[email protected] +44 20 8123 2220 (UK) +1 732 587 5005 (US) Contact Us | FAQ |

Energy Drinks and Shots: U.S. Market Trends

January 2013 | 137 pages | ID: ED76EDFD6B8EN
Packaged Facts

US$ 3,500.00

E-mail Delivery (PDF)

Download PDF Leaflet

Wire Transfer
Checkout Later
Need Help? Ask a Question
In broad strokes, health and wellness-related beverage products are seeing increased consumer penetration, while classic beverages—especially colas—are seeing consumer attrition. Specifically, functional ready-to-drink (RTD) beverages, namely energy drinks, sports drinks, and tea, have increased consumer penetration over the past few years.

While the energy drinks and shots market may be a small component of the non-alcoholic beverage industry, it is perhaps the most dynamic market—growing 60% from 2008-2012 according to Packaged Facts estimates in the all-new research report Energy Drinks and Shots: U.S. Market Trends. In 2012, total U.S. sales for the energy drinks and shots market was worth more than $12.5 billion.

Intense competition surrounds the beverage industry as marketers seek to increase market penetration and consumption frequency through positive alignment as a healthy and/or functional beverage. Thirst quencher/sports drinks remain the most formidable competitor for energy drinks as this type of beverage attracts a large constituency of energy drink users. Energy drinks are subject to competition from other energy-boosting beverages such as coffee and tea beverages, as well as an increasing number of new product innovations that tap into the energy trend but are outside of the beverage industry.

At present, energy drinks have the lowest consumption rates of any RTD beverage—a point which reflects the market’s relative infancy but also its growth potential. Experian Simmons analysis shows the growth trend of this market, with the incidence of energy drink usage among adults rising from nearly 13% in 2006 to 17% in 2012. In addition, there is a modest segment of heavy users: 5% of adults consume energy drinks 5-7 times per month and less than 2% drink energy drinks 10 or more times. Consumers 18-34, men, Hispanics, Pacific region residents, and adults with children in the household are demographics that over index in energy drink usage.

Packaged Facts estimates that energy drinks account for some 78% market share, followed by 18% for energy shots, and energy drink mixes (roughly 4%) in 2012. A few select marketers dominate the energy drinks and shots market. This demonstrates the first mover advantage in each category. The result is a market that is highly dependent on a handful of key brands, namely Red Bull, Monster Energy, 5-Hour Energy, and Rockstar Energy.

Retail distribution of energy drinks and shots continues to expand at a fervent pace—making these products accessible at nearly any retail outlet from major grocery outlets to dollar stores and smoothie shops to sporting goods stores. Packaged Facts estimates that convenience stores hold the largest share of market sales (59%), followed by mass merchandisers (13%), supermarkets (10%), club stores/warehouse (5%), and drug stores (2%). In aggregate, all other retailers contribute a significant 11% to market sales.

Overall growth of energy drinks and shots is influenced positively by new product launches and expanded retail distribution. Economic factors and shifts in the U.S. adult population by age and ethnicity/race are also factors to market growth. An increasingly competitive market for “energy-boosting” products is perhaps the market’s greatest threat.
CHAPTER 1: EXECUTIVE SUMMARY

Scope of Report
Methodology
Energy drinks still have modest consumption rates
Table 1-1 RTD Non-Alcoholic Beverage Usage, 2006-2012(percent of U.S. adults)
Innovative beverages
  Healthy beverages
  Customizable and portable beverages
  Relaxation beverages
Innovation opportunity
Encourage more frequent consumption
Target older consumers
Interactive packaging could remedy labeling concerns and more
Industry context
Energy drinks and shots deliver impressive growth
Table 1-2 Total U.S. Sales of Energy Drinks and Shots, 2008-2012 (in millions and percent change from previous-year period)
  Explosive growth from 2011-2012
  Mass-Market Category Performance
Figure 1-1 Percent Growth in SymphonyIRI-Tracked Sales of Energy Drinks and Shots, 2012 (percent change from previous-year period)
  Product performance: Three core energy drink brands steer category growth
  Product performance: Living Essentials dominates energy shots
  Product performance: Kraft Foods’ enters category with well-known brands
Convenience stores capture largest share of energy market sales
Market Innovation
  “Diet” energy drinks
  Proliferation of “natural” energy
  Cross-pollination of energy drinks
Sales of energy drinks/shots projected to reach $21.5 billion by 2017
Table 1-3 Projected U.S. Sales of Energy Drinks and Shots, 2012-2017 (in millions of dollars and percent)
Top Marketers Dominate Energy Drink and Shot Sales
Figure 1-2 Top Marketers of Energy Drinks and Shots by Share of SymphonyIRI-Tracked Sales, 2012
Energy Drink Usage
Table 1-4 Energy Drink Usage Rates, 2006-2012 (percent of U.S. adults)
Young adults are core users of energy drinks
Frequency of Energy Drink Usage
Energy drink brand usage
Table 1-5 Energy Drink Usage Frequency by Selected Brands, 2012 (U.S. adults)
Energy drink consumers strive to be youthful and health-minded
Table 1-6 Energy Drink Consumer Agreement Index for
Selected Health and Nutrition Statements, 2012 (U.S. adults)

