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Energy Drinks and Energy Shots - US - June 2012

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Energy drinks/shots market poised for growth
Figure 1: U.S. sales of energy drinks and energy shots, 2006-16
Forecast
Figure 2: Fan chart forecast for energy drinks and energy shots, at best-, worst-, and central-case scenarios, 2006-16
Market factors
Unemployment rate among the key demographic groups improves, but still high
Figure 3: Unemployment status (seasonally adjusted) among civilian non-institutional population, by age, gender, and race/Hispanic origin, May 2011-May 2012
Asians, blacks, and Hispanics offer growth opportunities through favorable population projections
Figure 4: Rate of change in the U.S. population, by blacks/Asians/Hispanic origin, 2006-16
Companies, brands, and innovation
Red Bull maintains its top position in energy drinks
Figure 5: FDMx manufacturers sales of energy drinks, 2012*
Living Essentials’ 5-hour Energy rules the energy shots segment
Figure 6: FDMx manufacturers sales of energy shots, 2012*
New product introductions rebound in 2011
Figure 7: New energy drinks and energy shots products count, 2006-11
The consumer
Energy drinks’ adult consumer base grows in 2011, albeit slowly
Figure 8: Trends in the incidence of personal consumption of energy drinks, 2005-10/11
Teen consumer base shrinks in 2011
Figure 9: Trends in the incidence of teen personal consumption of energy drinks, 2007-10/11
Cold vault is the best-selling retail space for energy drinks
Figure 10: Degree of influence of various factors in energy drinks purchase decision, April 2012
Early morning, morning, and afternoon are the key occasions to consume energy drinks
Figure 11: Energy drinks consumption frequency, by occasion, April 2012
Most energy drinks nonusers are not interested in the product; beverage not deemed safe
Figure 12: Reasons for not drinking energy drinks and energy shots, by age, April 2012
What we think
ISSUES IN THE MARKET
Can the energy drinks market grow its consumer base?
Do adults aged 55+ prefer energy shots to energy drinks?
How do safety concerns about the amount of caffeine in energy drinks/ shots influence the market?
Does innovation help drive growth in the market?
INSIGHTS AND OPPORTUNITIES
Energy drinks makers do not exclusively own energy; move beyond energy boost claim
Offer visual marking on packaging to avoid caffeine abuse
INSPIRE INSIGHTS
Trend: Extend My Brand
Trend: Perfecting the Detail
MARKET SIZE AND FORECAST
Key points
Energy drinks/shots market poised for growth
Sales and forecast of energy drinks and energy shots
Figure 13: Total U.S. retail sales and forecast of energy drinks and energy shots, at current prices, 2006-16
Figure 14: Total U.S. retail sales and forecast of energy drinks and energy shots, at inflation-adjusted prices, 2006-16
Fan chart forecast
Figure 15: Fan chart forecast for energy drinks and energy shots, at best-, worst-, and central-case scenarios, 2006-16
Walmart sales
MARKET DRIVERS
Key points
Research studies find energy drinks and energy shots risky for children
Unemployment rate among the key demographic groups improves, but still high
Figure 16: Percentages of unemployed adults aged 16+, 2002-12
Figure 17: Unemployment status (seasonally adjusted) among civilian non-institutional population, by age, gender, and race/Hispanic origin, May 2011-May 2012
Adults aged 18-34 are the key consumers, but population trends indicate little growth
Figure 18: Population 18+, by age, 2006-16
Teen population projections offer growth
Figure 19: teens population, 2006-16
Hispanics and blacks offer growth opportunities
Figure 20: Population, by race and Hispanic origin, 2006-16
COMPETITIVE CONTEXT
Key points
Coffee continues to be the biggest competition for energy drinks/energy shots
Figure 21: Reasons for drinking energy drinks and energy shots, April 2011
Figure 22: Personal incidence of drinking coffee, by age, June 2011
Non-alcoholic beverages other than coffee also pose competition for energy drinks
Growing repertoire of energy-boosting alternatives
Figure 23: Personal incidence of using vitamins/mineral tablets, capsules, or liquids (non-prescription), by gender and age, April 2010 - June 2011
Growing popularity of relaxation drinks and shots
SEGMENT PERFORMANCE
Key points
Figure 24: U.S. sales of energy drinks and energy shots, by segment, 2006-16
Figure 25: U.S. sales of energy drinks and energy shots, by segment, 2009-11
SEGMENT PERFORMANCE—ENERGY DRINKS (NON-ASEPTIC)
Key points
Energy drinks continue to offer growth potential
Natural energy drinks—fad or growth-driving opportunity?
