The Growing Popularity of Energy Drinks
Would it surprise you to learn that in America alone, energy drink consumption has gone up by 5,000% since the beginning of the millennium? Well that’s exactly what has happened in a global market that’s continuing to grow at a hastened pace.
The current energy drink market sits at approximately $12.6 billion, with Canada and the U.S. combining to hold the largest market share at 35%. The market is expected to grow by another 10% by 2016, a faster pace than the 14% increase since 2008.
Why People Are Turning to Energy Drinks
Several factors can be identified as the reason energy drinks have become so popular. One reason can possibly be simple semantics. Many people interchange sports drinks with energy drinks, but they are markedly different, with the former being formulated specifically for enhanced performance during activity and the latter being designed to inject a burst of energy into the consumer.
But semantics alone can’t explain why energy drinks are on pace to outsell coffee in the next decade. The fact that it has the “cool” appeal is much more of a factor. While coffee still has the label of being for older individuals needing a morning boost to start their day, energy drinks have been able to tap into the Millennial market, creating buzz around college campuses and aligning themselves with a lifestyle that reflects the mobile and almost chaotic movements of this generation.
The appeal to Gen Y is no accident, as close to half of all energy drink advertisements over an 11-month period between 2012 and 2013 appeared on content geared towards teens. According to a study by Dartmouth College, MTV2 led the way in advertising energy drinks, showing 2,959 minutes of commercials pertaining to the industry.
Organic Energy Drinks the New Craze
The surge in energy drink sales comes despite criticism of the beverages, namely the argument that they contain too much caffeine and sugar. However, recent innovations now see brands incorporating organic options into their product lines, a move that could possibly shift energy drinks into the health sections.
The term “organic” on energy drink labels refers to the use of real coffee beans to infuse caffeine content rather than caffeine that’s been manufactured in a lab. Clean energy, along with diet and natural energy drink options, are other innovations that are meant to accommodate the growing cultural health awareness movement, wherein individuals are taking more control of their personal health.
The added focus towards appealing to the healthy consumer has opened up the market for energy drinks. This new dimension can potentially encourage the use of energy drinks by health-conscious consumers above just giving them a boost of energy. And with companies like Rockstar, Inc. boasting their USDA approval directly on the label, the next few years promise to be an interesting time for all energy drink providers.
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Sherer, J., “Organic Is the Final, Frizzy Frontier for Energy Drinks,” TakePart web site, March 23, 2015; http://www.takepart.com/article/2015/03/23/rockstar-organic-energy-drink.
Hill, A., “Energy drinks go natural as market buzzes along,” USA Today web site, July 6, 2013; http://www.usatoday.com/story/money/business/2013/07/06/energy-drinks-go-natural/2479993/.
Pederson, T., “Nearly Half of Energy Drink Ads Air on Teen-Themed TV,” PsychCentral web site, March 7, 2015; http://psychcentral.com/news/2015/03/07/nearly-half-of-energy-drink-ads-air-on-teen-themed-tv/82032.html.
Martin, J., “Energy drinks market outlook to 2018 explored in new market research report,” WhaTech web site, March 18, 2015; http://www.whatech.com/market-research-reports/press-release/consumer/47868-energy-drinks-market-outlook-to-2018-explored-in-new-market-research-report.