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Energy Drinks - US - August 2013

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
Category continues upward trajectory despite stagnant use, recent controversy
Figure 1: Total U.S. sales and fan chart forecast of energy drinks, shots, and mixes, at current prices, 2008-18
Energy drinks continue to dominate market, but energy mixes catching on quickly
Figure 2: Total U.S. sales and forecast of energy drinks, shots, and mixes, by segment, 2008-18
Market factors
Retail channels
Rise of other retail channel exceeds category’s growth trajectory
Key players
Red Bull maintains its lead, while innovations from Monster and Kraft take share
New energy drink, shot launches trend downward since 2008
Figure 3: U.S. energy drink and shot launches, by year, 2007-13*
The consumer
Energy beverage usage remaining stagnant, but some adults are cutting back
Figure 4: Personal consumption of energy drinks and/or energy shots, May 2013
Efficacy, convenience leading reasons why adults drink energy beverages
Figure 5: Top five reasons for personal consumption of energy beverages, by race/Hispanic origin, May 2013
Lack of need, health and safety concerns fuel cut backs, deter some adults entirely
Figure 6: Top three reasons for not drinking energy drinks or energy shots, May 2013
Teen consumption also declining, complicating category’s future
Figure 7: Personal consumption of energy drinks among teens, October 2007-November 2012
What we think
ISSUES AND INSIGHTS
How can manufacturers allay consumers’ safety and health concerns?
Insight: Make education an integral part of marketing
Can the declining energy shot segment be revitalized?
Insight: Promotions, new products, and brand extensions could reverse slump
Following a boost in sales, are energy mixes the future of the category?
Insight: Mixes could bring in new users with the promise of customization
Can non-users be convinced to try energy beverages?
Insight: Assert safety, productivity of existing products while creating new options
TREND APPLICATIONS
Trend: Life Hacking
Trend: Supernanny State
Mintel Futures: Brand Intervention
MARKET SIZE AND FORECAST
Key points
Category continues upward trajectory despite stagnant use, controversy
Figure 8: Total U.S. retail sales and forecast of energy drinks, shots, and mixes, at current prices, 2008-18
Figure 9: Total U.S. retail sales and forecast of energy drinks, shots, and mixes, at inflation-adjusted prices, 2008-18
Fan chart forecast
Figure 10: Total U.S. sales and fan chart forecast of energy drinks, shots, and mixes, at current prices, 2008-18
MARKET DRIVERS
Key points
Lawsuits, proposed bans continue, creating a challenging marketplace
Lower unemployment rates could boost category sales
Figure 11: Personal consumption of energy drinks and/or energy shots, by employment, May 2013
Consumption among young adults fuels category; teen use dropping
Figure 12: Personal consumption of energy drinks and/or energy shots, by generations, May 2013
Figure 13: Personal consumption of energy drinks among teens aged 12-17, October 2007-November 2012
Figure 14: Personal consumption of energy drinks, October 2007-November 2012
Multicultural populations continue to see substantial growth
Figure 15: Personal consumption of energy drinks and/or energy shots, by race and Hispanic origin, May 2013
Figure 16: Personal consumption of energy drinks, by race/Hispanic origin, January 2012-March 2013
COMPETITIVE CONTEXT
Key points
Time of day helps consumers choose their consumable energy choices
Figure 17: Timing and choice of beverages and foods consumed for energy, May 2013
Figure 18: Timing and choice of energy drinks and/or energy shots consumed for energy, May 2013
Energy claims expand into other food, drink categories
SEGMENT PERFORMANCE
Key points
Energy drinks rule category, but energy mixes are shooting stars
Figure 19: Total U.S. retail sales of energy drinks, shots, and mixes, by segment, at current prices, 2011 and 2013
Customization edges out convenience: Mixes to surpass shots in 2016
Figure 20: Total U.S. sales and forecast of energy drinks, shots, and mixes, by segment, 2008-18
