ sales and shares in the UK take-home sports drinks market, by value and volume, 2012/13-2013/14
Two leading operators capture more than half of the energy drink market
Figure 30: Leading manufacturers’ share in the UK energy drinks market, by value, 2013/14*
Figure 31: Leading brands’ sales and shares in the UK take-home energy drinks market, by value, 2012/13-2013/14
Figure 32: Leading brands’ sales and shares in the UK take-home energy drinks market, by volume, 2012/13-2013/14
BRANDS AND COMPANIES
AG Barr
Background
Product range and innovation
Recent activity and promotion
Britvic/PepsiCo
Background
Product range and innovation
Recent activity and promotion
Coca-Cola
Background
Product range and innovation
Recent activity and promotion
Red Bull
Background
Product range and innovation
Recent activity and promotion
Suntory
Background
Product range and innovation
Recent activity and promotion
BRAND ADVERTISING, PERCEPTIONS AND SOCIAL MEDIA
Key points
 BRAND ADVERTISING
Ad spend-to-sales ratio falls substantially
Figure 33: Total above-the-line advertising expenditure in the sports and energy drinks market, 2010-14*
Energy drinks enjoy higher share of ad support than sports drinks
Figure 34: Total above-the-line advertising expenditure in the sports and energy drinks market, by segment, 2010-14*
Suntory remains the largest spender on adverts
Figure 35: Above-the-line advertising expenditure in the sports and energy drinks market, by leading advertisers, 2013
 BRAND PERCEPTIONS
Key brand metrics
Figure 36: Sports and energy drink brand key metrics, February 2014
Brand map
Figure 37: Attitudes towards and usage of brands in the sports and energy drink sector, February 2014
Correspondence analysis
Brand attitudes
Figure 38: Attitudes, by sports and energy drink brand, February 2014
Brand personality
Figure 39: Sports and energy drink brand personality – Macro image, February 2014
Figure 40: Sports and energy drink brand personality – Micro image, February 2014
Brand usage
Figure 41: Sports and energy drink brand usage, February 2014
Brand experience
Figure 42: Sports and energy drink brand experience, February 2014
 SOCIAL MEDIA AND ONLINE BUZZ
Social media metrics
Figure 43: Social media metrics of selected sports and energy drink brands, June 2014
Online mentions
Figure 44: Online mentions of selected sports and energy drink brands, 26 May 2013-31 May 2014
Topics of discussion
Figure 45: Topics of discussion around selected sports and energy drink brands, 26 May 2013-31 May 2014
Where discussion occurs
Figure 46: Where people talk about sports and energy drinks brands, 26 May 2013-31 May 2014
Analysis by brand
Red Bull
Figure 47: Topic cloud around mentions of Red Bull, 26 May 2013-31 May 2014
Figure 48: Topic cloud around mentions of Red Bull, excluding mentions around Formula One. 26 May 2013-31 May 2014
Lucozade
Figure 49: Topic cloud around mentions of Lucozade, 26 May 2013-31 May 2014
Figure 50: Share of conversation for different Lucozade flavours, 26 May 2013-31 May 2014
Figure 51: Share of Lucozade conversation that Pink Lemonade and Orange flavours earn, by week, 26 May 2013-31 May 2014
Figure 52: Share of conversation that new Lucozade flavours have achieved, by month, 1 January 2012-31 May 2014
Monster
Figure 53: Topic cloud around mentions of Monster, 26 May 2013-31 May 2014
Figure 54: Topic cloud around mentions of Monster in relation to drink, 26 May 2013-31 May 2014
Relentless
Figure 55: Topic cloud around mentions of Relentless, 26 May 2013-31 May 2014
Powerade
Figure 56: Topic cloud around mentions of Powerade, 26 May 2013-31 May 2014
CONSUMER – FREQUENCY OF USAGE OF SPORTS AND ENERGY DRINKS
Key points
Three in five people drinks sports drinks
Figure 57: Usage of sports and energy drinks, March 2014
Men remain more likely to drink sports and energy drinks
Figure 58: Usage of sports and energy drinks, by gender, March 2014
Usage frequency remains low
Figure 59: Frequency of usage of sports and energy drinks, by type, March 2014
CONSUMER – USAGE OCCASIONS
Key points
Drinking at home is the most popular occasion
Figure 60: Occasions for usage of sports and energy drinks, March 2014
Sports usage remains low
Usage in mixed drinks boosts energy drinks
Older consumers are more likely to drink sports and energy drinks at home
Figure 61: Usage of sports and energy drinks at home, by age, March 2014
Figure 62: Tropicana energy launched in the UK, Q4 2014
Energy drink usage occasions remain few
Figure 63: Repertoire of usage occasions of energy drinks, March 2014
Figure 64: Interests in ‘energy drinks made with all-natural ingredients’, by age, March 2014
Figure 65: Energy drinks using all-natural ingredients, Q2 2014
CONSUMER – INTEREST IN PRODUCT CONCEPTS
Key points
Natural ingredients spark the most interest
