Energy Drinks - US - March 2007

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Market at a glance
• Packaging size--a value proposition and growth driver
• Red Bull continues to be the top manufacturer but loses market share
• Convenience stores account for over 80% of the total retail sales
• Energy drinks consumers
• Adult consumer
• Teen consumer
• Future sales may not exhibit the current sales momentum built during 2001-06
• Market Drivers
• A growing need for energy boost
  • Figure 1: Purpose of drinking energy drinks, February 2007
  • Figure 2: Energy drinks penetration, 2002-06
• Demographic influences
• Young adults drive the market
  • Figure 3: Energy drinks consumption, by age, January-October 2006
• Edgy marketing targeted to young lifestyles
• My drink and my caffeine--not my Mom and Dad' s
  • Figure 4: Consumption of coffee, by age, August 2006
  • Figure 5: U.S. population of young adults aged 18-34, by age, 2000-11
• Teens positively impact energy drinks market
  • Figure 6: Consumption of energy drinks, January-October 2006
  • Figure 7: U.S. population of teens aged 12-17, 2001-11
• Growth through energy drinks targeting women
• Blacks and Hispanics--key racial/ethnic demographics in the market
  • Figure 8: Energy drinks consumption, by race/ethnicity, January-October 2006
  • Figure 9: Population, by race and Hispanic origin, 2001-11
  • Figure 10: Hispanic and black purchasing power, 1990-2011
• Innovation through line extensions
• Packaging
• Juice hybrids
• Energy drinks as a mixer
  • Figure 11: Usage of beer and spirits in the past 12 months among all adults and energy drink users, 2004 and 2006
• Market Size and Trends
• Market size
  • Figure 12: Total U.S. retail sales of energy drinks, at current and constant prices, 2001-06
  • Figure 13: Average price per fluid ounce of various RTD non-alcoholic beverages at FDM, 2006
• Wal-Mart estimate
  • Figure 14: Number of regular stores and supercenters opened by Wal-Mart, FY 2001-05
• Market trends
• Product proliferation--taboo names attract target consumers
  • Figure 15: New energy drink product releases, 2001-07*
  • Figure 16: New energy drink product claims, 2001-07
  • Figure 17: New energy drink product flavors, 2001-07
• Market Segmentation
• Introduction
  • Figure 18: Energy drinks sales through FDM*, segmented by type, 2004 and 2006
• Non-aseptic energy drinks
  • Figure 19: FDM* sales of non-aseptic energy drinks, at current and constant prices, 2001-06
  • Figure 20: Price comparison of single-serve and multipacks for Red Bull, 2007
• Aseptic energy drinks
  • Figure 21: FDM* sales of aseptic energy drinks, at current and constant prices, 2001-06
• Mixes
  • Figure 22: FDM* sales of non-aseptic energy drinks, at current and constant prices, 2001-06
• Supply Structure
• Consolidation in the beverage industry
• Merger and acquisition activity
• Expansion in distribution for small players
• Companies and brands
  • Figure 23: FDM* sales of major manufacturers in the energy drinks market in the U.S., 2004 and 2006
• Brand sales of energy drinks
  • Figure 24: Selected brand sales and market share of major energy drinks at FDM* in the U.S., 2004 and 2006
  • Figure 25: Selected brand sales and market share of high-growth energy drinks at FDM* in the U.S., 2004 and 2006
• Manufacturers' profiles
• Red Bull
• Hansen Natural Corporation
• Distribution strategy and customers
  • Figure 26: Hansen Natural Corporation sales, by channel, 2005
• Sales
• Rockstar International
• PepsiCo, Inc.