RETAIL CHANNELS
Key points
Price, convenience of other retail channel wins over energy-seekers
Figure 21: Total U.S. retail sales of energy beverages, by channel, at current prices, 2011-13
Rise of other retail channel exceeds category’s growth trajectory
Figure 22: Total U.S. retail sales of energy beverages, by channel, at current prices, 2008-13
Mass merchandise, club stores popular among energy shot buyers
Figure 23: Retail channels where energy drinks/shots are purchased, May 2013
Gas station, convenience stores have a niche with younger buyers
Figure 24: Retail channels where energy beverages are purchased, by gender and age, May 2013
Supermarkets top choice in Northeast, West; Walmart in Midwest, South
Figure 25: Retail channels where energy beverages are purchased, by gender and age, May 2013
LEADING COMPANIES
Key points
Red Bull maintains top spot, while Monster and Kraft gain share
Figure 26: MULO sales of energy drinks, shots, and mixes, by leading companies, rolling 52 weeks 2012 and 2013
BRAND SHARE—ENERGY DRINKS
Key points
No-calorie, multi-functional, natural accelerate energy drink segment
Figure 27: MULO sales of energy drinks, by leading companies, rolling 52 weeks 2012 and 2013
Editions expand Red Bull’s portfolio with three flavored options
Consumers say ‘yes’ to Monster Rehab, zero-calorie line extensions
PepsiCo encounters static with re-brand of Amp portfolio
Asians more open to a range of brands, blacks most brand loyal
Figure 28: Brand consumption of energy drinks, by race/Hispanic origin, January 2012-March 2013
Figure 29: Brand consumption of energy drinks, by Hispanic origin and age, January 2012-March 2013
Monster outranks Red Bull among teens, youngest adults
Figure 30: Brand consumption of energy drinks, by age, January 2012-March 2013
Figure 31: Brand consumption of energy drinks, by gender and age, October 2011-November 2012
BRAND SHARE—ENERGY SHOTS
Key points
Leading brands hang on as energy shot sales hit a slump
Figure 32: MULO sales of energy drinks, by leading companies, rolling 52 weeks 2012 and 2013
5-Hour Energy users also active in energy drink segment
Figure 33: Any personal consumption of energy drinks and/or energy shots, by brands, May 2013
BRAND SHARE—ENERGY MIXES
Key points
Kraft’s MiO Energy revitalizes energy mix segment with liquid format
Figure 34: MULO sales of energy drink mixes, by leading companies, rolling 52 weeks 2012 and 2013
Energy mixes enjoy high crossover among energy beverage users
INNOVATIONS AND INNOVATORS
New products, range extensions continue to lead energy innovations
Figure 35: U.S. energy drink and shot launches, by launch type, 2007-13*
Energy drinks make up more than half of launches, mixes growing
Flavor innovations broaden appeal with sour, sweet additions
Packaging addresses serving concerns, increases on-shelf appeal
Handful of U.S., global products opt for energy without the caffeine
MARKETING STRATEGIES
Overview of the brand landscape
Brand analysis: Red Bull
TV presence
Figure 36: Red Bull, “Beyond Limits” television ad, 2012-13
Figure 37: Red Bull, “Big Waves” television ad, 2012-13
Brand analysis: 5-Hour Energy
Online initiatives
TV presence
Figure 38: 5-Hour Energy, “Great Combination,” 2013
Figure 39: 5-Hour Energy, “Energy Galore,” 2012-13
Brand analysis: NOS
TV presence
Figure 40: NOS energy drink, “No Nonsense Hit” television ad, 2012-13
SOCIAL MEDIA
Key points
 KEY SOCIAL MEDIA METRICS
Figure 41: Key brand metrics, energy drinks/shots brands, July 2013
Market overview
Brand usage and awareness
Figure 42: Usage and awareness of selected energy drink and/or energy shot brands, July 2013
Interaction with brands
Figure 43: Interaction with selected energy drink and/or energy shot brands, July 2013
Online conversations
Figure 44: Online conversations on selected energy drink and/or energy shot brands, June 21-July 20, 2013
Where are people talking about energy drinks and shot brands?
Figure 45: Online conversations on selected energy drink and/or energy shot brands, by page type, June 21-July 20, 2013
What are people talking about?
