Consumer Fatigue: Delivering Energy Boosts Through Food and Drink

Table of Contents

OVERVIEW

• Catalyst
• Summary

THE FUTURE DECODED

• INTRODUCTION: A growing desire to maintain and lift physical energy levels is being witnessed across a broad spectrum of consumers
• TREND: Life pressures are impacting consumers' physical energy levels
  • Consumers in some countries complain about not feeling as full of life as they want
  • Consumer tiredness issues are well reported and have consequences for health and consumption behaviors
  • Sleeping time is being sacrificed often with the intention of creating more leisure time
  • Consumers are attempting to improve their work-life balance
  • Key takeouts and implications: energy boosting products can help offset consumers' diminishing energy levels caused by hectic lifestyles
• TREND: Consumers are paying close attention to their energy needs
  • Both genders pay high levels of attention to their energy needs, yet females remain poorly targeted by energizing products
  • Young adults' hectic lifestyles fuel interest in their energy needs, although Seniors are the most desirous of more energy
  • Consumer energy levels are variable based on seasonality
  • Key takeouts and implications: consumer energy levels vary by season and demographic, providing useful guidelines for maximizing the impact of and audience for energy products
• TREND: Consumers are spending increasing amounts of money on energy beverages
  • Energy drinks exhibit stronger growth than sports drinks through their association with wider energy needs
  • Energy drinks sales have been restricted in some countries, where the category has been closely monitored
  • The energy drink category is becoming very competitive, fuelling the need for innovative marketing campaigns
  • Coffee is popularly drunk as an everyday energy booster
  • Consumers have embraced the combination of energy drinks and alcohol
  • Key takeouts and implications: energy drinks are the new coffee in peoples' energizing choices
• INSIGHT: Young adults are a core target for energy drinks, but older consumers are being drawn in with a variety of energizing products
  • Targeting young males with controversial branding has been criticized
  • Kids are a controversial but increasingly targeted consumer group
  • Older consumers are being lured to the sector with healthier and more natural energy drinks
  • Key takeouts and implications: energy drinks should target a greater demographic spread rather than just young males
• INSIGHT: Keep fit regimes continue to fuel the energy food and drinks market
  • Consumers perceive physical fitness to be important to their wellbeing
  • Exercise is said to boost energy levels and self esteem
  • The popularity of sports bars in the US shows consumers' appetite for quick fix energy boosts and recovery products
  • Key takeouts and implications: addressing the energy needs of exercisers has been a success, but a large proportion of consumers fail to act out well intentioned exercise plans
• INSIGHT: There is a distinct movement towards natural ingredients in energy products
  • There is a growing mistrust of energy drinks among consumers
  • There is a move towards slow releasing energy ingredients
  • Energy drinks are being launched that tout their natural ingredients
  • Adding natural ingredients could help attract more women to the energy drinks category
  • Key takeouts and implications: growing mistrust in the healthiness of traditional energy drinks provides an opportunity for natural based products that provide slow release energy
• INSIGHT: Energizing ingredients are migrating from drinks to food and personal care products
  • The new energy candy category aims to capitalize on the success of energy drinks
  • Energy boosting personal care products include lip balms and shower gels
  • Key takeouts and implications: energizing candies and personal care products are on the increase, each with a particular gender focus

ACTION POINTS

• ACTION: Attract a wider consumer base for energy boosting products through increased personalization and more positive branding strategies
  • Focus on creating a more positive image for energy drinks by using natural ingredients, non-conventional packaging and subtle branding
  • Move away from high caffeine products towards slow releasing energy enhancing ingredients
  • Older consumers and women have shown a desire for energizing products and should be targeted with appropriate products
  • Emphasizing moderation in energy drink consumption can help claim the moral and healthy high ground
• ACTION: Enhance the under exploited non-beverage sector with good tasting energy alternatives
  • Utilize sweet tasting ingredients to mask bitter tasting energy ingredient flavors, or focus on the energizing properties of the brand
  • Consider developing energizing savory snacks
• ACTION: Consider competitive pricing strategies to gain an advantage in the recessionary environment
  • Energy products could suffer in the downturn as people cut out non-essentials
  • Private label energy products have not performed well in the past but could gain a price advantage in the downturn

