Energy drink market continues growth

January 9, 2014

As a new year begins and consumers return to work, many will be looking for an energy kick. But according to new research from Mintel, nearly six in 10 Americans (59%) who are current energy drink or shot users say they worry about the safety of energy drinks and energy shots. However, despite allegations of health hazards and government scrutiny, users continue to partake in these flavorful energy enhancers.

Despite fears over safety, the energy drink, shot, and mix category has beat back detractors to show consistent annual growth from 2008 to 2013 (est.) sales. The market reported two years of 17% increases in 2012 and 2013 (est.) and is expected to continue a steady upward trajectory to 2018.

More than half of Mintel respondents (56%) who use energy drinks and/or shots do so because they are more effective for energy and alertness than other beverages. Just more than one-third (35%) say they are convenient and 31% like the taste.

When it comes to cutting down on energy drinks, health and cost are the leading reason. Indeed, 39% of Americans say they are not good for their health and 35% say they have heard negative information about their health effects. In addition, 35% say they are just too expensive.

“Manufacturers must address these health issues in order to retain current users, while concerns about price should be addressed by promotions and limited-time discounts,” said Jenny Zegler, Global Food and Drink Analyst for Mintel Food & Drink.

When marketing to energy drinkers, men and women should be viewed differently. More than three-quarters of women ages 18–34 (79%) who drink energy beverages agree that companies should include recommended daily consumption limits on the packaging of their energy drinks versus 71% of men. In addition, 62% of women ages 35+ say they worry about the safety of energy drinks and shots compared to only 51% of their male counterparts.

“People’s desire for additional energy to accomplish everything in a given day will continue to fuel positive sales growth for the energy drink category. However, because even a portion of current users are cutting back due to health and safety concerns, companies must educate the public on the health, safety, and global use of energy drinks, shots, and mixes. Innovations in serving size and/or format could keep users active in the category and perhaps inspire new entrants,” said Zegler.

Press release