Figure 46: Types of conversations around selected energy drink and/or energy shot brands, June 21-July 20, 2013
Figure 47: Types of conversations around selected energy drink and/or energy shot brands, by day, June 21-July 20, 2013
Figure 48: Types of conversations around selected energy drink and/or energy shot brands, by page type June 21-July 20, 2013
 BRAND ANALYSIS
Monster
Figure 49: Monster key social media indicators, July 2013
Key online campaigns
What we think
Red Bull
Figure 50: Red Bull key social media indicators, July 2013
Key online campaigns
What we think
5-Hour Energy
Figure 51: 5-Hour Energy key social media indicators, July 2013
Key online campaigns
What we think
Rockstar
Figure 52: Rockstar key social media indicators, July 2013
Key online campaigns
What we think
NOS
Figure 53: NOS key social media indicators, July 2013
Key online campaigns
What we think
Amp Energy
Figure 54: Amp Energy key social media indicators, July 2013
Key online campaigns
What we think
THE CONSUMER—ADULT ENERGY BEVERAGE USAGE
Key points
Men more likely than women to use energy beverages, also cutting back
Figure 55: Personal consumption of energy drinks and/or energy shots, by gender, May 2013
People aged 18-24 equally likely to drink fewer energy drinks as more
Figure 56: Personal consumption of energy drinks and/or energy shots, by age, May 2013
Men more likely than women to drink both energy drinks and shots
Figure 57: Any personal consumption (net) of energy drinks and/or energy shots, by segment, May 2013
Men aged 18-34 report highest volume consumption among genders
Figure 58: Personal consumption of energy drinks, by gender and age, January 2012-March 2013
Highest volume reported by respondents with lower household incomes
Figure 59: Personal consumption of energy drinks, by household income, January 2012-March 2013
Volume consumption trending downward, but not at dramatic rates
Figure 60: Personal consumption of energy drinks/shots, February 2008-March 2013
Afternoon leading occasion when users reach for energy
Figure 61: Afternoon choice of beverages and foods consumed for energy, by gender, May 2013
Figure 62: Afternoon consumption of energy drinks and/or energy shots for energy, by gender, May 2013
THE CONSUMER—ATTITUDES TOWARD ENERGY BEVERAGES
Key points
Users believe energy beverages are more effective than other drinks
Figure 63: Reasons for personal consumption of energy beverages, by gender and age, May 2013
Reductions in energy beverage consumption spurred by health, cost
Figure 64: Reasons for consuming fewer energy drinks/energy shots, May 2013
Key consumers ages 18-34 have been influenced by negative news
Figure 65: Reasons for consuming fewer energy drinks, by age, May 2013
Women more likely to favor safety labeling, sales restrictions
Figure 66: Attitudes toward safety of energy beverages (any agree), by gender and age, May 2013
Energy drinks more likely than shots to require daily consumption
Figure 67: Attitudes toward usage and trial of energy beverages (any agree), by energy drink/shot users (any consumption), May 2013
Energy drink users, shot drinkers show clear delineation in preferences
Figure 68: Attitudes toward of energy drinks and energy shots (any agree), by energy drink/shot users (any consumption), May 2013
THE CONSUMER—ATTITUDES OF NON-USERS
Key points
Lack of need, health concerns are main detractors for drinks or shots
Figure 69: Reasons for not consuming energy drinks or energy shots, May 2013
Health concerns more likely to dissuade women than men
Figure 70: Reasons for not consuming energy drinks, by gender, May 2013
Figure 71: Reasons for not consuming energy shots, by gender, May 2013
Target demographic of Matrix and Millennials also staying away
Figure 72: Reasons for not consuming energy drinks, by generations, May 2013
Manufacturers also have opportunity to target busy seniors
Respondents with children alarmed by ingredients, impact
Figure 73: Reasons for not consuming energy drinks, by presence of children in household, May 2013
Figure 74: Reasons for not consuming energy shots, by presence of children in household, May 2013
THE CONSUMER—TEEN USAGE AND ATTITUDES
Key points
Despite declining usage, energy remains popular with teens aged 15-17