APPENDIX

• Definitions
• Methodology
• Further reading and references
• Ask the analyst
• Datamonitor consulting
• Disclaimer

TABLES

• Table: Consumer survey: how much consumers have felt full of life in the past month in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008
• Table: Consumer survey: propensity for acute tiredness in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008
• Table: Average per capita daily sleeping time (hours) in Europe, US and Asia Pacific, by country, 2002 - 2012
• Table: Consumer survey: how consumers have made attempts to improve their work-life balance over the past six months in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008
• Table: Consumer survey: the amount of attention consumers pay to their physical energy or stamina needs in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008
• Table: Consumer survey: how much consumers have felt full of energy in the past month in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008
• Table: Energy drinks market value (overall and per capita, US$ m), in 15 countries across Europe, Asia Pacific, South America and the US, 2003-2012
• Table: Sports drinks market value (overall and per capita, US$), in 15 countries across Europe, Asia Pacific, South America and the US, 2003-2012
• Table: Coffee market value (overall and per capita, US$), in 15 countries across Europe, Asia Pacific, South America and the US, 2003-2012
• Table: Consumer survey: how important consumers perceive exercising or physical fitness to the feeling of wellbeing in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008
• Table: Sports and energy bar market value (overall and per capita, US$), in 15 countries across Europe, Asia Pacific, South America and the US, 2003-2012
• Table: Consumer survey: the relative importance of different need states in influencing snack choices

FIGURES

• Figure: This reports deals with the "physical health" component of the functional food spectrum
• Figure: There are various drivers and inhibitors to the energy boost market
• Figure: Some countries reported to feeling more full of life than others
• Figure: Consumers have reported high levels of tiredness across all 15 countries
• Figure: Many consumers are attempting to improve their work-life balance
• Figure: Males and females are paying similar levels of attention to their physical energy needs
• Figure: The majority of both male and female consumers report feeling only full of energy sometimes
• Figure: Young Adults and Seniors are paying the most attention to their physical energy and stamina needs
• Figure: A high proportion of all age groups said they felt full of energy only sometimes
• Figure: Energy drink launches have increased dramatically in recent years
• Figure: Monster Energy is marketed on a Las Vegas monorail, creating a novel marketing initiative
• Figure: Daytime energy boost was the second most popular reason given for drinking instant coffee
• Figure: Roast and ground coffee consumption has less focus on energy boosting, being perceived more for a special occasion
• Figure: Men in the UK reported to drinking more coffee in a week on average than women
• Figure: Coffee beverages with functional benefits have been launched mainly in Japan
• Figure: Alcoholic energy drinks are a controversial sector of the market
• Figure: Teenage males are targeted by energy drinks manufacturers through the use of controversial branding, celerity endorsements and bright graphics
• Figure: Manufacturers have targeted children with kid-friendly energy brands
• Figure: Consumers consider exercising and physical fitness important in creating a feeling of wellbeing
• Figure: Clif Bar launches a high number of new products annually to help retain consumer demand
• Figure: The caffeine content of soft drinks varies considerably
• Figure: There have been increasing numbers of energy drink launches touting natural ingredients
• Figure: Manufacturers are attempting to appeal to women with natural ingredients, slim-aiding formulas and colorful packaging
• Figure: More female respondents had switched to organic and natural products in the past six months than males
• Figure: Energizing confectionery products have been released that exploit the popularity of energy drinks
• Figure: There are an increasing number of personal care products that claim to have energizing properties
• Figure: Slow-releasing energy product encompass a variety of categories
• Figure: Create brands which have less controversial brand names to gain a wider consumer focus
• Figure: Energized savory snacks include sunflower seeds and potato chips
• Figure: Various stores have launched own-brand energy drinks, including Carrefour, Asda, M&S and 7-Eleven