CHAPTER 2: COMPETITIVE CONTEXT FOR ENERGY DRINKS

  Highlights
Scope
  Market Definition
  Methodology
Energy Drinks in RTD Beverage Context
  Energy drinks still have modest consumption rates
  Table 2-1 RTD Non-Alcoholic Beverage Usage, 2006-2012 (percent of U.S. adults)
  Energy drinks vs. colas
  Figure 2-1 Usage Rates for Energy Drinks vs. Colas, 2006 vs. 2012 (percent of U.S. adults)
  Energy drinks vs. sports drinks
  Figure 2-2 Usage Rates for Energy Drinks vs. Sports Drinks, 2006 vs. 2012 (percent of U.S. adults)
  Figure 2-3 Consumption Frequency of Energy Drinks vs.
  Sports Drinks in last 30 Days, 2012 (in percentage of users who drank each beverage in last 30 days)
  Energy drinks vs. coffee/tea beverages
  Figure 2-4 Starbucks, DoubleShot Energy
  Figure 2-5 Usage Rates for Energy Drinks vs. RTD Coffee and Tea, 2007 vs. 2012 (percent of U.S. adults)
  Figure 2-6 Napco Inc., Versanto Force 3X Hyper-Caffeinated Coffee
  Table 2-2 Coffee and Tea Usage, 2006-2012 (percent of U.S. adults)
Energy Drink Users’ Consumption of Other Beverages
  Energy drink users also enjoy other RTD beverages
  Table 2-3 Indexes Among Energy Drink Consumers for Use of Selected Other Beverage Types, 2012 (U.S. adults)
Competitive Context: Beverage Innovation
  Innovative beverages
  Healthy beverages
  Figure 2-7: Pinnacle Drinks, SoReal
  Customizable and portable beverages
  Figure 2-8: Kraft Foods, MiO Liquid Enhancers
  Figure 2-9 Coca-Cola Company, Dasani Drops
  Relaxation beverages
  Figure 2-10 Marley’s Ventures Inc., Marley’s Mellow Mood
Market Opportunities
  Innovation opportunity
  Table 2-4 Usage Rates for Selected Types of Beverage Mixes, 2006-2012 (percent of U.S. adults)
  Table 2-5
  Index Among Energy Drink Consumers for Use of Selected Beverage Mix Types, 2012 (U.S. adults)
  Encourage more frequent consumption
  Target older consumers
  Interactive packaging could remedy labeling concerns and more

