Energy Drinks - US - August 2014

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Overview
The market
Figure 1: Total US sales and fan chart forecast of energy drinks and shots market, at current prices, 2009-19
Segment performance
Figure 2: Total US Retail sales of Energy Drinks and Energy Shots, at current prices, 2009-19
Retail
Figure 3: Total US retail sales of energy drinks and shots, by channel, at current prices, 2012-14
Key players
Figure 4: MULO sales of energy drinks and shots at retail, by leading companies, 52 weeks ending May 18,  2014
Young adults, men top consumers of energy drinks and shots
Figure 5: Purchasing habits for energy drinks and shots, by gender and age, June 2014
Consumers drink energy drinks for energy, beverage replacement
Figure 6: Reasons for drinking energy drinks, June 2014
Energy shots are a convenient energy boost
Figure 7: Reasons for drinking energy shot, June 2014
Health concerns are top reason for drinking less energy drinks
Figure 8: Reasons for drinking less energy drinks, June 2014
Health concerns also affect energy shot consumption
Figure 9: Reasons for drinking less energy shots, June 2014
Safety and ingredient concerns rank highly with consumers
Figure 10: Agreement with attitudes and behaviors toward energy drinks/energy shots, June 2014
What we think
ISSUES AND INSIGHTS
What competes with the category that keeps it from being a more frequent beverage choice?
The issues
Insight: Consumer concerns, interests offer avenues for innovation
Will consumer concerns force labeling changes?
The issues
Insight: Strategic marketing partnerships could help to build trust
Is there a positive way to address energy drink consumption by kids and teens?
The issues
Insight: Kid-friendly energy drinks may help alleviate parent concerns
TREND APPLICATIONS
Trend: Prove It
Trend: Factory Fear
Trend: Minimize Me
MARKET SIZE AND FORECAST
Key points
Sales and forecast of energy drinks and shots
Figure 11: Total US Retail sales of energy drinks and shots, at current prices, 2009-19
Figure 12: Total US retail sales of energy drinks and shots, at inflation-adjusted prices, 2009-19
Strong future forecasted for energy drinks and shots category
Figure 13: Total US sales and fan chart forecast of energy drinks and shots market, at current prices, 2009-19
Fan chart forecast
MARKET DRIVERS
Key points
Greater rate of employment encourages greater need for energy boost
Figure 14: US unemployment rate and underemployment rate, January 2007 to June 2014
Figure 15: Purchasing habits for energy drinks, by employment, June 2014
Figure 16: Purchasing habits for energy shots, by employment, June 2014
Multicultural interest assists category growth
Figure 17: US population by race and Hispanic origin, 2009-19
Households with children are declining
Figure 18: US households, by presence of own children, 2003-13
Figure 19: Personal consumption of energy drinks by brand, November 2008-December 2013
COMPETITIVE CONTEXT
Other food and beverage categories offer energy alternatives
Figure 20: Food launches claiming energy, August 2014
Figure 21: Beverages and foods consumed for energy, May 2013
SEGMENT PERFORMANCE
Key points
Energy drinks see healthy growth, energy shots struggle
Sales of energy drinks and shots, by segment
Figure 22: Total US retail sales of energy drinks and shots, by segment, at current prices, 2012 and 2014
Energy drinks fuel category growth
Figure 23: Total US retail sales of energy drinks, at current prices, 2009-19
Figure 24: Total US retail sales of energy drinks, at inflation-adjusted prices, 2009-19
Figure 25: Personal consumption of energy drinks by volume (mean consumption), February 2008-March 2014
Energy shots fall short in estimated 2014
Figure 26: Total US Retail sales of Energy Shots, at current prices, 2009-19
Figure 27: Total US retail sales of energy shots, at inflation-adjusted prices, 2009-19
RETAIL CHANNELS
Key points
Other retail channel leads market share
Figure 28: Total US retail sales of energy drinks and shots, by channel, at current prices, 2012-14
Strong sales falter in 2013, begin to rebound in estimated 2014
Figure 29: Total US retail sales of energy drinks and shots, by channel, at current prices, 2012-14
LEADING COMPANIES
Key points
Monster catching up to Red Bull in MULO sales
Manufacturer sales of energy drink and shot market
Figure 30: MULO sales of energy drinks and shots at retail, by leading companies, rolling 52 weeks 2013 and 2014
Consumers most likely to consume Monster Energy
Figure 31: Personal consumption of energy drinks by brand, by gender, January 2013-March 2014
Figure 32: Personal consumption of energy drinks by brand, by age, January 2013-March 2014
BRAND SHARE – ENERGY DRINKS
Key points
Red Bull leads energy drink category
Figure 33: Red Bull, “Word of Red Bull Commercial 2014,” March 2, 2014
Monster closes gap between it and Red Bull
Rockstar Punch sees growth, while top brands stall
Coca-Cola energy drinks sees success
Figure 34: NOS, “NOS Energy Drink Commercial,” April 28, 2014
Pepsi, private label see large losses
Manufacturer sales of energy drinks
Figure 35: MULO sales of energy drinks at retail, by leading companies, rolling 52 weeks 2013 and 2014
BRAND SHARE – ENERGY SHOTS
Key points
Living Essentials leads segment but loses sales in 2014
Private label, other brands decline in sales, market share
Manufacturer sales of energy shots
Figure 36: MULO sales of energy drink shots at retail, by leading companies, rolling 52 weeks 2013 and 2014
INNOVATIONS AND INNOVATORS
Natural interests
