In the United States, it’s estimated that the energy drink market made 14.30 billion USD in 2016. Energy drink consumption has been on the rise and it’s due to the ever-changing market. If you didn’t know about the vast market or want to learn more, below is our breakdown of energy drinks and their market.
1. What are Energy Drinks?
You’ve probably seen them in the grocery stores and gas stations. Energy drinks are everywhere and the energy drink market size is rapidly growing.
These beverages contain ingredients such as amino acids, caffeine, herbal extracts, proprietary blends, and taurine. They are marketed as drinks that will help boost physical energy and mental alertness.
You can purchase energy drinks in the form of a shot, carbonated drink, and mixers. All these variants of energy drinks can be found online, at a local supermarket, or most likely anywhere that sells sodas.
2. The Growing Energy Drink Market
Since 2014 the energy drink consumption has been on a steady rise. Since more consumers are buying the drinks year after year, the market is also reflecting this positive rise.
It is estimated that between now and 2020 the energy drinks market will grow up to 40 percent. It’s projected that even after 2020 the market will continue on a steady growth.
3. Are There Certain People that Drink Energy Drinks?
When looking at the statistics, it’s clear to see that energy drinks are popular within a certain demographic.
Males between the ages of 18 and 35 are a good portion of the market. Women around the same age range make up at most 40 percent of energy drink consumption.
The age range can be due to marketing campaigns targeting the millennial crowd. It is also believed that the younger generation is attracted to energy drinks since they are always creating formulas to cater to the latest trends.
4. Energy Drinks are Not Safe from the Ever-Changing Market
Even though energy drinks are a niche market, they have to keep up with food trends to stay relevant. This is like any food market in the world, trends drive sales.
In the past ten years, drinks with little to no sugar rose in popularity. Since the original formulas of energy drinks contained up to one daily dose of sugar it was important for the market to change their drinks. In the past decade, we have seen energy drinks with no sugar or natural sugar hit the market.
This new formulation helps cater to consumers who are watching their weight or sugar intake. Since this drink now appeals to a new set of consumers, it helps the market see positive growth.
A few years after the no sugar trend a new one hit the scene, organic. Consumers were now searching for food and drink items that were created with organic ingredients.
Just like the market catered to the low-sugar trend, they began to make organic drinks. Most of these organic blends have low sugar so they can cater to both types of consumers. These organic blends axed the synthetically sourced caffeine, artificial ingredients, and artificial additives included in the original formulas.
5. Low-Calorie Drink Options are in Demand
We discussed the little to no sugar and organic trend above, but low-calorie is another trend that has taken over the food industry. Just like with any trend, energy drinks must cater to this demographic so their sales can keep rising.
Along with low-sugar and organic formulas you will see low-calorie options on the shelf. These three may look different but most of the time there are only minor changes to the formulas. The reason for this is so the drink brand can target each consumer.
This marketing strategy is working because consumers are now showing interest in the low-calorie, sugar-free, diet, and organic versions. Investors are also loving these new blends, seeing great potential in the ever-growing industry.
6. New Trend on the Rise – Holistic and Mental Focus
The food trends of the past ten years have given rise to diet, organic, low-calorie, sugar-free drinks. When looking to the market of the future, it’s predicted that holistic drinks that help mental focus will be on the rise.
Holistic drinks that include teas and herbs will begin to integrate their way into the energy drink market. Beverage scientists are already creating brews that cater to this consumer base.
The mental focus will be promoted by the natural vitamins in the holistic ingredients. The idea is for a beverage that will boost energy levels and their overall sense of function.
7. Who is the Competition?
Just like any energy drink maker, an energy drink manufacturer must stay up to date on their competition. The drink business is very competitive and if a trend goes unnoticed, it could cost the company a lot of sales.
The main competitors of energy drinks are coffee and tea beverages, sports drinks, packaged juices, malted health drinks, and carbonated drinks.
Since their competition market is wide and vast they must always be creating new products to keep consumers interested and to try and stay ahead of the trends.
8. What Forms do Energy Drinks Come in?
We have discussed that energy drinks can come in the form of a carbonated beverage, but there are other styles of energy drinks. These formulas include:
Now You Know About the Energy Drink Market
You now have a snapshot of the energy drink market. From the forms that energy drinks come in, to the ever-changing trends they keep up with.
For more blogs and information on beverages, check out our blog here.