CHAPTER 3: THE MARKET

Highlights
Industry context
  Table 3-1 SymphonyIRI-Tracked Sales of Energy Drinks and Shots, 2012 (in millions and change from previous-year period)
  Figure 3-1 Growth in SymphonyIRI-Tracked Sales of Energy Drinks and Shots, 2011 vs. 2012 (percent)
Market Size and Growth
  Energy drinks and shots deliver impressive growth
  Figure 3-2 Total U.S. Sales of Energy Drinks and Shots, 2008-2012 (in millions of dollars)
  Table 3-2 Total U.S. Sales of Energy Drinks and Shots, 2008-2012 (in millions and percent change from previous-year period)
Market Composition
  Dynamic market allows for growth across all categories
  Energy drinks a $9.8 billion market
  Table 3-3 Total U.S. Sales of Energy Drinks and Shots by Product Category, 2008-2012 (in millions)
  Energy shots and energy drink mixes steadily increase market share
  Figure 3-3 Share of Total U.S. Sales of Energy Drinks and Shots by Product Category, 2008-2012
  Explosive growth from 2011-2012
  Figure 3-4 Total U.S. Sales of Energy Drinks and Shots by Percent Growth, 2008-2012
  Mass-Market Category Performance
  Table 3-4 SymphonyIRI-Tracked Sales of Energy Drinks and Shots by
  Product Category, 2012 (in millions and change from previous-year period)
  Figure 3-5 Percent Growth in SymphonyIRI-Tracked Sales of Energy
  Drinks and Shots, 2012 (percent change from previous-year period)
  Sales performance for energy drinks
  Table 3-5 Total U.S. Sales of Energy Drinks, 2008-2012 (in millions of dollars and percent)
  Product performance: Three core energy drink brands steer category growth
  Figure 3-6 Leading Brand Shares of SymphonyIRI-Tracked Sales of Energy Drinks , 2012
  Table 3-6 SymphonyIRI-Tracked Sales of Energy Drinks by Marketer and Brand, 2012 (in thousands of dollars and percent)
  Table 3-6 [cont’d.] SymphonyIRI-Tracked Sales of Energy Drinks by
  Marketer and Brand, 2012 (in thousands of dollars and percent)
  Sales Performance for energy shots
  Table 3-7 Total U.S. Sales of Energy Shots, 2008-2012 (in millions and percent change from previous-year period)
  Product performance: Living Essentials dominates energy shots
  Figure 3-7 Leading Marketer Shares of SymphonyIRI-Tracked
  Sales of Energy Shots, 2012
  Table 3-8 SymphonyIRI-Tracked Sales of Energy Shots by
  Marketer and Brand, 2012 (in thousands and percent
  change from previous-year period)
  Energy drink mix
  Table 3-9 Total U.S. Sales of Energy Drink Mix, 2008-2012 (in millions of dollars and annual percent change)
  Product performance: Kraft Foods’ enters category with well-known brands
  Figure 3-8 Leading Brand Shares of SymphonyIRI Sales of
  Energy Drink Mix, 2012
  Table 3-10 SymphonyIRI-Tracked Sales of Energy Drink Mix by Marketer and Brand, 2012 (in thousands of dollars and change from previous-year period)
Retail Distribution
  Convenience stores capture largest share of energy market sales
  Retail expansion of energy drinks and shots
  Figure 3-9 Share of U.S. Sales of Energy Drinks and Shots by Retail Channel, 2012 (in percent)
  Table 3-11 Total U.S. Sales of Energy Drinks and Shots by Retail Channel, 2012 (in millions of dollars and percent share)
Factors to Market Growth
  Market Innovation
  “Diet” energy drinks
  Proliferation of “natural” energy
  Figure 3-10 Campbell Soup Company, V8 Energy Shots
  Figure 3-11 Starbucks, Refreshers Energy Drinks
  Figure 3-12 Jamba Inc., Jamba All-Natural Energy Drinks
  Cross-pollination of energy drinks
  Convenience store channel store growth
  Table 3-12 Number of convenience stores, 2006-2012
  Economic conditions
  Median income
  Figure 3-13 Median Household Income in Inflation-Adjusted Dollars, 2006-2011
  Unemployment and underemployment
  Figure 3-14 Unemployment and Underemployment Rates in the U.S., 2007-2012
  Consumer confidence
  Figure 3-15 Consumer Confidence Index, 2007-2012
  Shifts in population of key demographics
  Young adult population
  Figure 3-16 U.S. Adult Population by Age, 2011
  Hispanic population
  Figure 3-17 U.S. Adult Population by Race/Ethnicity, 2011
  Linking energy drink/shot consumption with health risk
  Competitive energy products
  Figure 3-18 PureBrands, Sheets Energy
  Figure 3-19 Rocasuba, Inc., Spot On Energy
  Figure 3-20 Spotonenergy.com Comparison Chart, November 2012
  Figure 3-21 AeroDesigns Inc., AeroShot Energy
  Figure 3-22 Aeroshots.com, Tedeschi Food Shops Promotion November 2012
  Figure 3-23 PepsiCo Frito-Lay., Cracker Jack’D
  Figure 3-24 Jelly Belly Candy Company, Sport Beans
Market Forecast
  Sales of energy drinks/shots projected to reach $21.5 billion by 2017
  Figure 3-25 Projected U.S. Sales of Energy Drinks and Shots, 2012-2017 (in millions of dollars)
  Table 3-13 Projected U.S. Sales of Energy Drinks and Shots, 2012-2017 (in millions of dollars and percent)

