Sports and Energy Drinks - UK - July 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Sales grow in 2018 despite SDIL
Volumes expected to edge upwards
Figure 1: Forecast of UK value sales of sports and energy drinks, 2014-24
Energy drinks sales robust, heatwave reverses decline for sports drinks
Figure 2: UK value sales of sports and energy drinks, by segment, 2017-19
‘Sugar Tax’ comes into force
Proposed under-16s energy drink ban a threat
Companies and brands
Red Bull overtakes Lucozade Energy
Figure 3: Leading brands’ value sales in the UK retail energy drinks market, 2016/17-2018/19
Lucozade Sport continues to dominate in sports drinks
Sugar-related claims rise in launches
Competition picks up in natural variants
Coca-Cola and Irn-Bru move into energy drinks
Advertising spend hits four-year high
Lucozade leads on trust, quality and as refreshing
The consumer
The young and men are key users
Figure 4: Frequency of drinking sports drinks, energy drinks and energy shots, May 2019
Diet variants have a lead in energy drinks
Figure 5: Types of sports and energy drinks drunk, May 2019
Exercise is key driver of usage
Usage occasions are diverse
Figure 6: When sports and energy drinks are drunk, May 2019
Uptake limited by competition from other drinks
Figure 7: Reasons for not drinking sports drinks, May 2019
Sugar content is a concern
Figure 8: Reasons for not drinking energy drinks, May 2019
High level of interest in flavour among users
Figure 9: Interest in flavour types in sports and energy drinks, May 2019
No added sugar and all-natural ingredients attract sizeable interest
Scope for further innovation around brain function claims
Figure 10: Interest in ingredients and benefits in sports and energy drinks, May 2019
Brand loyalty is high
Figure 11: Behaviours relating to sports and energy drinks, May 2019
Many sports and energy drinks users see sugar as a necessary ingredient
Figure 12: Attitudes towards sports and energy drinks, May 2019
What we think
ISSUES AND INSIGHTS
Perceptions of sugar as both a barrier and a necessary ingredient dictate a balanced approach
The facts
The implications
Interest in ingredient information and all-natural claim highlights scope to tackle artificial image
The facts
The implications
Opportunity to tap buzz around gut health and brain function support
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Sales grow in 2018 despite SDIL
Volumes expected to edge upwards
Energy drinks sales robust, heatwave reverses decline for sports drinks
‘Sugar Tax’ comes into force
Proposed under-16s energy drink ban a threat
MARKET SIZE AND FORECAST
Sales appear undented by SDIL
Figure 13: UK value and volume sales of sports and energy drinks, at current and constant prices, 2014-24
The future
Figure 14: Forecast of UK value sales of sports and energy drinks, 2014-24
Figure 15: Forecast of UK volume sales of sports and energy drinks, 2014-24
Forecast methodology
MARKET SEGMENTATION
Energy drinks enjoy growth
Impact of SDIL and voluntary ban masked by heatwave
Sports drinks return to growth
Figure 16: Total UK value and volume sales of sports and energy drinks, by segment, 2017-19
MARKET DRIVERS
Spotlight on sugar continues in fight against obesity
Soft Drinks Industry Levy comes into force
Category ramps up L/N/R sugar activity
Under-16s energy drink ban remains on the cards
Reports give energy drinks some reprieve
Ageing population
Figure 17: Trends in the age structure of the UK population, 2014-19 and 2019-24
No changes in overall exercise levels
Tiredness is endemic
Summer heatwave boosts 2018 soft drinks sales
Figure 18: Total hours of sunshine in the UK, by month, 2013-18
Plastic waste is in the spotlight
Government considers bottle return scheme and plastic packaging tax
Threat from public water refill points
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Red Bull overtakes Lucozade Energy
Lucozade Sport continues to dominate in sports drinks
Sugar-related claims rise in launches
Competition picks up in natural variants
Coca-Cola and Irn-Bru move into energy drinks
Advertising spend hits four-year high
Lucozade leads on trust, quality and as refreshing
MARKET SHARE
Red Bull claims energy drinks crown
Reformulation sees Lucozade Energy’s sales dip
Figure 19: Leading brands’ sales and shares in the UK retail energy drinks market, 2016/17-2018/19
Monster continues to grow share
Medium-sized brands lose out
Natural energy brand Purdey’s posts strong growth
Lucozade Sport continues to dominate in sports drinks
Figure 20: Leading brands’ sales and shares in the UK retail sports drinks market, 2016/17-2018/19
LAUNCH ACTIVITY AND INNOVATION
Energy drinks’ share of soft drinks launches rise
Figure 21: New sports and energy drinks product launches, as a share of total soft drinks launches, 2015-19
Sugar-related claims rise
Figure 22: Share of new product launches in the sports and energy drinks market making a sugar-related claim, 2015-19
Competition picks up in natural variants
Brands look to green coffee for ‘natural energy’ positioning
Figure 23: Examples of launches positioned as natural in the UK energy drinks market, 2018 and 2019
Guayusa enters the UK energy drinks market
Sports drinks look to coconut water and seawater for natural formulation
Energy drink brands target new usage occasions
Rockstar targets mornings
Monster enters RTD coffee
Red Bull moves into CSDs
Figure 24: Examples of energy drink brands launching new products targeted at new usage occasions, 2018 and 2019
Coca-Cola and Irn-Bru move into energy drinks
Radnor launches energy water
Coca-Cola brings Aquarius to the UK
Figure 25: New products from Coca-Cola in the UK sports and energy drinks market, 2019
Brands continue to engage fans with flavour extensions
Figure 26: Examples of flavour NPD in the UK energy drinks market, 2018 and 2019
Lucozade Sport trials edible pods
START-UPS AND DISRUPTORS CASE STUDY – UNROOTED FRESH ENERGY
Company overview
What is it?
