Energy Drinks - US - May 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Overview
Figure 1: Total US sales and fan chart forecast of energy drinks and shots, at current prices, 2013-23
The issues
Energy drinks have a Gen Z problem
Figure 2: Energy drink consumption frequency and change in consumption, February 2019
High frequency users are loyal to the market not brands
Figure 3: Energy drink attitudes, by energy drink consumption frequency, February 2019
The opportunities
Consumers are finding energy drinks that suit their needs
Figure 4: Reasons for drinking energy drinks more often, February 2019
High frequency drinkers want high energy beverages
Figure 5: Energy drink purchase motivators, by energy drink consumption frequency, February 2019
Promote both body and brain health
Figure 6: Energy drink purchase motivators, by consumers who drink energy drinks before working out, February 2019
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Future growth driven by traditional energy drinks
Busy lifestyles benefit energy drink brands
MARKET SIZE AND FORECAST
Continued growth of energy drinks market
Figure 7: Total US sales and fan chart forecast of energy drinks and shots, at current prices, 2013-23
Figure 8: Total US retail sales and forecast of energy drinks and shots, at current prices, 2013-23
MARKET BREAKDOWN
Strong performance for drinks; shots stagnate
Figure 9: Total US retail sales and forecast of energy drinks and shots, by segment, at current prices, 2013-23
Figure 10: Total US retail sales and forecast of energy drinks and shots, by segment, at current prices, 2013-23
MARKET FACTORS 
Americans are working hard
Figure 11: Average hours spent per day, working and work-related activities, among those who participate in activity, among Americans aged 15+, not seasonally adjusted, 2008-17
Figure 12: Average hours spent per day, homework and research, among those who participate in activity, among Americans aged 15+, not seasonally adjusted, 2008-17
Gen Z and Millennials are entering new life stages
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Top trending energy drinks promote fitness and high caffeine content
Strong differentiation is necessary for natural energy drinks
COMPANY AND BRAND SALES OF ENERGY DRINKS AND ENERGY SHOTS
Major brands enjoy growth
Figure 13: Multi-outlet sales of energy drinks, by leading companies and brands, rolling 52 weeks 2018 and 2019
Figure 14: Multi-outlet sales of energy shots, by leading companies and brands, rolling 52 weeks 2018 and 2019
WHAT’S WORKING?
Sugar-free energy drink sales soar
Red Bull excites loyalists with new flavors
Bang blasts away the competition
New crop of energy drink brands focuses on fitness
WHAT’S STRUGGLING?
Natural energy drinks struggle to rise above the noise
Gen Z’s love for iced coffee is an issue for energy drink brands
Figure 15: Away from home coffee consumption, any order, May 2018
Competing categories launch other energy-providing beverages
Starbucks launches an energy drink…sort of
Game on with Game Fuel
WHAT’S NEXT?
Coke puts Monster in an awkward situation
Will Monster “Reign” on Bang’s parade?
Cognitive boost without the energy
THE CONSUMER – WHAT YOU NEED TO KNOW
A small but fervent consumer base
Market growth is attributed to high frequency use consumers
Concerns over energy drink healthfulness remain
Flavor development keeps consumers engaged
BEVERAGE CONSUMPTION
It’s a young person’s market
Figure 16: Beverage consumption, February 2019
Figure 17: Beverage consumption, by gender and age, February 2019
Figure 18: Beverage consumption, by generation, February 2019
High use consumers have high energy needs
Figure 19: Beverage consumption, by energy drink consumption frequency, February 2019
Energy drink consumers get a boost from a variety of beverages
Figure 20: Beverage cross-utilization, February 2019
Figure 21: Beverage cross-utilization, February 2019
PERCEPTIONS OF ENERGY-PROVIDING DRINKS AMONG USERS 
Energy drinks face competition from coffee
Figure 22: Perceptions of energy providing drinks, among drink users, February 2019
High frequency drinkers drive positive perception of energy drinks
Figure 23: Energy drink perception, by energy drink consumption frequency, February 2019
ENERGY DRINK CONSUMPTION FREQUENCY
Energy drink consumers are high frequency drinkers
Figure 24: Energy drink consumption frequency, February 2019
Millennial men drive much of the energy drink market
Figure 25: Energy drink consumption frequency, by gender and by generation, February 2019
ENERGY DRINK CAFFEINE CONTENT CONSUMPTION
Many consumers are in the dark around energy drink caffeine content
Figure 26: Energy drink caffeine consumption, February 2019
CHANGES IN ENERGY DRINK CONSUMPTION
Older Millennials are increasing their energy drink consumption
Figure 27: Changes in energy drink consumption, February 2019
Total market growth driven by the most devoted consumers
Figure 28: Changes in energy drink consumption, by energy drink consumption frequency, February 2019
REASONS FOR DRINKING ENERGY DRINKS MORE
Busy consumers are running on empty
Figure 29: Reasons for drinking energy drinks more often, February 2019
REASONS FOR DRINKING ENERGY DRINKS LESS
Health concerns drive consumers out of the market
Figure 30: Reasons for drinking energy drinks less often, February 2019
ENERGY DRINK PURCHASE MOTIVATORS 
Provide energy that lasts
Figure 31: Energy drink purchase motivators, February 2019
Hispanics interested in a more healthful energy drink
Figure 32: Energy drink purchase motivators, by Hispanic consumers, February 2019
Give high frequency consumers the energy they want
Figure 33: Energy drink purchase motivators, by energy drink consumption frequency, February 2019
Brain health is just as important as body health to fitness consumers
Figure 34: Energy drink purchase motivators, by consumers who drink energy drinks before working out, February 2019
ENERGY DRINK ATTITUDES
High frequency drinkers aren’t brand loyalists
Figure 35: Energy drink attitudes, by energy drink consumption frequency, February 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET 
Figure 36: Total US retail sales and forecast of energy drinks and shots, at inflation-adjusted prices, 2013-23
Figure 37: Total US retail sales and forecast of energy drinks, at inflation-adjusted prices, 2013-23
Figure 38: Total US retail sales and forecast of energy shots, at inflation-adjusted prices, 2013-23
Figure 39: Total US retail sales of energy drinks and shots, by channel, at current prices, 2013-18
APPENDIX – KEY PLAYERS 
Figure 40: Multi-outlet sales of energy drinks and shots, by leading companies, rolling 52 weeks 2018 and 2019