• The Coca-Cola Company
• Advertising and Promotion
• Introduction
• Coca-Cola
• Hansen Natural Corporation
• PepsiCo
  • Figure 27: Amp Energy--TV ad, 2006
• Red Bull
• Retail Distribution
• Introduction
  • Figure 28: U.S.* retail sales of energy drinks, by channel, 2004 and 2006
• Convenience stores
  • Figure 29: U.S. convenience store sales of energy drinks, at current and constant prices, 2001-06
• Supermarkets
  • Figure 30: U.S. supermarket sales of energy drinks, at current and constant prices, 2001-06
• Drug stores
  • Figure 31: U.S. drug store sales of energy drinks, at current and constant prices, 2001-06
• The Consumer: Usage, Frequency of Use, Brand Use
• Summary
• The adult consumer
• Teen consumer
• Adults and energy drinks
• Overview
  • Figure 32: Incidence of energy drinks consumption, 2002-06
  • Figure 33: Incidence of energy drinks consumption, by gender, January-October 2006
  • Figure 34: Incidence of energy drinks consumption among males, 2002-06
  • Figure 35: Incidence of energy drinks consumption among females, 2002-06
  • Figure 36: Incidence of energy drinks consumption, by age, January-October 2006
  • Figure 37: Incidence of energy drinks consumption among adults aged 18-24 and 25-34, 2002-06
  • Figure 38: Incidence of energy drinks consumption, by race/ethnicity, January-October 2006
  • Figure 39: Incidence of energy drinks consumption among blacks and Hispanics, 2002-06
  • Figure 40: Incidence of energy drinks consumption, by marital status, January-October 2006
  • Figure 41: Incidence of energy drinks consumption, by presence of children in the household, January-October 2006
  • Figure 42: Incidence of energy drinks consumption, by region, January-October 2006
• Consumption by brand
  • Figure 43: Consumption of energy drinks, by brands, by gender, January-October 2006
• Frequency of consumption
  • Figure 44: Frequency of consumption of energy drinks, 2004 and 2006
  • Figure 45: Frequency of consumption of energy drinks, by gender, January-October 2006
  • Figure 46: Frequency of consumption of energy drinks, by age, January-October 2006
  • Figure 47: Frequency of consumption of energy drinks, by race/ethnicity, January-October 2006
• Teens and energy drinks
• Overview
  • Figure 48: Energy drink penetration among teens, January-October 2006
  • Figure 49: Energy drinks penetration among teens, 2002-06
  • Figure 50: Energy drinks penetration among teens, by gender/age, January-October 2006
  • Figure 51: Energy drinks penetration among teens, by race/ethnicity, January-October 2006
• Consumption by brand
  • Figure 52: Consumption of energy drinks, by brands, by gender, January-October 2006
• Frequency of consumption among teens
• Figure 53: Frequency of consumption of energy drinks among teens, January-October 2006
• The Consumer: Where, When, Why and How Energy Drinks Are Used
• Summary
• Energy drink retail channel preferences
• Brand loyalty
• Occasions to drink energy drinks
• Places to drink energy drinks
• Purpose of drinking energy drinks
• Ingredients valued
• Attitudes toward attractiveness, exercise, and risk taking: 18-24 year olds
• Energy drinks and food and other beverages
• Where consumers buy energy drinks and what they buy
• Energy drink retail channel preferences
  • Figure 54: Choice of retail channels to purchase energy drinks, by age, February 2007
• Energy drink brand loyalty
  • Figure 55: Energy drink brand loyalty, by race/ethnicity, February 2007
• When and where consumers drink energy drinks
• Occasions to drink energy drinks
  • Figure 56: Occasions to drink energy drinks, by age, February 2007
• Places to drink energy drinks
  • Figure 57: Places to drink energy drinks, by age, February 2007
• Why consumers drink energy drinks
• Purpose of drinking energy drinks
  • Figure 58: Purpose of drinking energy drinks, by age, February 2007
• Energy drink ingredients consumers value
  • Figure 59: Preference for energy drink ingredients, by age, February 2007
• Attitudes toward attractiveness, exercise, and risk taking: 18-24 year olds
  • Figure 60: Attitudes toward attractiveness, exercise, and risk taking, by energy drink preferennce, males aged 18-24, January-October 2006
  • Figure 61: Attitudes toward attractiveness, exercise, and risk taking, by energy drink preferennce, females aged 18-24, January-October 2006
• How consumers drink energy drinks
• Energy drinks and food
  • Figure 62: Energy drinks usage with food, by age, February 2007
  • Figure 63: Energy drinks usage with food, by race/ethnicity, February 2007
• Energy drinks usage with other beverages
  • Figure 64: Energy drinks usage with other beverages, by age, February 2007
  • Figure 65: Energy drinks usage with other beverages, by race/ethnicity, February 2007
• The Consumer: Hybrid Preferences and Who Does Not Use Energy Drinks
• Summary
• Energy drink hybrid preferences
• Reasons for not drinking energy drinks
• Energy drink preferences among non-users
• Preference for selected energy drink hybrids
  • Figure 66: Preference for selected energy drinks options, by age, November 2006
  • Figure 67: Preference for selected low-calorie/sugar-free energy drinks, by gender, November 2006
• Understanding the consumer who does not drink energy drinks
• Why consumers do not drink energy drinks
  • Figure 68: Reasons for not drinking energy drinks, by age, February 2007
• Energy drink preferences of non-drinkers
  • Figure 69: Energy drink interests of non-drinkers, by age, February 2007
• Future and Forecast
• Future trends
• Increased attention from researchers and health authorities on negative influence of energy drinks on health
  • Figure 70: Caffeine content of selected beverages, 2006
• Proliferation of products may lead to price war in the industry
• Demographic influences
• Young adults and teens
  • Figure 71: U.S. population of teens and young adults aged 12-34, by age, 2000-11
• Hispanics and blacks--promise for continued growth
  • Figure 72: Population, by race and Hispanic origin, 2001-11
• Increasing influence of hybrids
• Competition from hybrid soda
• Trend towards pre-mixed alcoholic energy drinks
• Increased innovation in natural energy-boosting foods and beverages
• Continued consolidation in the industry
• Market forecast
• Energy drinks
  • Figure 73: Forecast of total U.S. sales of energy drinks, at current and constant prices, 2006-11
• FDM Energy drinks
  • Figure 74: Forecast of U.S. FDM sales of energy drinks, at current and constant prices, 2006-11
• Forecast factors
• Appendix: Trade Associations