Figure 66: Interest in emerging or new sports and energy drink concepts, March 2014
All-natural sports or energy drinks of interest to half of adults
Dilute-to-taste appeals to one in four
Sports drinks with high protein could offer a platform for premiumisation
Figure 67: Sports drink users’ interest in high protein sports drinks, by income, March 2014
Figure 68: Interest in emerging or new sports and energy drink concepts among sport drink users, by drinking occasions, March 2014
Natural ingredients appeal to non-users of sports and energy drinks
Figure 69: Interest in emerging or new sports and energy drink concepts among non-users, March 2014
Dilution looks well-placed to win over non-users
CONSUMER – ATTITUDES TOWARDS SPORTS AND ENERGY DRINKS
Key points
Convincing consumers of the effectiveness of sports drinks is imperative
Figure 70: Attitudes towards sports drinks, March 2014
Further guidance needed on choice of drink
Figure 71: Flavoured liquid water enhancer, MiO Sport, Q2 2014
Media coverage sparks concerns about sports drinks
Few people see sports drinks as being for athletes only
The distrust in the effectiveness of sports drinks peaks among ABC1s
Figure 72: Agreement with the statement “It’s hard to tell if sports drinks actually work”, by usage of sports drinks, March 2014
Clearer information on the ingredients of energy drinks is needed
Figure 73: Attitudes towards energy drinks, March 2014
Half of users see ingredients as more important than brands
‘Light’ energy drinks show potential
Adverse media coverage affects the core users of energy drinks
Figure 74: Energy drink users’ agreement with the statement ‘I’m worried about drinking energy drinks due to stories in the media’, by demographics, March 2014
CONSUMER – ATTITUDES TOWARDS FEELING TIRED
Key points
Getting more out of the day can offer a powerful proposition for sports and energy drinks
Figure 75: Attitudes towards feeling tired, March 2014
Energy drinks can tap into an emotional proposition
APPENDIX – MARKET SIZE AND FORECAST
Figure 76: Best- and worst-case forecasts for the sports and energy drinks market, by value, 2014-19
Figure 77: Best- and worst-case forecasts for the sports and energy drinks market, by volume, 2014-19
Figure 78: Best- and worst-case forecasts for the energy drinks market, by value, 2014-19
Figure 79: Best- and worst-case forecasts for the energy drinks market, by volume, 2014-19
Figure 80: Best- and worst-case forecasts for the sports drinks market, by value, 2014-19
Figure 81: Best- and worst-case forecasts for the sports drinks market, by volume, 2014-19
APPENDIX – BRAND ADVERTISING, PERCEPTIONS AND SOCIAL MEDIA
Figure 82: Brand usage, February 2014
Figure 83: Brand commitment, February 2014
Figure 84: Brand diversity, February 2014
Figure 85: Brand satisfaction, February 2014
Figure 86: Brand recommendation, February 2014
Figure 87: Brand attitude, February 2014
Figure 88: Brand image – Macro image, February 2014
Figure 89: Brand image – Micro image, February 2014
Figure 90: Share of conversation of selected sports and energy drink brands, 26 May 2013 – 31 May 2014
Figure 91: Topics of discussion around selected sports and energy drink brands, 26 May 2013-31 May 2014
APPENDIX – CONSUMER – FREQUENCY OF USAGE OF SPORTS AND ENERGY DRINKS
Figure 92: Frequency of usage of sports and energy drinks, March 2014
Figure 93: Usage of any sports drinks, by demographics, March 2014
Figure 94: Usage of any energy drinks, by demographics, March 2014
Figure 95: Usage of any energy drinks or shots, by demographics, March 2014
Figure 96: Usage of sports drinks and not energy drinks or shots, by demographics, March 2014
Figure 97: Frequency of usage of branded sports drinks, by demographics, March 2014
Figure 98: Frequency of usage of own-label sports drinks, by demographics, March 2014
Figure 99: Frequency of usage of branded energy drinks, by demographics, March 2014
Figure 100: Frequency of usage of own-label energy drinks, by demographics, March 2014
Figure 101: Frequency of usage of energy shots, by demographics, March 2014
APPENDIX – CONSUMER – USAGE OCCASIONS
Figure 102: Occasions for usage of sports and energy drinks, March 2014
Figure 103: Most popular occasions for usage of sports drinks, by demographics, March 2014
Figure 104: Next most popular occasions for usage of sports drinks, by demographics, March 2014
Figure 105: Other occasions for usage of sports drinks, by demographics, March 2014
Figure 106: Occasions for usage of energy drinks, by demographics, March 2014
APPENDIX – CONSUMER – INTEREST IN PRODUCT CONCEPTS
Figure 107: Interest in emerging or new sports and energy drink concepts, March 2014
Figure 108: Sports drink users' interest in emerging or new sports and energy drink concepts, March 2014