Total sales of energy drinks (non-aseptic)
Figure 26: U.S. sales of energy drinks (non-aseptic), 2006-16
SEGMENT PERFORMANCE—ENERGY SHOTS
Key points
Energy shots’ growth slows down; one brand controls the segment’s fate
Figure 27: 5-hour Energy consumed in the past 30 days, by race/Hispanic origin, 2009 and 2011
Total sales of energy shots
Figure 28: U.S. sales of energy shots, 2006-16
SEGMENT PERFORMANCE—ENERGY DRINKS MIXES
Key points
Energy drinks mixes offer growth potential on the strength of innovation
Total sales of energy drinks mixes
Figure 29: U.S. sales of energy drinks mixes, 2006-16
RETAIL CHANNELS
Key points
Convenience stores continue to be the top channel
Supermarkets grow sales, increased focus on single-serve selection
Figure 30: U.S. sales of energy drinks and energy shots, by retail channel, 2009 and 2011
LEADING COMPANIES
Key points
Figure 31: FDMx sales of energy drinks and energy shots, by leading manufacturers, 2011 and 2012
BRAND SHARE—ENERGY DRINKS (NON-ASEPTIC)
Key points
Red Bull exhibits impressive growth; introduces Total Zero
Hansen’s Monster continues to churn out successful line extensions
Rockstar Recovery makes an impact; 2X exhibits growth potential
Coca-Cola and PepsiCo unable to make an impact
Figure 32: FDMx sales of leading energy drinks (non-aseptic) brands, 2011 and 2012
BRAND SHARE—ENERGY SHOTS
Key points
Living Essentials maintains its top position
Private label shots proliferate
Strong backing behind upcoming brands
Figure 33: FDMx sales of leading energy shots brands, 2011 and 2012
INNOVATIONS AND INNOVATORS
Key points
New product count rebounds in 2011
Figure 34: New energy drinks and energy shots products count, 2006-12
Functional benefits—the top claim in 2012
Figure 35: Top 10 claims in new energy drinks and energy shots products, 2008-12
Private label energy shots proliferate
Energy drinks adopt the “Zero” moniker; 10 calorie becomes popular
Natural energy drinks products continue to appear
Tea-influenced energy drinks on the rise
Coconut water makes appearance in energy drinks
Differentiation through packaging
MARKETING STRATEGIES
 INTRODUCTION
Television ads
FRS Healthy Energy impresses through “motivational” tone
Figure 36: FRS TV ad, “Tim Tebow,” 2011-12
Red Bull energizes
Figure 37: Red Bull TV ad, “Make It Happen,” 2012
Rockstar and Monster—extreme sports-based ads
Figure 38: Rockstar TV ad, “Water Ride,” 2011-12
Monster Energy
Figure 39: Monster Energy TV ad, “See It All Live,” 2011-12
THE ENERGY DRINKS CONSUMER—USAGE, FREQUENCY, AND BRANDS
Key points
Energy drinks consumer base grows in 2011
Figure 40: Trends in the incidence of personal consumption of energy drinks, 2005-2010/11
Volume consumption picks up in 2011
Figure 41: Trends in the mean frequency of drinking energy drinks, 2005-2010/11
Men continue to be the primary consumer in the market
Figure 42: Personal consumption of energy drinks, by gender, October 2010-November 2011
Adults aged 18-34 are the key consumers
Figure 43: Personal consumption of energy drinks, by age, October 2010-November 2011
Adults with children in household exhibit higher-than-average consumption
Figure 44: Personal consumption of energy drinks, by presence of children, October 2010-November 2011
Red Bull consumer base continues to shrink
Figure 45: Energy drinks brands consumed in the last 30 days, by age, October 2010-November 2011
Figure 46: Incidence of personally drinking energy drinks/energy shots or buying for someone in the household, by age, April 2012
FACTORS INFLUENCING ENERGY DRINKS PURCHASE DECISION
Price is the most important attribute in purchasing energy drinks
Cold vault is the best-selling retail space for energy drinks
Packaging size and flavor variety important to energy drinks buyers/drinkers
Brand trust is important
Long-lasting energy boost and all-natural ingredients important factors
Smartphone and social media marketing can be effective in this market