Figure 27: Sample of Unrooted Product, July 2019
Founder’s story
Sources of funding and support
Mintel analyst view
Mintel Trends
Why it could succeed
Why it could fail
The verdict
Purchase Intelligence
Figure 28: Perception of Unrooted Energy Drinks compared to energy drinks with similar natural claims, April 2018-July 2019
Product details
Figure 29: Examples of Unrooted product listing, 2019
Figure 30: Examples of Unrooted Launches, 2019
Stockists
Media profile
Figure 31: Social media figures for Unrooted, July 2019
START-UPS AND DISRUPTORS CASE STUDY – MATCHA WORKS
Company overview
What is it?
Figure 32: Example of Matcha Works product, December 2018
Company mission statement
Founders’ story
Sources of funding and support
Mintel analyst view
Mintel Trends
Why it could succeed
Why it could fail
The verdict
Purchase Intelligence
Figure 33: Perception of Matcha Works’ drinks compared to selected energy drinks with similar natural claims, April 2018-July 2019
Product details
Figure 34: Sample of Matcha Works product listing, 2018-19
Figure 35: Samples of Matcha Works Launches, 2018-19
Stockists
Media profile
Figure 36: Social media figures for Matcha Works, July 2019
ADVERTISING AND MARKETING ACTIVITY
Adspend hits four-year high
Figure 37: Total above-the-line, online display and direct mail advertising expenditure on sports and energy drinks, 2015-19
Lucozade Sport teams with Anthony Joshua to get Brits moving…
…and support flavour NPD
Lucozade Sport extends England football sponsorship to Lionesses
Figure 38: Total above-the-line, online display and direct mail advertising expenditure on sports and energy drinks, by top six advertisers (sorted by 2018), 2015-19
Lucozade Energy rekindles partnership with Tomb Raider…
…retells the story of David and Goliath…
…and shifts focus from physical to positive energy
Lucozade Zero links with Love Island
Red Bull continues to run humorous animated ads…
…and opens eSport venue in London
Red Bull aims to reinforce sport relevance with Red Bull Project Pro campaign
Carabao aims to give busy Brits an energy boost…
…and continues link with English football
Boost showcases “eclectic mix” of sport and leisure occasions…
…and links with Tinder for Valentine’s Day
Natural energy brands ramp up activity
Tenzing launches first above-the-line campaign
Purdey’s launches TV advert
Monster Energy renews partnership with Call of Duty: Black Ops
Rockstar links with Destiny 2: Forsaken and Creed II
New entrant Coca-Cola Energy supported by heavyweight campaign
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 39: Attitudes towards and usage of selected brands, June 2019
Key brand metrics
Figure 40: Key metrics for selected brands, June 2019
Brand attitudes: Lucozade leads on trust and quality perceptions
Figure 41: Attitudes, by brand, June 2019
Brand personality: Fun is a central trait for the segment
Figure 42: Brand personality – macro image, June 2019
Lucozade seen as most traditional, authentic and refreshing
Figure 43: Brand personality – micro image, June 2019
Brand analysis
Lucozade sets the benchmark high for its competitors
Figure 44: User profile of Lucozade, June 2019
Monster has a weaker image and is more divisive
Figure 45: User profile of Monster, June 2019
Carabao has sizeable awareness despite short time on the market
Figure 46: User profile of Carabao, June 2019
Rockstar’s image impaired by low awareness
Figure 47: User profile of Rockstar, June 2019
Red Bull lead on fun and cool, but is also seen as overrated
Figure 48: User profile of Red Bull, June 2019
THE CONSUMER – WHAT YOU NEED TO KNOW
The young and men are key users
Diet variants have a lead in energy drinks
Exercise is key driver of usage
Usage occasions are diverse
Uptake limited by competition from other drinks
Sugar content is a concern
High level of interest in flavour among users
No added sugar and all-natural ingredients attract sizeable interest
Scope for further innovation around brain function claims
Brand loyalty is high
Many sports and energy drinks users see sugar as a necessary ingredient
USAGE OF SPORTS AND ENERGY DRINKS
Category used by two in five adults
Figure 49: Frequency of drinking sports drinks, energy drinks and energy shots, May 2019
The young and men are key user groups
