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Do energy shots stand a chance?
In this challenging economic climate, consumers are tightening their belts and cutting down on nonessential spending. Jenny Foulds, editor of Zenith International’s functionaldrinks newsletter, wonders whether premium priced energy shots – one of the energy drink category’s fastest growing trends alongside ‘healthy energy’ – stand a chance.
The answer is a resounding yes, according to Zenith’s 2009 Energy Shot Drinks report. Originating from the thriving US energy drinks market, which has overtaken the vast, category-creating Asian market in recent years and become an unstoppable force, the future of energy shots will no doubt be affected by challenges such as the economic environment, route to market, cannibalisation of existing energy drinks, consumer scepticism or scrutiny over claims, but the view is that the pros far outweigh the cons.
Carbonated or still, berry-, juice– or even dairy-based energy shots packaged predominantly in 2oz shrinkwrapped plastic bottles represent an exciting opportunity for energy drinks, and indeed the wider soft drinks industry, with their product placement potential (sports, energy, wellness) equally as wide-ranging as their base applications. As well as expanding the reach of traditional energy drinks into new channels, additional opportunities involve:
- shots’ low-calorie angle increasing the appeal to new audiences
- a wider use of the latest super fruits
- potential co-packing/outsourcing deals
- an increasing number of consumers with specific health and nutrition needs due, in part, to an ageing population.
US-based Living Essentials arguably pioneered the segment with the unveiling of its 5-Hour Energy in 2005. Leading energy drink brands such as Monster, Full Throttle, NOS, Rockstar and now Red Bull are also competing on this new playing field.
Following a flurry of new product development in 2008, the combined markets of North America and Europe generated value sales of almost $750m by the end of the year and are predicted to surpass the $1bn mark by 2010, according to Zenith’s latest topical report – a significant figure for such a nascent segment.
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Beverage Innovation is a monthly periodical examining the new product launches, ingredients, manufacturing and consumption trends in every sector of the non-alcoholic drinks industry.
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