Figure 47: Degree of influence of various factors in energy drinks purchase decision, April 2012
Figure 48: Degree of influence of various factors in energy drinks purchase decision, by age, April 2012
ENERGY DRINKS CONSUMPTION BY OCCASION AND LOCATION
Early morning, morning, and afternoon are the key occasions to consume energy drinks
Figure 49: Energy drinks consumption frequency, by occasion, April 2012
Rockstar and Monster more frequently consumed brands compared to Red Bull
Figure 50: Energy drinks consumption frequency, by occasion, by incidence of personally drinking or buying energy drinks for someone in the household, by brand, April 2012
Energy drinks more likely to be consumed at work
Figure 51: Energy drinks consumption frequency, by location, April 2012
REASONS FOR NOT DRINKING ENERGY DRINKS
Most energy drinks nonusers are not interested in the product
Safety/health/taste concerns and prices keep many from embracing energy drinks
Energy drinks compete with other non-alcoholic beverages
Figure 52: Reasons for not drinking energy drinks, by gender, April 2012
Figure 53: Reasons for not drinking energy drinks, by age, April 2012
Most non-users are not interested in trying energy shots; find them unsafe, expensive
Figure 54: Reasons for not drinking energy shots, by gender, April 2012
Figure 55: Reasons for not drinking energy shots, by age, April 2012
CHANGE IN ENERGY DRINKS CONSUMPTION
One quarter of all energy drinks users drinking more energy drinks compared to two years ago
Figure 56: Change in the incidence of drinking energy drinks in the past two years, by age, April 2012
Figure 57: Change in the incidence of drinking energy drinks in the past two years, by presence of children in household, April 2012
Reasons for drinking more energy drinks than before
Figure 58: Reasons for drinking more energy drinks compared to two years ago, April 2012
Reasons for drinking less energy drinks than before
Figure 59: Reasons for drinking less energy drinks than two years ago, April 2012
IMPACT OF RACE/HISPANIC ORIGIN
Key points
Asians show the highest incidence of drinking energy drinks; blacks are the heaviest consumers
Figure 60: Personal consumption of energy drinks, by race/Hispanic origin, October 2010-November 2011
Red Bull a favorite among most racial/ethnic groups
Figure 61: Brand drank in the last 30 days, by race/Hispanic origin, October 2010-November 2011
Blacks and Hispanics more interested in flavors, multipacks, and in-store promotions
Figure 62: Degree of influence of various factors in energy drinks purchase decision, by race/Hispanic origin, April 2012
Hispanics more concerned than the average about the safety of energy drinks/shots
Figure 63: Reasons for not drinking energy drinks, by race/Hispanic origin, April 2012
Figure 64: Reasons for not drinking energy shots, by race/Hispanic origin, April 2012
Hispanic energy drinks users increase energy drinks consumption
Figure 65: Change in the incidence of drinking energy drinks in the past two years, by race/Hispanic origin, April 2012
THE TEEN CONSUMER—USAGE, VOLUME, AND BRANDS
Key points
Teen consumer base shrinks
Figure 66: Trends in the incidence of teen personal consumption of energy drinks, 2007-2010/11
Energy drinks volume consumption on decline among teens
Figure 67: Trends in the mean frequency of drinking energy drinks among teens, 2007-2010/11
Teen boys move away from energy drinks
Figure 68: Personal consumption of energy drinks among teens, by gender, October 2010-November 2011
Teens fuel the Monster growth
Figure 69: Energy drinks consumption among teens, by brands, by gender and age, October 2010-November 2011
CUSTOM CONSUMER GROUP
Men aged 18-34 are the key consumer
Figure 70: Personal consumption of energy drinks, by gender and age, October 2010-November 2011
Energy drinks consumers are more likely to personally drink Red Bull than buy for someone else
Figure 71: Incidence of personally drinking or buying energy drinks for someone in the household, by brand, April 2012