Usage also higher among urbanites, affluent and parents
Figure 50: Frequency of drinking sports drinks, energy drinks and energy shots, by age and gender, May 2019
Diet variants has a lead in energy drinks
Figure 51: Types of sports and energy drinks drunk, May 2019
OCCASIONS FOR DRINKING SPORTS AND ENERGY DRINKS
Exercise is key driver of usage
Figure 52: When sports and energy drinks are drunk, May 2019
Usage occasions are diverse
Men have the widest repertoires
Gaming is when three in 10 young men reach for sports or energy drinks
Higher usage among Twitch users
Marked growth potential in linking with gaming
Scope for further NPD targeting gamers
Figure 53: Mtn Dew Amp Game Fuel energy drink range, USA, 2019
BARRIERS TO DRINKING SPORTS AND ENERGY DRINKS
Sports drinks need to demonstrate tangible benefits
Figure 54: Reasons for not drinking sports drinks, May 2019
Competition from coffee and tea curb usage of energy drinks
Energy drinks look to target morning occasions
Figure 55: Reasons for not drinking energy drinks, May 2019
Sugar content is a concern
Artificial image prevails
An all-natural positioning can attract non-users
Figure 56: Purchase intent towards all-natural energy drinks in comparison to all UK energy drinks, by category purchase and usage habits, April 2018-May 2019
Category blurring creates competition
INTEREST IN SPORTS AND ENERGY DRINKS FLAVOURS
High level of interest in flavours among users
Exotic/tropical fruits attracts most interest
Figure 57: Interest in flavour types in sports and energy drinks, May 2019
Scope for cross-over into coffee and tea
RTD coffee and coffee flavours hold potential
Tea extracts are gaining prominence in energy drinks
Herbs and spices can offer functional connotations
Beyond ginger, opportunities for turmeric and chilli
INTEREST IN SPORTS AND ENERGY DRINKS CONCEPTS
No added sugar and all-natural ingredients attract sizeable interest
Figure 58: Interest in ingredients and benefits in sports and energy drinks, May 2019
Gut health support appeals widely
Inspiration for delivering digestive claims can be found outside the category with fibre
Spotlight on ‘good bacteria’ can work in favour of fermented drinks
Scope for further innovation around brain function claims
Interest in brain function signals opportunity for nootropics
SPORTS AND ENERGY DRINKS BEHAVIOURS
Brand loyalty is high
Figure 59: Behaviours relating to sports and energy drinks, May 2019
Educating people on the role of ingredients can drive engagement
Figure 60: Examples of ingredient transparency in UK energy drinks, 2019
Energy drinks are seen to carry social stigma by some
Figure 61: Agreement with behaviours relating to sports and energy drinks, by usage of sports and energy drinks, May 2019
ATTITUDES TOWARDS SPORTS AND ENERGY DRINKS
One in three see sugar as needed in sports and energy drinks
Figure 62: Attitudes towards sports and energy drinks, May 2019
Opportunity for wellness drinks with an energy proposition tailored to under-16s
Figure 63: Agreement with attitudes towards sports and energy drinks, by usage of sports and energy drinks, May 2019
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
Figure 64: Total UK value sales of cordials and squashes, best- and worst-case forecast, 2019-24
Figure 65: Total UK value sales of cordials and squashes, best- and worst-case forecast, 2019-24
APPENDIX – MARKET SHARE
Figure 66: Leading distributors’ sales and shares in the UK retail energy drinks market, 2016/17-2018/19
Figure 67: Leading distributors’ sales and shares in the UK retail sports drinks market, 2016/17-2018/19
APPENDIX – LAUNCH ACTIVITY AND INNOVATION
Figure 68: Share of new product launches in the UK sports and energy drinks market, by sub-category, 2015-19
Figure 69: Share of new product launches in the UK sports and energy drinks market, by primary packaging material, 2015-19
Figure 70: Share of new product launches in the UK sports and energy drinks market, by branded and private label, 2015-19
Figure 71: Share of new product launches in the UK sports and energy drinks market, by top 10 companies (sorted by 2018), 2015-19
Figure 72: Share of new product launches in the UK sports and energy drinks market, by top 15 claims (sorted by 2018), 2015-19