Energy drink launches grew 29% in the five years between 2010 and 2015, as the category enjoyed “a new lease of life”, according to market insights provider Mintel.
More energy drinks were launched worldwide in 2015 than in any year since 2008, Mintel said, with global sales volumes reaching 8.8 billion litres. Sales of energy drinks across key global markets enjoyed the strongest annual rise last year since 2012, with product launches involving an organic claim also reaching a new high.
Mintel research revealed that Germany recorded the highest share of new energy drink launches in 2015, overtaking the US for the first time. Some 9% of global energy drink launches occurred in Germany in 2015, as opposed to 8% in the US. This is changed from the year before, when Germany experienced just 6% of global energy drink launches and the US played host to 10%.
Volume sales are also on a high, rising by an “energetic” 10% worldwide. The top five energy drinks markets in terms of volume sales were the US (3.3 billion litres), China (1.4 billion litres), the UK (561 million litres), Thailand (465 million litres) and Vietnam (351 million litres). Additionally, volume sales in Germany reached 328 million litres, with Austria (79 million litres) and Switzerland (58 million litres) following much further behind.
In terms of volume growth, China experienced the greatest increase between 2014 and 2015 – up 25% – followed by Thailand, which experienced a rise of 19%.
Alex Beckett, global food and drink analyst for Mintel, said: “Energy drinks remain the controversial, yet undeniably successful, wild child of the soft drinks family. The primary driver of global growth remains the drinks’ capacity to provide consumers with a quick and effective energy boost – something which resonates with consumers the world over. Energy drinks are benefitting from being championed by giant brands, which devote huge investment to advertising and high-profile marketing initiatives to project an exciting and edgy image. However, in less developed regions, local energy drink brands are emerging and gaining distribution as a more affordable alternative to multinationals, adding pressure for major players to project a brand identity that consumers from New York to Beijing want to be associated with, and pay more for.”
Around 7% of energy drinks launched globally in 2015 carried an organic claim – up from 4% in 2011 – with Europe leading the way as the hotbed for organic innovation, with almost three in five organic energy drinks being launched in Europe.
The rise in organic launches comes as consumers show strong interest in more natural energy drinks. One in four US consumers said that they would be more comfortable drinking energy drinks or shots made with all-natural ingredients, while a comfortable majority of consumers in Poland, Spain, Italy and Germany said that they would like to see a wider variety of sports and energy drinks being made with natural colourings and flavours.
40% of consumers in China said that they would be encouraged to buy a sports or energy drinks product made from natural ingredients.
The research demonstrates the universal interest in organic and natural energy drink offerings, with potential growth opportunities – and consumer pressures – for brands offering such claims.
“The rise in global organic energy drink offerings illustrates how the sector is attempting to appeal to a broader audience by conveying a more natural image. For the foreseeable future, brands will remain under pressure to reformulate with better-for-you ingredients,” Beckett continued.
“Often exhausted and needing to be on the go pretty much constantly, young parents are emerging as a valuable user group for energy drink brands around the world. Although they are not the traditional target audience of 18-24s which typically feature in marketing campaigns, young parents and older millennials in general are the primary energy drink consumers.”
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