Experian Simmons custom consumer segmentation findings
Food lifestyle segment
Variety on a Budget and Weekend Cooks are the key consumers
Figure 72: Energy drinks consumption, by food lifestyle segmentation, October 2010-November 2011
Retail shopping segment
Mall Maniacs like to try new things, create connection with brands
Figure 73: Energy drinks consumption, by retail shopping segmentation, October 2010-November 2011
Mobile user segmentation
Mobirati are the key consumers
Figure 74: Energy drinks consumption, by retail shopping segmentation, October 2010-November 2011
IRI/BUILDERS PANEL DATA—KEY HOUSEHOLD PURCHASE MEASURES
Overview of energy drinks
SS energy drinks (non-aseptic)—consumer insights on key purchase measures
Brand map
Figure 75: Brand map, selected brands of SS energy drinks (non-aseptic) buying rate, by household penetration, 2011*
Brand leader characteristics
Key purchase measures
Figure 76: Key purchase measures for the top brands of SS energy drinks (non-aseptic), by household penetration, 2011*
APPENDIX: SYMPHONYIRI/BUILDERS PANEL DATA DEFINITIONS
APPENDIX: RETAIL CHANNELS
Retail channels—convenience stores
Figure 77: U.S. sales of energy drinks and energy shots at convenience stores, 2006-11
Retail channels—supermarkets
Figure 78: U.S. sales of energy drinks and energy shots at supermarkets, 2006-11
Retail channels—drug stores
Figure 79: U.S. sales of energy drinks and energy shots at drug stores, 2006-11
Retail channels—other
Figure 80: U.S. sales of energy drinks and energy shots at other channels, 2006-11
APPENDIX: OTHER USEFUL TABLES
The Consumer—Usage, Brands, Type, and Volume
Figure 81: Personal consumption of energy drinks, by age and race, October 2010-November 2011
Figure 82: Incidence of personally drinking energy drinks/energy shots or buying for someone in the household, by gender and age, April 2012
Figure 83: Incidence of personally drinking energy drinks/energy shots or buying for someone in the household, by presence of children in household, April 2012
Figure 84: Incidence of personally drinking energy drinks/energy shots or buying for someone in the household, April 2012
Figure 85: Incidence of personally drinking energy drinks/energy shots or buying for someone in the household, by gender, April 2012
Figure 86: Energy drinks brands consumed in the last 30 days, by gender, October 2010-November 2011
Factors influencing energy drinks purchase decision
Figure 87: Degree of influence of various factors in energy drinks purchase decision, by presence of children in household, April 2012
Energy drinks consumption by occasion and location
Figure 88: Energy drinks consumption frequency, by location, by gender, April 2012
Figure 89: Energy drinks consumption frequency, by location, by age, April 2012
Figure 90: Energy drinks consumption frequency at work, by age, April 2012
Figure 91: Energy drinks consumption frequency, by location, by gender, April 2012
Figure 92: Energy drinks consumption frequency, by location, by presence of children in household, April 2012
Figure 93: Energy drinks consumption frequency, by location, by presence of children in household, April 2012
Figure 94: Energy drinks consumption frequency, by location, by presence of children in household, April 2012
Reasons for not drinking energy drinks/energy shots
Figure 95: Reasons for not drinking energy drinks and energy shots, April 2012
Figure 96: Reasons for not drinking energy drinks and energy shots, by presence of children in household, April 2012
Impact of race/Hispanic origin
Figure 97: Incidence of personally drinking energy drinks/energy shots or buying for someone in the household, by race/Hispanic origin, April 2012
Figure 98: Energy drinks consumption frequency, by location, by race/Hispanic origin, April 2012
Figure 99: Personal consumption of energy drinks, by age and Hispanic origin, October 2010-November 2011
APPENDIX: TRADE ASSOCIATIONS

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