CHAPTER 4: THE MARKETERS

Highlights
Top Marketers Dominate Energy Drink and Shot Sales
  Figure 4-1 Top Marketers of Energy Drinks and Shots by Share of SymphonyIRI-Tracked Sales, 2012
  Top Energy Drink and Shot Marketers by Category
  Figure 4-2 Share of SymphonyIRI-Tracked Sales of Energy Drinks and Shots by Category, 2012
  Red Bull and Monster Beverage continue to grow market share
  Living Essential losing ground as energy shot category matures
  Kraft Foods experiences strongest growth via energy drink mixes
  Figure 4-3 Kraft Foods Inc, MiO Energy
  High Performance Beverage performs well; Soda manufacturers’ brands falter
  Table 4-1 Top Marketers and Brands of Energy Drinks and Shots by Share of SymphonyIRI-Tracked Sales, 2012 (in millions of dollars and change over previous-year period)
  Figure 4-4 Top Marketers of Energy Drinks and Shots by Share of SymphonyIRI-Tracked Sales, 2012
  Top Brands
  Red Bull launches Total Zero
  Name change by Monster Beverage Corp. reflects powerhouse brand
  Rockstar International churns out new products that go beyond energy
  Figure 4-5 Rockstar International, Rockstar Relax
  Table 4-2 Top Marketers and Brands of Energy Drinks and Shots
  by SymphonyIRI-Tracked Sales, 2012 (in millions of dollars and percent share)
  Table 4-2 [cont’d.] Top Marketers and Brands of Energy Drinks and Shots by SymphonyIRI-Tracked Sales, 2012 (in millions of dollars and percent share)
  Table 4-3 Top Brands of Energy Drinks and Shots by SymphonyIRITracked Sales, 2012 (in millions of dollars, share, and change over previous-year period)
Company Profile: Red Bull North America
  Performance: Continued Growth
  Sales analysis
  Table 4-4 SymphonyIRI-Tracked Sales of Red Bull North America
  Energy Drinks and Shots, 2012 (in thousands of dollars and percent change from previous-year period)
  Volume and unit analysis
  Table 4-5 SymphonyIRI-Tracked Sales of Red Bull Energy Drinks and Shots, 2011-2012 (in volume and units and percent change from previous-year period)
  Brand Qualities
  Figure 4-6 Red Bull, Red Bull Editions
  Marketing Strategies
  The Red Bull Consumer
  Table 4-6 Demographic Snapshot of Red Bull Energy Drink Consumers, 2012 (U.S. adults)
  Opportunities and Outlook
Company Profile: Monster Beverage Corp.
  Performance: Strong Innovation
  Sales analysis
  Table 4-7 SymphonyIRI-Tracked Sales of Monster Beverage Corp.
  Energy Drink, 2012 (in thousands of dollars and change from previous-year period)
  Volume and unit analysis
  Table 4-8 SymphonyIRI-Tracked Sales of Monster Energy Drinks, 2011-2012 (by volume and unit metrics and percent change from previous-year period)
  Brand Qualities
  Figure 4-7 Monster Beverage, Monster Energy
  Marketing Strategies
  The Monster Energy Consumer
  Table 4-9 Demographic Snapshot of Monster Energy Drink
  Consumers by Age Bracket, 2012 (U.S. adults)
  Opportunities and Outlook
Company Profile: Living Essentials
  Performance: Slow and Steady
  Sales analysis
  Figure 4-8 5-Hour Energy, Pink Lemonade
  Table 4-10 SymphonyIRI-Tracked Sales of Living Essentials
  Energy Shots, 2012 (in thousands of dollars and percent change from previous-year period)
  Volume and unit analysis
  Table 4-11 SymphonyIRI-Tracked Sales of 5-Hour Energy Shots, 2011-2012 (in volume and units and percent change from previous-year period)
  Brand Qualities
  Marketing Strategies
  Figure 4-9 5-Hour Energy, “Why Do You Want To Walk?”
  Sweepstakes
  Figure 4-10 5-Hour Energy, 5-Hour Energy Work Day Marathon App
  The 5-Hour Energy Consumer
  Table 4-12 Demographic Snapshot of 5-Hour Energy Shot
Consumers by Age Bracket, 2012 (U.S. adults)
  Opportunities and Outlook
  Company Profile: Rockstar International
  Performance: Solid Growth Supported by Innovation
  Sales analysis
  Table 4-13 SymphonyIRI-Tracked Sales of Rockstar International
  Energy Drink and Shots, 2012 (in thousands of dollars and change from previous-year period)
  Table 4-14 SymphonyIRI-Tracked Sales of Rockstar Energy Drinks, 2011-2012 (in volume and unit metrics and percent change)
  Volume and unit analysis
  Brand Qualities
  Figure 4-11 Rockstar International, Rockstar Recovery
  Marketing Strategies
  Figure 4-12 Rockstar International, Rockstar Boat Giveaway
  The Rockstar Consumer
  Table 4-15 Demographic Snapshot of Rockstar Energy Drink
  Consumers by Age Bracket/Generation, 2012 (U.S. adults)
  Opportunities and Outlook
Competitor Briefs
  PepsiCo
  Table 4-16 SymphonyIRI-Tracked Sales of PepsiCo Energy Drinks, 2012 (in thousands of dollars and change from previous-year period)
  Kraft Foods
  Table 4-17 SymphonyIRI-Tracked Sales of Energy Drink Mixes, 2012 (in thousands of dollars and change over previous-year period
  High Performance Beverage
  Table 4-18 SymphonyIRI-Tracked Sales of Energy Drinks and Shots, 2012 (in thousands of dollars and change over previous-year period)
  Coca-Cola Company
  Table 4-19 SymphonyIRI-Tracked Sales of Coca-Cola Company
  Energy Drinks, 2012 (in thousands of dollars and change over previous-year period)
  Private Label
  Table 4-20 SymphonyIRI-Tracked Sales of Private Label Energy
  Drink Products, 2012 (in millions of dollars and change over previous-year period)
Marketers and Brands to Watch
  Figure 4-13 Top Marketers and Brands of Energy Drink Products by SymphonyIRI-Tracked Dollar Sales Growth, 2012 vs. 2011 (in millions of dollars)
  Energy drink brands by dollar growth
  Table 4-21 Top Energy Drink Brands by SymphonyIRI-Tracked
  Dollar Sales Growth, 2012 vs. 2011 (in percent and dollar change over previous-year period)
  Energy shot brands by dollar growth
  Table 4-22 Top Energy Shot Brands by SymphonyIRI-Tracked
  Dollar Sales Growth, 2012 vs. 2011 (in percent and dollar change over previous-year period)
  Energy drink mix brands by dollar growth
  Table 4-23 Top Energy Drink Mix Brands by SymphonyIRI-Tracked
  Dollar Sales Growth, 2012 vs. 2011 (in percent and dollar change over previous-year period)

