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The early stages of the millennium witnessed a plethora of energy and functional drinks hitting
the UK market, many of which have disappeared as the category has steadily matured. The market in
2005 shows consumers are now drinking for both health and functionality, whether it is to make
oneself feel more energetic, to stay awake while driving or to dance on into the small hours.
Sales in 2005 are likely to be worth in excess of 亽1 billion in which Red Bull remains the
dominant brand by value. Indeed, the category in the UK is highly concentrated among a few products
and suppliers, supported by a handful of minor players and supermarket own label. Having become well
established from the suppliers point of view, it necessitates continuous investment in educating
potential drinkers as to the benefits of the category while continuing to preach the existing
message to the converted.
Contents
Introduction and Abbreviations
Definition
Consumer research
ACORN
Abbreviations
Executive Summary
Energy drinks " a ｣1 billion market
Increasing choice for functionality
Energy drink duopoly firmly established
Consumers now media weary
24/7 availability the key to success
Happy to pay a premium
Market Drivers
Energy boost
Lifestyle changes
Establishing habits
- Figure 1: Trends and projections in UK population, by age group, 2000-09
Prosperity and affluence
- Figure 2: PDI and consumer expenditure, at constant 1999 prices, 1999-2009
Energy drinks as mixers
- Figure 3: Agreement with the statement "energy drinks are a good mixer with alcohol"
by age, April 2005
- Figure 4: Agreement with the statement "I drink vodka with a mixer" by age,
December 2004
Market Size and Trends
Taste drives the market
- Figure 5: UK retail sales of energy and stimulant drinks, by volume and value, 2000-05
Convenience and portability
Market Segmentation
- Figure 6: UK retail sales of energy and stimulant drinks, by type, 2001-05
Still/carbonated
Diet and sugar free
Organic
The Supply Structure
Brand shares
- Figure 7: Leading energy and stimulant drinks brands in the UK, by volume 2003 and 2005
- Figure 8: Leading energy and stimulant drinks brands in the UK, by value 2003 and 2005
Companies and brands
Atomic Energy UK
Boost Drinks
Brands Unlimited
Britvic Soft Drinks
Coca Cola Enterprises
Danone
Drinks Dispense Group
Extreme Group
Glaxo SmithKline
Global Brands Limited
Halewood International
Red Bull
Taisho Pharmaceuticals
Twinlab
Vitabiotics
Others
Own-label
New Product Development
- Figure 9: Number of new products launched in the energy and sports drinks category by flavour,
June 2004 to June 2005
New product briefs
June 2005
March 2005
November 2004
October 2004
September 2004
August 2004
Advertising and Promotion
Above-the-line promotional strategies
- Figure 10: Main monitored media advertising expenditure on energy and stimulant drinks,
1999-2004
- Figure 11: Main monitored media advertising expenditure on energy and stimulant drinks brands,
by leading energy drinks manufacturers, 2002 and 2004
Main campaigns
Atomic Energy UK
Britvic Soft Drinks
Coca Cola Enterprises
Danone
Drinks Dispense Group
Extreme Group
Glaxo SmithKline
Global Brands Limited
Halewood International
Red Bull
Taisho Pharmaceuticals
Below-the-line promotional mechanisms
- Figure 12: Share of promotions in the energy and sports drinks market, by type (multiple grocers
only) June 2004 to June 2005
Distribution
Off-trade
- Figure 13: UK distribution of energy and stimulant drinks brands, by trade sector, 2003 and 2005
On-trade
Packaging
- Figure 14: Number of new products launched in the energy and sports drinks category, by
packaging type, June 2004 to June 2005
The Internet
The Consumer
- Figure 15: Brands of sports and energy drinks consumed in the last 6 months, 2005
Age is a key factor
Regional variations
The Consumer " Detailed Demographics
- Figure 16: Energy and stimulant drinks consumed in the last 6 months, by gender, age and
socio-economic group, April 2005
- Figure 17: Energy and stimulant drinks consumed in the last 6 months, by lifestage, presence of
children and Mintels Special Groups, April 2005
- Figure 18: Energy and stimulant drinks consumed in the last 6 months, by marital status, working
status and household size, April 2005
- Figure 19: Energy and stimulant drinks consumed in the last 6 months, by region and ACORN
categories, April 2005
- Figure 20: Energy and stimulant drinks consumed in the last 6 months, by media usage, commercial
TV viewing and supermarket usage, April 2005
The Future
Moving towards maturity
You are what you eat (and drink)
The natural way
Reaching the masses
Moving beyond traditional distribution channels
Big boys drive growth
Forecast
Optimistic future growth
- Figure 34: Forecast of the energy and stimulant drinks market, by value, 2005-10
- Figure 35: Forecast of the energy and stimulant drinks market, by volume, 2005-10
No signs of market saturation
Consumer demands
Functionality: Friend or foe?
Factors incorporated in the forecast
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