Figure 75: Personal consumption of energy drinks, by gender and age, October 2011-November 2012
Figure 76: Personal volume consumption of energy drinks, by gender and age, October 2011-November 2012
Other race teens are most likely to drink energy beverages
Figure 77: Personal consumption of energy drinks, by race and Hispanic origin, October 2011-November 2012
Teens unlikely to prioritize energy beverages when in need of a boost
Figure 78: Food or drink consumed by teens aged 12-17 for energy, June 2013
Boys aged 15-17 most likely to reach for energy drinks
Figure 79: Food or drink consumed by teens aged 12-17 for energy, by gender and age, June 2013
Energy drinks more effective than other food and drinks, say teen users
Figure 80: Reasons for consuming energy drinks among teens aged 12-17, June 2013
RACE AND HISPANIC ORIGIN
Key points
Other race, Hispanics active in both energy beverage segments
Figure 81: Any personal consumption (net) of energy drinks and/or energy shots, by segment, May 2013
Blacks energized by convenience, other race by taste, refreshment
Figure 82: Reasons for personal consumption of energy beverages, by race/Hispanic origin, May 2013
Young Hispanics report higher volume use than non-Hispanics
Figure 83: Personal consumption of energy drinks, Hispanic origin and age, January 2012-March 2013
Hispanics slightly more swayed by non-energy options for p.m. boost
Figure 84: Afternoon choice of beverages and foods consumed for energy, by Hispanic origin, May 2013
Figure 85: Afternoon choice of energy drinks and/or energy shots consumed for energy, by Hispanic origin, May 2013
CLUSTER ANALYSIS
Fatigue Fighters
Demographics
Characteristics
Opportunity
Alternative Seekers
Demographics
Characteristics
Opportunity
Drink Devotees
Demographics
Characteristics
Opportunity
Cluster characteristic tables
Figure 86: Target clusters, May 2013
Figure 87: Personal consumption of energy drinks and/or energy shots, by target clusters, May 2013
Figure 88: Any personal consumption (net) of energy drinks and/or energy shots, by segment, by target clusters, May 2013
Figure 89: Retail channels where energy beverages are purchased, by target clusters, May 2013
Figure 90: Reasons for personal consumption of energy beverages, by target clusters, May 2013
Figure 91: Timing and choice of beverages and foods consumed for energy, by target clusters, May 2013
Cluster demographic tables
Figure 92: Target clusters, by demographic, May 2013
Cluster methodology
Figure 93: Agreement with attitudes toward energy beverages, by target clusters, May 2013
KEY DRIVER ANALYSIS
Methodology
Innovation, fun reputation keeps consumers active in category
Figure 94: Key drivers of drinking more or the same amount of energy drinks and/or shots, August 2013
Users embrace brands for existing ranges, innovation welcomed by all
Figure 95: Key drivers of drinking energy drink and/or energy shots, by brand, August 2013
INFORMATION RESOURCES INC. BUILDERS PANEL DATA
Overview—Energy drinks
Consumer insights on key purchase measures
Brand map
Figure 96: Brand map, selected brands of single-serving non-aseptic energy drinks buying rate, by household penetration, 2012*
Brand leader characteristics
Key purchase measures
Figure 97: Key purchase measures for the top brands of single-serving non-aseptic energy drinks, by household penetration, 2012*
APPENDIX—FOOD AND BEVERAGE MARKET DRIVERS
Consumer confidence
Figure 98: University of Michigan’s index of consumer sentiment (ICS), 2007-13
Unemployment
Figure 99: U.S. unemployment rate, by month, 2002-13
Figure 100: U.S. unemployment and underemployment rates, 2007-13
Figure 101: Number of employed civilians in U.S., in thousands, 2007-13
Shifting U.S. demographics
Figure 102: U.S. population, by age, 2008-18
Figure 103: U.S. households, by presence of own children, 2002-12
Racial, ethnic population growth
Figure 104: U.S. population, by race and Hispanic origin, 2008, 2013, and 2018
Figure 105: Households with children, by race and Hispanic origin of householder, 2012
APPENDIX—OTHER USEFUL CONSUMER TABLES
Segment performance
Figure 106: Total U.S. sales and forecast of energy drinks, at current prices, 2008-18
Figure 107: Total U.S. sales and forecast of energy shots, at current prices, 2008-18
