Energy Supplements - US - September 2005

Contents

Introduction and Abbreviations

Introduction

Other relevant reports

Definition

Abbreviations & terms

Abbreviations

Terms

Executive Summary

A fast-growing market starting to mature

Age, health awareness, and untapped consumers helping energy supplements into the mainstream

Brands—market leaders emerging, but competition is increasing at the top

Marketing strategies starting to mainstream

Distribution widens

The Consumer—eager for energy

Energy supplements—transitioning from youth to mainstream

Purchases made based on promise to deliver energy

Acceptance of food and beverages as way to take vitamins and minerals

Food and beverages preferred when looking for an energy boost

Future

Market Drivers

Age trends

Figure 1: U.S. population projections, by age group, 1998-2008

Health issues increasingly on cultural radar

More Americans exercising; health awareness increasing

Figure 2: Percentage of adults exercising to lose or maintain weight, 1996, 1998 and 2000

Figure 3: Incidence of U.S. adults trying to lose weight, maintain weight or eat fewer calories, 1996, 1998 and 2000

Low carb diets surge in popularity

Figure 4: Incidence of low carb dieting, February 2004

Untapped consumer base influencing product development

Energy supplements seen as affordable lifestyle choice

Figure 5: Per capita DPI, in current dollars, 1998-2003

Products maintain high price points despite increasingly crowded market

Modern lifestyles encourage consumption

Multi-tasking customers value convenience

Americans are under-slept

Americans are overworked

Age trends update

Updated DPI

Update Figure 1: Per capita DPI, in current 2000 dollars, 1999-2004

Market Size & Trends

Figure 6: Total U.S. retail sales of energy supplements, at current and constant prices, 1998-2003

Figure 7: Graph: Total U.S. retail sales of energy supplements, at current and constant prices*, 1998-2003

Update market size and trends

Update Figure 2: Total U.S. retail sales of energy supplements, at current and constant prices, 1999-2004

Update Figure 3: Graph: Total U.S. retail sales of energy supplements, at current and constant prices, 1999-2004

Market Segmentation

Overview

Figure 8: Sales of energy supplements, segmented by product, 2001 and 2003

Figure 9: Graph: Sales of energy supplements, segmented by product, 1998-2003

Energy bars

Figure 10: Sales of energy bars, at current and constant prices, 1998-2003 (fixed 8.25)

Protein liquid/powder drinks

Figure 11: Sales of protein liquid/powder drinks, at current and constant prices, 1998-2003

Energy/stimulant drinks

Figure 12: Sales of energy/stimulant drinks, at current and constant prices, 1998-2003

Update overview

Update Figure 4: Sales of energy supplements, segmented by product, 2003 and 2004

Update Figure 5: Graph: Sales of energy supplements, segmented by product, 1999-2004

Update Figure 5: Graph: Sales of energy supplements, segmented by product, 1999-2004

Update energy bars

Update Figure 6: Sales of energy bars, at current and constant prices, 1999-2004

Update liquid powder/protein drinks

Update Figure 7: Sales of protein liquid/powder drinks, at current and constant prices, 1999-2004

Update energy/stimulant drinks

Update Figure 8: Sales of energy/stimulant drinks, at current and constant prices, 1999-2004

Supply Structure

American vs. International production

Companies and brands

Figure 13: Manufacturer retail sales of energy supplements in the U.S., 2001 and 2003

Energy supplements earn high price points, as in 2002, but price competition is increasing

Company profiles

Energy drinks

Red Bull GmbH

PepsiCo/South Beach Beverage Company (SoBe)

Hansen s Natural Corporation

Coca-Cola/KMX

Rockstar

Energy Bars

Nestlé/PowerBar

GNC (General Nutrition Companies)

Kraft/BALANCE Bar

Clif Bar

Experimental Applied Science (EAS)

Atkins Nutritionals

MET-Rx Nutrition

Update companies and brands

Update Figure 9: Manufacturer retail sales of energy supplements in the U.S., 2003 and 2004

Advertising & Promotion

Introduction

Energy drinks

Red Bull GmbH

PepsiCo/SoBe

Hansen s

Coca-Cola/KMX

Rockstar

Energy Bars

Nestlé/PowerBar

Clif Bar

BALANCE Bar

MET-Rx

Experimental Applied Science (EAS)

Atkins Nutritionals

GNC (General Nutrition Companies)

Retail Distribution

Introduction

Figure 14: U.S. retail sales of energy supplements, by channel, 2001 and 2003

Figure 15: Graph: U.S. retail sales of energy supplements, by channel, 2003

Figure 16: U.S. specialty store sales of energy supplements, at current and constant prices, 1998-2003

Convenience stores

Figure 17: U.S. convenience store sales of energy supplements, at current and constant prices, 1998-2003

FDM stores

Supermarkets

Figure 18: U.S. supermarket sales of energy supplements, at current and constant prices, 1998-2003

Drug Stores

Figure 19: U.S. drug store sales of energy supplements, at current and constant prices, 1998-2003

Mass Merchandisers

Figure 20: U.S. mass merchandiser sales of energy supplements, at current and constant prices, 1998-2003

Direct and other channels

Figure 21: U.S. direct/other sales of energy supplements, at current and constant prices, 1998-2003

Update retail distribution

Update Figure 10: U.S. retail sales of energy supplements, by channel, 2003 and 2004

Update specialty stores

Update Figure 11: U.S. specialty store sales of energy supplements, at current and constant prices, 1999-2004

