Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Growth set to slow in 2016
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- Figure 1: Forecast of UK sales of sports and energy drinks, by value, 2011-21
- Impending sugar tax increases spotlight on the ingredient
- Drop in 16-24 males poses a threat to the market
- Companies and brands
- Lucozade’s dominance continues
- Energy drinks lead by NPD and adspend
- The consumer
- Around half of UK adults drink sports and energy drinks, rising to 80% of young men
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- Figure 2: Usage of sports and energy drinks, by gender and age, June 2016
- Sports drinks and energy drinks need to re-enforce product claims
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- Figure 3: Reasons to drink selected non-alcoholic drinks, June 2016
- Branded variants are the most popular and drunk the most frequently
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- Figure 4: Frequency of usage of sports and energy drinks, June 2016
- Blurring the lines between categories – interest in water
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- Figure 5: Interest in selected ingredients to be included in sports and energy drinks, June 2016
- Sugar concerns affect sports and energy drinks
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- Figure 6: Attitudes towards sports and energy drinks, June 2016
- Almost two in five would not change their habits following sugar tax
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- Figure 7: Effects of the sugar tax on sports and energy drinkers' behaviour, June 2016
- What we think
Issues and Insights
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- The sugar tax provides a challenge and an opportunity
- The facts
- The implications
- The trend for category blurring opens the market up to a wider audience
- The facts
- The implications
- Low-caffeine energy drinks could provide an alternative solution
- The facts
- The implications
The Market – What You Need to Know
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- Growth set to slow in 2016
- Sports drinks continue to struggle
- Energy drinks prop up the market but see sales plateau
- Impending sugar tax increases spotlight on the ingredient
- Drop in 16-24 males poses a threat to the market
Market Size and Forecast and Market Segmentation
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- Growth set to slow in 2016
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- Figure 8: Total UK volume and value sales of sports and energy drinks, 2011-21
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- Figure 9: Forecast of UK sales of sports and energy drinks, by value, 2011-21
- Figure 10: Forecast of UK sales of sports and energy drinks, by volume, 2011-21
- Sports drinks continue to struggle
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- Figure 11: UK volume and value sales of sports drinks, 2011-21
- Figure 12: Forecast of UK sales of sports drinks, by value, 2011-21
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- Figure 13: Forecast of UK sales of sports drinks, by volume, 2011-21
- Energy drinks prop up the market but see sales plateau
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- Figure 14: UK volume and value sales of energy drinks, 2011-21
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- Figure 15: Forecast of UK sales of energy drinks, by value, 2011-21
- Figure 16: Forecast of UK sales of energy drinks, by volume, 2011-21
- Forecast methodology
Market Drivers
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- Impending sugar tax increases spotlight on the ingredient
- Local government names and shames drinks through health warning
- European Parliament vetoes caffeine claims, citing sugar content as a reason
- Drop in 16-24 males poses a threat to the market
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- Figure 17: Trends in the age structure of the UK male population, 2011-21
- Half of adults exercise at least twice a week
Key Players – What You Need to Know
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- Lucozade’s sports drinks dominance continues
- Lucozade leads the energy market, followed by Red Bull
- Energy drinks lead by NPD
- Energy drinks dominate spend
Market Share
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- Lucozade’s sports drinks dominance continues
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- Figure 18: UK retail sales of leading brands in sports drinks, by value and volume, 2014/15* and 2015/16**
- Lucozade leads the energy market, reporting strong volumes
- Red Bull grows value and volumes by more than 6%
- Challenger brands look to innovation to drive engagement
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- Figure 19: UK retail sales of leading brands in energy drinks, by value and volume, 2014/15* and 2015/16**
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- Figure 20: UK retail sales of leading manufacturers in energy drinks, by value and volume, 2014/15* and 2015/16**
Launch Activity and Innovation
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- Energy drinks lead by NPD
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- Figure 21: Share of new product launches within the UK sports and energy drinks market, by sub-category, 2012-16
- Packaging pushes convenience
- Health remains an issue
- L/N/R sugar and calorie claims rise in 2016
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- Figure 22: Share of new product launches within the UK sports and energy drinks market, by L/N/R sugar and calories, 2012-16
- Lucozade launches Zero
