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Energy Drinks: Inc Impact of COVID-19 - US - May 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
EXECUTIVE SUMMARY 
Market overview
Figure 1: Total US retail sales and forecast of energy drinks and shots, by segment, at current prices, 2014-24
Impact of COVID-19 on energy drinks and energy shots
Figure 2: Short-, medium- and long-term impact of COVID-19 on energy drinks and energy shots, April 2020
Top takeaways
The issues
Negative perceptions of energy drinks linger
Figure 3: Reasons for not drinking energy drinks, by age and gender, February 2020
Energy drinks are not essential for medium- and low-frequency consumers
Figure 4: Energy drink attitudes, by energy drink consumption frequency, February 2020
The opportunities
Fitness energy drinks capture high-frequency consumers’ interest
Figure 5: Benefits of fitness energy drinks over traditional energy drinks, by energy drink consumption frequency, February 2020
Big beverage companies can lift the market higher
THE IMPACT OF COVID-19 ON ENERGY DRINKS
Figure 6: Short, medium and long term impact of COVID-19 on energy drinks and energy shots, May 2020
Opportunities and Threats
Impulsive nature and limited needstate will hinder energy drink sales
Figure 7: Energy Drink attitudes and Behaviors, February 2020
Interplay between Budget and Convenience will shape the market
Impact of COVID-19 on the energy drink market
The sales streak will slow, but rebound
Figure 8: Total US retail sales and forecast of energy drinks and shots, by segment, at current prices, 2014-24
How the crisis will affect energy drinks’ key consumer segments
Younger men define the energy drink market
Figure 9: Unemployment rates by age and gender, October 2019-April 2020, seasonally adjusted
How a COVID-19 recession will reshape the energy drinks industry
A look in the rear view mirror suggests slowed sales followed by rebound
Figure 8: US retail sales of energy drinks and shots, at current prices, 2008-12
COVID-19: US context
THE MARKET – WHAT YOU NEED TO KNOW
Strong sales will be tempered by COVID-19
Energy drink brands face strong competition
Energy drinks can benefit from gaming’s growth
MARKET SIZE AND FORECAST
Market growth continues
Figure 10: Total US retail sales and forecast of energy drinks and shots, at current prices, 2014-24
MARKET BREAKDOWN
Drinks dominate, shots stagnate
Figure 11: Total US retail sales and forecast of energy drinks and shots, by segment, at current prices, 2014-24
MARKET PERSPECTIVE
RTD coffee innovates, bringing new threats to energy drinks
Line between energy drinks and performance drinks blurs entirely
MARKET FACTORS 
US unemployment reaches record highs
Figure 12: Total US retail sales and forecast of energy drinks and shots, by segment, at current prices, 2014-24
Figure 13: Monthly unemployment rate, May 2020
Growing gaming industry offers new opportunities
Figure 14: Gaming revenue, global vs US, 2015-19
KEY PLAYERS – WHAT YOU NEED TO KNOW 
The largest beverage companies break into energy drinks
Fitness drinks thriving, yet in a capped space
Shots struggles persist
COMPANY AND BRAND SALES OF ENERGY DRINKS AND ENERGY SHOTS
The big brands reign supreme; beverage giants look to gain a share of the market
Figure 15: Multi-outlet sales of energy drinks and shots, by leading companies, rolling 52 weeks 2019 and 2020
WHAT’S WORKING
Coca-Cola Energy could be a game-changing product
Figure 16: Purchase intent score – Coca-Cola Energy vs all energy drinks, launched January 2017 to March 2020
Figure 17: Purchase patterns – Coca-Cola Energy vs all energy drinks, launched January 2017 to March 2020
Figure 18: Attribute scores – Coca-Cola Energy vs all energy drinks, launched January 2017 to March 2020
Energy drinks go healthy at the expense of clean labels
Figure 19: Energy drink product claims by year, 2016-2019
Fitness drinks thrive but face skepticism among general consumers
Figure 20: Purchase intent score – fitness energy drinks vs all energy drinks, launched January 2017 to March 2020
Figure 21: Attribute scores – fitness energy drinks vs all energy drinks, launched January 2017 to March 2020