Figure 109: Energy drink users' interest in emerging or new sports and energy drink concepts, March 2014
Figure 110: Interest in emerging or new sports and energy drink concepts among non-users of sports drinks, March 2014
Figure 111: Interest in emerging or new sports and energy drink concepts among non-users of energy drinks, March 2014
Figure 112: Most popular emerging or new sports drink concepts, by demographics, March 2014
Figure 113: Next most popular emerging or new sports drink concepts, by demographics, March 2014
Figure 114: Most popular emerging or new energy drink concepts, by demographics, March 2014
Figure 115: Next most popular emerging or new energy drink concepts, by demographics, March 2014
Figure 116: Most popular emerging or new sports drink concepts among sports drink users, by demographics, March 2014
Figure 117: Next most popular emerging or new sports drink concepts among sports drink users, by demographics, March 2014
Figure 118: Most popular emerging or new energy drink concepts among energy drink users, by demographics, March 2014
Figure 119: Next most popular emerging or new energy drink concepts among energy drink users, by demographics, March 2014
Figure 120: Most popular emerging or new sports drink concepts among non-users of sports drinks, by demographics, March 2014
Figure 121: Next most popular emerging or new sports drink concepts among non-users of sports drinks, by demographics, March 2014
Figure 122: Most popular emerging or new energy drink concepts among non-users of energy drinks, by demographics, March 2014
Figure 123: Next most popular emerging or new energy drink concepts among non-users of energy drinks, by demographics, March 2014
Figure 124: Interest in emerging or new sports and energy drink concepts among sports drink users, by usage occasions of sports drinks, March 2014
Figure 125: Interest in emerging or new sports and energy drink concepts among energy drink users, by usage occasions of energy drinks, March 2014
APPENDIX – CONSUMER – ATTITUDES TOWARDS SPORTS AND ENERGY DRINKS
Figure 126: Attitudes towards sports and energy drinks, March 2014
Figure 127: Sports drink users' attitudes towards sports and energy drinks, March 2014
Figure 128: Energy drink users' attitudes towards sports and energy drinks, March 2014
Figure 129: Attitudes towards sports and energy drinks among non-users of sports drinks, March 2014
Figure 130: Attitudes towards sports and energy drinks among non-users of energy drinks, March 2014
Figure 131: Agreement with the statement ‘I would like clearer information on what each ingredient in sports drinks do’, by demographics, March 2014
Figure 132: Agreement with the statement ‘It’s hard to tell if sports drinks actually work’, by demographics, March 2014
Figure 133: Agreement with the statement ‘It’s hard to know which sports drinks are right for me’, by demographics, March 2014
Figure 134: Agreement with the statement ‘I’m put off drinking sports drinks due to stories in the media ’, by demographics, March 2014
Figure 135: Agreement with the statement ‘Sports drinks are beneficial to athletes only’, by demographics, March 2014
Figure 136: Agreement with the statement ‘I would like clearer information on what the different ingredients in energy drinks do’, by demographics, March 2014
Figure 137: Agreement with the statement ‘It’s hard to know how much energy drinks you can safely drink per day’, by demographics, March 2014
Figure 138: Agreement with the statement ‘Supermarkets imposing an age limit on purchase of energy drinks would be a good thing’, by demographics, March 2014
Figure 139: Agreement with the statement ‘I would like to be able to control how strong an energy drink is’, by demographics, March 2014
Figure 140: Agreement with the statement ‘The brand doesn’t matter in energy drinks, just the effective ingredients’, by demographics, March 2014
Figure 141: Agreement with the statement ‘Diluting an energy drink with water is a good way to stop it being too strong’, by demographics, March 2014
Figure 142: Agreement with the statement ‘I’m worried about drinking energy drinks due to stories in the media’, by demographics, March 2014
Sports drinks users’ attitudes towards sports drinks
Figure 143: Agreement with the statement ‘I would like clearer information on what each ingredient in sports drinks do’ among sports drink users, by demographics, March 2014
Figure 144: Agreement with the statement ‘It’s hard to know which sports drinks are right for me’ among sports drink users, by demographics, March 2014
Figure 145: Agreement with the statement ‘It’s hard to tell if sports drinks actually work’ among sports drink users, by demographics, March 2014
