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Sports and Energy Drinks Market - Global Annual Review - 2016

Energy drinks continued to defy condemnation from health lobbyists in 2015 by remaining one of the most consistently strong-performing soft drinks categories. The growth rate in global energy drinks accelerated in 2015. This represents the strongest annual rise since 2012. The primary driver of this 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 also benefit from being championed by giant brands like Red Bull, which devote huge investment to advertising and high profile marketing initiatives to project an exciting and edgy image. In less developed regions, local energy brands are emerging and gaining distribution as a more affordable alternative to multinationals, heaping pressure on the likes of Red Bull to project a brand identity that consumers from New York to Nigeria want to be associated with, and pay more for. One brand that is set to see its geographic reach explode is Monster Energy. It has been busy switching from third party bottlers to the global distribution network of its new partner, Coca-Cola, and will be established in various far-flung markets by the end of 2016.

Rising usage in emerging markets is set to support growth in energy drinks, as is the category’s lively approach to innovation. Although launch activity in the US tumbled in 2015, more energy drinks were launched globally that year than at any time before, with introductions bearing an organic claim reaching a record high. This 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. Although recently the war on sugar has – to some extent – diverted criticism from high caffeine drinks, the industry remains subject to calls for stricter regulation.

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Sports and Energy Drinks Market - Global Annual Review - 2016

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