- Monster goes sugar-free
- Stevia provides an alternative to sugar
- A natural proposition should appeal to those looking to holistic health
- Organic claims rise in 2016
- Flavour remains a way to offer newness
- Tropical flavours continue to draw attention…
- …as well as ‘punch’ flavours
- Category blurring continues in the global market
- Monster looks into ‘super soda’ and hydration
- CSD and water brands explore high-caffeine variants
- Coffee and tea provide competition
- Milk used as an ingredient in energy drinks
Advertising and Marketing Activity
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- Energy drinks dominate spend
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- Figure 23: Total above-the line, online display and direct mail advertising expenditure on sports and energy drinks by the leading operators, 2012-16
- Lucozade continues to push the Find Your Flow campaign
- Supported by social media
- Catering to the health-conscious with Zero
- Inspiring sports participation through Summer of Movement sponsorship campaign
- Red Bull and Relentless focus on music…
- …and gaming
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Sports drinks and energy drinks are seen to not deliver on claims
- Around half of UK adults drink sports and energy drinks, especially young men
- Branded variants are the most popular and drunk the most frequently
- Blurring the lines between categories – interest in water
- Sugar concerns affect sports and energy drinks
- Almost two in five would not change their habits following sugar tax
Reasons to Drink Non-Alcoholic Drinks
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- Sports drinks and energy drinks are seen to not deliver on claims
- Rehydration is top reason to use sports drinks
- Energy drinks retain pick-me-up connotation
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- Figure 24: Reasons to drink selected non-alcoholic drinks, June 2016
Usage of Sports and Energy Drinks
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- Around half of UK adults drink sports and energy drinks, especially young men
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- Figure 25: Usage of sports and energy drinks, by gender and age, June 2016
- Branded variants are the most popular and drunk the most frequently
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- Figure 26: Frequency of usage of sports and energy drinks, June 2016
- Standard variants are most popular
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- Figure 27: Usage of sports and energy drinks, by type, June 2016
- L/N/R formats attract women and the over-45s
- Limited crossover across standard and L/N/R versions
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- Figure 28: Crossover in usage of sports and energy drinks, by type, June 2016
Ingredient Enticements
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- Blurring the lines between categories – interest in water
- Tea and juice can play a role in sports and energy drinks
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- Figure 29: Interest in selected ingredients to be included in sports and energy drinks, June 2016
Attitudes towards Sports and Energy Drinks
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- Sugar concerns affect sports and energy drinks
- Alternative sources of sweetness appeal
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- Figure 30: Attitudes towards sports and energy drinks, June 2016
- Origin of ingredients interests 37%
- Low-caffeine formats appeal to 38% of sports/energy drinks users
- Herbal/botanical flavours enjoy a better-for-you image
- Minority demand for more sports and energy drinks at foodservice outlets
Effects of the Sugar Tax on Sports and Energy Drinks Users' Behaviour
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- Almost two in five would not change their habits following sugar tax
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- Figure 31: Effects of the sugar tax on sports and energy drinkers' behaviour, June 2016
- A fifth would stop drinking sugary versions altogether
- Users’ plans to switch provide an incentive for diversification
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- Figure 32: Predicted changes in behaviour patterns of those cutting back due to sugar tax, June 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Figure 33: Best- and worst-case forecast of total UK value sales of sports and energy drinks, 2016-21
- Figure 34: Best- and worst-case forecast of total UK volume sales of sports and energy drinks, 2016-21
- Figure 35: Best- and worst-case forecast of UK value sales of sports drinks, 2016-21
- Figure 36: Best- and worst-case forecast of UK volume sales of sports drinks, 2016-21
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- Figure 37: Best- and worst-case forecast of UK value sales of energy drinks, 2016-21
- Figure 38: Best- and worst-case forecast of UK volume sales of energy drinks, 2016-21
- Forecast Methodology
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Appendix – Market Drivers
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- Figure 39: Trends in the age structure of the UK female population, 2011-21
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Appendix – Launch Activity and Innovation
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- Figure 40: Share of launches in the UK sports and energy drinks market, by company, 2012-16 (sorted by 2015)
- Figure 41: Share of launches in the UK sports and energy drinks market, by flavour, 2012-16 (sorted by 2015)
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