Figure 146: Agreement with the statement ‘I’m put off drinking sports drinks due to stories in the media’ among sports drink users, by demographics, March 2014
Figure 147: Agreement with the statement ‘Sports drinks are beneficial to athletes only’ among sports drink users, by demographics, March 2014
Energy drink users’ attitudes towards energy drinks
Figure 148: Agreement with the statement ‘I would like clearer information on what the different ingredients in energy drinks do’ among energy drink users, by demographics, March 2014
Figure 149: Agreement with the statement ‘It’s hard to know how much energy drinks you can safely drink per day’ among energy drink users, by demographics, March 2014
Figure 150: Agreement with the statement ‘I would like to be able to control how strong an energy drink is’ among energy drink users, by demographics, March 2014
Figure 151: Agreement with the statement ‘Supermarkets imposing an age limit on purchase of energy drinks would be a good thing’ among energy drink users, by demographics, March 2014
Figure 152: Agreement with the statement ‘The brand doesn’t matter in energy drinks, just the effective ingredients’ among energy drink users, by demographics, March 2014
Figure 153: Agreement with the statement ‘Diluting an energy drink with water is a good way to stop it being too strong’ among energy drink users, by demographics, March 2014
Figure 154: Agreement with the statement ‘I’m worried about drinking energy drinks due to stories in the media’ among energy drink users, by demographics, March 2014
Non-users’ attitudes towards sports drinks
Figure 155: Agreement with the statement ‘It’s hard to tell if sports drinks actually work’ among non-users of sports drinks, by demographics, March 2014
Figure 156: Agreement with the statement ‘I would like clearer information on what each ingredient in sports drinks do’ among non-users of sports drinks, by demographics, March 2014
Figure 157: Agreement with the statement ‘It’s hard to know which sports drinks are right for me’ among non-users of sports drinks, by demographics, March 2014
Figure 158: Agreement with the statement ‘I’m put off drinking sports drinks due to stories in the media’ among non-users of sports drinks, by demographics, March 2014
Figure 159: Agreement with the statement ‘Sports drinks are beneficial to athletes only’ among non-users of sports drinks, by demographics, March 2014
Non-users’ attitudes towards energy drinks
Figure 160: Agreement with the statement ‘I would like clearer information on what the different ingredients in energy drinks do’ among non-users of energy drinks, by demographics, March 2014
Figure 161: Agreement with the statement ‘It’s hard to know how much energy drinks you can safely drink per day’ among non-users of energy drinks, by demographics, March 2014
Figure 162: Agreement with the statement ‘Supermarkets imposing an age limit on purchase of energy drinks would be a good thing’ among non-users of energy drinks, by demographics, March 2014
Figure 163: Agreement with the statement ‘The brand doesn’t matter in energy drinks, just the effective ingredients’ among non-users of energy drinks, by demographics, March 2014
Figure 164: Agreement with the statement ‘I would like to be able to control how strong an energy drink is’ among non-users of energy drinks, by demographics, March 2014
Figure 165: Agreement with the statement ‘I’m worried about drinking energy drinks due to stories in the media’ among non-users of energy drinks, by demographics, March 2014
Figure 166: Agreement with the statement ‘Diluting an energy drink with water is a good way to stop it being too strong’ among non-users of energy drinks, by demographics, March 2014
APPENDIX – CONSUMER – ATTITUDES TOWARDS FEELING TIRED
Figure 167: Attitudes towards feeling tired, March 2014
Figure 168: Agreement with the statement ‘I often feel tired’, by demographics, March 2014
Figure 169: Agreement with the statement ‘Feeling tired puts me in a bad mood’, by demographics, March 2014
Figure 170: Agreement with the statement ‘I get irritated easily when I’m tired’, by demographics, March 2014
Figure 171: Agreement with the statement ‘Feeling tired makes me feel less confident’, by demographics, March 2014
Figure 172: Agreement with the statement ‘I don’t feel like spending time with others when I’m tired’, by demographics, March 2014
Figure 173: Agreement with the statement ‘Activities I normally enjoy aren’t as much fun when I’m tired’, by demographics, March 2014
Figure 174: Agreement with the statement ‘I get more out of my day when I feel more alert’, by demographics, March 2014
Figure 175: Agreement with the statement ‘I’m more fun to be around when I’m feeling energetic’, by demographics, March 2014
Figure 176: Agreement with the statement ‘I hate feeling low on energy’, by demographics, March 2014