Update convenience stores

Update Figure 12: U.S. convenience store sales of energy supplements, at current and constant prices, 1999-2004

Update FDM stores

Supermarkets

Update Figure 13: U.S. supermarket sales of energy supplements, at current and constant prices, 1999-2004

Drug stores

Update Figure 14: U.S. drug store sales of energy supplements, at current and constant prices, 1999-2004

Mass merchandisers

Update Figure 15: U.S. mass merchandiser sales of energy supplements, at current and constant prices, 1999-2004

Other/direct update

Update Figure 16: U.S. direct/other sales of energy supplements, at current and constant prices, 1999-2004

The Consumer

Introduction

Energy supplements—transitioning from youth to mainstream

Figure 22: Consumption of energy supplements, December 2001 and January 2004

Figure 23: Consumption of energy supplements, by gender, January 2004

Figure 24: Consumption of energy supplements, by age, January 2004

Figure 25: Consumption of energy supplements, by income, January 2004

Figure 26: Consumption of energy supplements, by race/ethnicity, January 2004

Figure 27: Consumption of energy supplements, by region, January 2004

Purchases made based on promise to deliver energy

Figure 28: Incidence of purchase based on promise to deliver energy, January 2004

Figure 29: Incidence of purchase based on promise to deliver energy, by gender, January 2004

Figure 30: Incidence of purchase based on promise to deliver energy, by age, January 2004

Figure 31: Incidence of purchase based on promise to deliver energy, by race/ethnicity, January 2004

Acceptance of energy bars, protein drinks or energy drinks as a way to take vitamins and minerals

Figure 32: Acceptance of energy bars, protein drinks or energy drinks as a way to take vitamins and minerals, January 2004

Figure 33: Acceptance of energy bars, protein drinks or energy drinks as a way to take vitamins and minerals, by gender, January 2004

Figure 34: Acceptance of energy bars, protein drinks or energy drinks as a way to take vitamins and minerals, by age, January 2004

Figure 35: Acceptance of energy bars, protein drinks or energy drinks as a way to take vitamins and minerals, by race/ethnicity, January 2004

Food and beverages preferred when looking for an energy boost

Figure 36: Food and beverages preferred when looking for an energy boost, January 2004

Figure 37: Food and beverages preferred when looking for an energy boost, by gender, January 2004

Figure 38: Food and beverages preferred when looking for an energy boost, by age, January 2004

Figure 39: Food and beverages preferred when looking for an energy boost, by race/ethnicity, January 2004

Summary

Future & Forecast

Future trends

Aggressive new product development will continue

Energy-based and vitamin/mineral-based marketing will grow for these products

Rapid segmentation in energy bars may lead to consolidation

Rapid growth may taper but will remain strong

Figure 40: U.S. population projections, by age group, 2005 and 2010

Market forecast

Energy supplements

Figure 41: Forecast of U.S. retail sales of energy supplements, at current and constant prices, 2003-08

Graph 4: U.S. retail sales of energy supplements, 1998-2003, and forecast for 2004-08

Graph 4: U.S. retail sales of energy supplements, 1998-2003, and forecast for 2004-08

Energy bars

Figure 42: Forecast of U.S. retail sales of energy bars, at current and constant prices, 2003-2008

Protein liquid/powder drinks

Figure 43: Forecast of U.S. retail sales of protein liquid/powder drinks, at current and constant prices, 2003-08

Energy stimulant drinks

Figure 44: Forecast of U.S. retail sales of energy/stimulant drinks, at current and constant prices, 2003-2008

Forecast Factors

Market forecast-Update

Energy supplements

Update Figure 17: Forecast of U.S. sales of energy supplements, at current and constant prices, 2004-2009

Energy bars

Update Figure 18: Forecast of U.S. sales of energy bars, at current and constant prices, 2004-2009

Protein liquid/powder drinks

Update Figure 19: Forecast of U.S. sales of protein liquid/powder drinks, at current and constant prices, 2004-2009

Energy/stimulant drinks

Update Figure 20: Forecast of U.S. sales of energy/stimulant drinks, at current and constant prices, 2004-2009

Forecast factors

Appendix: Trade Associations

Appendix: New Product Developments

Natures Path Optimum Energy Bar Extensions

Pay Day High Protein Energy Bar

FUZE Energy Enhancing Drink

Diet Fizz Sugar Free Drink Mix

Boo Koo Wild Energy Supplement

Imu-lift Effervescent Energy Dietary Supplement

Category review

Figure 45: New product introductions of energy supplements, 1998-2004

Appendix: Nutrition Business Journal Source Data

Figure 46: Total U.S. wholesale and retail sales of nutrition bars, 5 leading brands, 1999-2002, and 2002 retail channel sales Figure 47: Total U.S. wholesale sales of nutrition bars, 5 leading brands by food category, 2002

Figure 48: Total U.S. company wholesale sales for top 5 nutrition bar companies, 1999-2002

Figure 49: Total U.S. wholesale and retail sales of sports powders/pills, 2001-02, and 2002 channel sales

Figure 50: Total U.S. wholesale and retail sales of energy drinks 1999-2002, and 2002 channel sales

Appendix: Research Methodology

Consumer Research

Sampling & Weighting

Presentation & Definition

Further Analysis

Trade Research

Informal trade research

Formal trade research

Desk & Internet Research

Sources

Definitions

Forecasts

Appendix: What is Mintel?

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