Additional functionality
New packaging
CONSUMPTION HABITS FOR ENERGY DRINKS
Key points
Young adult men remain top consumers of energy drinks
Figure 37: Purchasing habits for energy drinks, by gender and age, June 2014
Figure 38: Personal consumption of energy drinks by volume (mean consumption), by gender, January 2013-March 2014
Figure 39: Personal consumption of energy drinks by volume (mean consumption), by age, January 2013-March 2014
Households with children most likely to consume energy drinks
Figure 40: Purchasing habits for energy drinks, by presence of children in household, June 2014
Hispanics, “other” races top consumers of energy drinks
Figure 41: Purchasing habits for energy drinks, by race and Hispanic origin, June 2014
FourSquare, SnapChat most popular social media site with energy drink users
Figure 42: Purchasing habits for energy drinks, by visits social media websites at least once per day, June 2014
Figure 43: Purchasing habits for energy drinks, by visits social media websites at least once per day, June 2014
Figure 44: Purchasing habits for energy drinks, by visits social media websites at least once per day, June 2014
CONSUMPTION HABITS FOR ENERGY SHOTS
Key points
Young men top consumers of energy shots
Figure 45: Purchasing habits for energy shots, by gender and age, June 2014
Households with children significantly more likely to drink energy shots
Figure 46: Purchasing habits for energy shots, by presence of children in household, June 2014
Hispanics, “other” races top energy shot consumers
Figure 47: Purchasing habits for energy shots, by race and Hispanic origin, June 2014
FourSquare, Flickr most visited by energy shot consumers
Figure 48: Purchasing habits for energy shots, by visits social media websites at least once per day, June 2014
Figure 49: Purchasing habits for energy shots, by visits social media websites at least once per day, June 2014
Figure 50: Purchasing habits for energy shots, by visits social media websites at least once per day, June 2014
OCCASIONS FOR ENERGY DRINK/SHOT CONSUMPTION
Key points
Afternoon most popular time of day for energy drink consumption
Figure 51: Time of day for consuming energy drinks/energy shots, by age, June 2014
Younger consumers most likely to drink energy drinks with a meal
Figure 52: Occasion for consuming energy drinks/energy shots, by age, June 2014
Energy drinks, shots most consumed as a snack
Figure 53: Occasion for consuming energy drinks/energy shots, by employment, June 2014
LOCATION PREFERENCES
At-home, on-the-go top locations for consumption
Figure 54: Location for consuming energy drinks/energy shots, by age, June 2014
REASONS FOR DRINKING ENERGY DRINKS
Key points
Respondents drink for pick-me-up, drink replacement
Figure 55: Reasons for drinking energy drinks, by age, June 2014
REASONS FOR DRINKING ENERGY SHOTS
Key points
Energy shots most used for pick-me-up, on-the-go convenience
Figure 56: Reasons for drinking energy shot, by age, June 2014
REASONS FOR DRINKING LESS ENERGY DRINKS AND ENERGY SHOTS
Key points
Consumers still concerned with category health, also ingredient safety
Figure 57: Reasons for drinking less energy drinks, June 2014
Energy shots also subject to health, ingredient safety concerns
Figure 58: Reasons for drinking less energy shots, June 2014
Launches for organic, natural, caffeine-free, low/no/reduced sugars on the rise
Figure 59: Reasons for drinking less energy shots, June 2014
PACKAGING, FLAVOR, PRODUCT PREFERENCES
Key points
Ingredient innovation continues, packaging innovation can better cater to core markets
Figure 60: Preferences of energy drinks/energy shots, by gender and age, June 2014
Cultural flavors, packaging caters to Hispanic consumers
Figure 61: Preferences of energy drinks/energy shots, by Hispanic origin, June 2014
ATTITUDES AND BEHAVIORS TOWARD ENERGY DRINKS AND ENERGY SHOTS
Key points
Consumers seek variety in energy drink/shots: sugar-free, diet most popular
Figure 62: Agreement with attitudes and behaviors toward energy drinks/energy shots, by gender and age, June 2014
Hispanics prefer health, benefits from their energy drinks/shots
Figure 63: Agreement with attitudes and behaviors toward energy drinks/energy shots, by Hispanic origin, June 2014
Safety concerns for child energy drink consumption could fuel new drink market for kids, teens
Figure 64: Agreement with attitudes and behaviors toward energy drinks/energy shots, by presence of children in household, June 2014
Energy drinks for kids and teens
APPENDIX – OTHER USEFUL CONSUMER TABLES
Figure 65: Purchasing habits for energy drinks, by generations, June 2014
Figure 66: Purchasing habits for energy shots, by generations, June 2014
Figure 67: Occasion for consuming energy drinks/energy shots, by presence of children in household, June 2014
Figure 68: Occasion for consuming energy drinks/energy shots, by Hispanic origin, June 2014
Figure 69: Occasion for consuming energy drinks/energy shots, by age, June 2014
Figure 70: Location for consuming energy drinks/energy shots, by employment, June 2014
Figure 71: Occasions for consuming energy drinks/energy shots, by purchasing habits for energy drinks, June 2014
Figure 72: Occasions for consuming energy drinks/energy shots, by change in purchasing habits for energy shots, June 2014
Figure 73: Attitudes and behaviors toward energy drinks/energy shots, June 2014
Figure 74: Personal consumption of energy drinks by brand, November 2008-December 2013
Figure 75: Personal consumption of energy drinks by brand, February 2008-March 2014
APPENDIX – TRADE ASSOCIATIONS