Feel the burn
WHAT’S STRUGGLING
Traditional energy shots are dead but the shot format lives on
WHAT’S NEXT
New energy drinks satisfy consumer drivers
Mintel Trend Drivers and Pillars
Energy drinks to watch
Eboost
Trend Drivers: Wellbeing, Experience and Value
THE CONSUMER – WHAT YOU NEED TO KNOW 
A relatively small but dedicated consumer base
Energy drinks face high hurdles attracting new consumers
Category users have positive perceptions of fitness energy drinks
Consumers lack caffeine knowledge
ENERGY DRINK CONSUMPTION
More than half of consumers don’t drink energy drinks
Figure 22: Energy drink consumption, February 2020
Figure 23: Energy drink consumption, by gender and age, February 2020
Fitness energy drinks are appealing to more casual energy drink consumers
Figure 24: Energy drink consumption by consumption frequency, February 2020
ENERGY DRINK CONSUMPTION FREQUENCY
Young men continue to drive most of the market
Figure 25: Energy drink consumption frequency, February 2020
Figure 26: Energy drink consumption frequency, by gender and age, February 2020
REASONS FOR NOT DRINKING ENERGY DRINKS
Taste and caffeine concerns keep consumers out of the market
Figure 27: Reasons for not drinking energy drinks, February 2020
Figure 28: Reasons for not drinking energy drinks, by age and gender, February 2020
CHANGE IN ENERGY DRINK CONSUMPTION
Fitness energy drinks experience the highest uptick in consumption
Figure 29: Changes in energy drink consumption, February 2020
REASONS FOR BUYING FITNESS ENERGY DRINKS
Fitness energy drinks garner high praise, but will it last?
Figure 30: Benefits of fitness energy drinks over traditional energy drinks, February 2020
Figure 31: Benefits of fitness energy drinks over traditional energy drinks, by gender and age, February 2020
Fitness energy drinks tick all the right boxes for high-frequency drinkers
Figure 32: Benefits of fitness energy drinks over traditional energy drinks, by energy drink consumption frequency, February 2020
IDEAL ENERGY DRINK: PACKAGING SIZE
Large format packaging can provide high frequency consumers value
Figure 33: Ideal energy drink packaging size, February 2020
Figure 34: Ideal energy drink packaging size, by energy drink consumption frequency, February 2020
IDEAL ENERGY DRINK: CAFFEINE CONTENT
Stated interest in caffeine does not align with market trends
Figure 35: Ideal energy drink caffeine content, February 2020
Figure 36: Ideal energy drink caffeine content, February 2020
IDEAL ENERGY DRINK: BENEFITS
Consumers want a highly functional energy drink
Figure 37: Ideal energy drink additional benefits, February 2020
Figure 38: TURF analysis – ideal energy drink additional benefits, February 2020
Figure 39: Ideal energy drink additional benefits, by energy drink type, February 2020
A heart-healthy, probiotic energy drink is a whitespace opportunity
Figure 40: Ideal energy drink additional benefits, by age, gender and energy drink consumption frequency, February 2020
ENERGY DRINK ATTITUDES
One-off purchases hinders category growth
Figure 41: Energy drink attitudes, February 2020
Figure 42: Energy drink attitudes, by energy drink consumption frequency, February 2020
Energy drinks are a utility beverage for Gen Z
Figure 43: Energy drink attitudes, by generation, February 2020
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
APPENDIX – THE MARKET 
Figure 44: Total US retail sales and forecast of energy drinks at inflation-adjusted prices, 2014-24
Figure 45: Total US retail sales and forecast of energy shots at inflation-adjusted prices, 2014-24
APPENDIX – RETAIL CHANNELS  
Figure 46: Total US retail sales of energy drinks and shots, by channel, at current prices, 2014-19
Figure 47: Total US retail sales of energy drinks and shots, by channel, at current prices, 2017 and 2019
APPENDIX – KEY PLAYERS 
Figure 48: Multi-outlet sales of energy drinks, by leading companies and brands, rolling 52 weeks 2019 and 2020
Figure 49: Multi-outlet sales of energy shots, by leading companies and brands, rolling 52 weeks 2019 and 2020

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