CHAPTER 5: THE CONSUMER

  Note on Experian Simmons Data
  Highlights
Energy Drink Usage
  Table 5-1 Energy Drink Usage Rates, 2006-2012 (percent of U.S. adults)
  Young adults are core users of energy drinks
  Table 5-2 Energy Drink Use by Age Bracket and Generational Cohort, 2012 (U.S. adults)
  Figure 5-1 U.S. Adult Population by Age, 2011
  Men more likely to consume energy drinks
  Figure 5-2 Goddess Energy, Inc., Flirt Energy Drink
  Table 5-3 Energy Drink Use by Gender, 2012 (U.S. adults)
  Energy drinks are popular among minority race/ethnic groups
  Table 5-4 Energy Drink Use by Race/Ethnicity, 2012 (U.S. adults)
  Figure 5-3 U.S. Adult Population by Race/Ethnicity, 2011
  Pacific region residents show uptick in energy drink consumption
  Table 5-5 Energy Drink Use by Region of Residence, 2012 (U.S. adults)
  Parents of young children more likely users of energy drinks
  Table 5-6 Energy Drink Use by Presence and Age of Children in Household, 2012 (U.S. adults)
  Figure 5-4 U.S. Adult Population by Presence of Children in Household, 2000-2010
Frequency of Energy Drink Usage
  Table 5-7 Energy Drink Usage Frequency, 2006-2012 (percent of U.S. adults)
  Energy drink brand usage
  Figure 5-5 Hansen Natural, Monster Rehab Protean + Energy Drink
  Table 5-8 Energy Drink Usage Frequency by Selected Brands, 2012 (U.S. adults)
Attitudes of the Energy Drink Consumer
  Energy drink consumers strive to be youthful and health-minded
  Table 5-9 Agreement Indexes Among Energy Drink Users for Selected Health and Nutrition Statements, 2012 (U.S. adults)
  Energy drink users seek convenient short cuts
  Table 5-10 Agreement Indexes Among Energy Drink Use for Selected Time and Convenience-Related Statements, 2012 U.S. adults)
  Energy drink consumers experiment with food flavors and products
  Table 5-11 Agreement Indexes Among Energy Drink Users for Selected Food Statements, 2012 (U.S. adults)
  Willing to try new beverages, but may prefer alcoholic varieties
  Table 5-12 Agreement Indexes Among Energy Drink Users for Selected Beverage Statements, 2012


More Publications