Figure 108: Total U.S. sales and forecast of energy mixes, at current prices, 2008-18
The Consumer—Adult energy beverage usage
Figure 109: Any personal consumption of energy drinks and/or energy shots, by segment, May 2013
Figure 110: Personal consumption of energy drinks and/or energy shots, by presence of children in household, May 2013
Figure 111: Personal consumption of energy drinks and/or energy shots, by census region, January 2012-March 2013
Figure 112: Personal consumption of energy drinks, by marital status with children, January 2012-March 2013
Figure 113: Morning choice of beverages and foods consumed for energy, by gender, May 2013
Figure 114: Morning choice of energy drinks and/or energy shots consumed for energy, by gender, May 2013
Figure 115: Evening choice of beverages and foods consumed for energy, by gender, May 2013
Figure 116: Evening choice of energy drinks and/or energy shots consumed for energy, by gender, May 2013
Figure 117: Between meals choice of beverages and foods consumed for energy, by gender, May 2013
Figure 118: Between meals choice of energy drinks and/or energy shots consumed for energy, by gender, May 2013
The Consumer—Attitudes toward energy beverages
Figure 119: Reasons for any personal consumption of energy drinks/shots, May 2013
Figure 120: Reasons for personal consumption of energy beverages, by region, May 2013
Figure 121: Attitudes toward energy beverages (any agree), by gender, May 2013
Figure 122: Attitudes toward safety and sales of energy beverages (any agree), by energy drink/shot users (any consumption), May 2013
The consumer—Attitudes of non-users
Figure 123: Reasons for not consuming energy shot, by generations, May 2013
Figure 124: Reasons for not consuming energy drinks, by census region, May 2013
Figure 125: Reasons for not consuming energy drinks, by household income, May 2013
The consumer—Teen usage and attitudes
Figure 126: Brand consumption of energy drinks, by Hispanic origin, October 2011-November 2012
Race and Hispanic origin
Figure 127: Brand consumption of energy drinks, by race and household income, January 2012-March 2013
APPENDIX—SOCIAL MEDIA
Brand usage and awareness
Figure 128: Brand usage or awareness, May 2013
Figure 129: Red bull usage or awareness, by demographics, May 2013
Figure 130: Monster usage or awareness, by demographics, May 2013
Figure 131: Rockstar usage or awareness, by demographics, May 2013
Figure 132: 5-Hour Energy usage or awareness, by demographics, May 2013
Figure 133: NOS usage or awareness, by demographics, May 2013
Figure 134: Amp energy usage or awareness, by demographics, May 2013
Activities done
Figure 135: Activities done, May 2013
Figure 136: Red bull – Activities done, by demographics, May 2013
Figure 137: Monster – Activities done, by demographics, May 2013
Figure 138: Rockstar – Activities done, by demographics, May 2013
Figure 139: 5-Hour energy – Activities done, by demographics, May 2013
Figure 140: NOS – Activities done, by demographics, May 2013
Figure 141: Amp energy – Activities done, by demographics, May 2013
Online conversations
Figure 142: Online conversations on selected energy drinks/shots brands, June 21-July 20, 2013
Figure 143: Online conversations on selected energy drinks/shots brands, by page type, June 21-July 20, 2013
Figure 144: Types of conversations around selected energy drinks/shots brands, June 21-July 20, 2013
Figure 145: Types of conversations around selected energy drinks/shots brands, by day, June 21-July 20, 2013
Figure 146: Types of conversations around selected energy drinks/shots brands, by page type June 21-July 20, 2013
APPENDIX—KEY DRIVER ANALYSIS
Interpretation of results
Figure 147: Drivers of drinking energy drinks and/or energy shots – key driver output, August 2013
Figure 148: Drivers of drinking Red Bull energy drink – key driver output, August 2013
Figure 149: Drivers of drinking Monster energy drink – key driver output, August 2013
Figure 150: Drivers of drinking Rockstar energy drink – key driver output, August 2013
Figure 151: Drivers of drinking 5-Hour energy shot – key driver output, August 2013
APPENDIX—INFORMATION RESOURCES INC. BUILDERS PANEL DATA DEFINITIONS
Information Resources Inc. Consumer Network Metrics
APPENDIX—TRADE ASSOCIATIONS

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