2019 State of the Beverage Industry: Energy drinks maintain competitive edge
Flavor combinations, natural ingredients contribute to double-digit growth
Function, flavor and convenience remain key growth drivers in the energy drinks and shots category, but after many years of growth, the performance of the energy shots segment has flattened out, said Gary Hemphill, managing director of research at New York-based Beverage Marketing Corporation (BMC), in Beverage Industry's August 2018 issue.
With slightly more than $1 billion in sales, the energy shots category decelerated 1.4 percent in U.S. multi-outlets and convenience stores for the 52 weeks ending May 19, according to data from Chicago-based Information Resources Inc. (IRI). In contrast, the energy drinks market saw steady growth, notching sales of $11.6 billion, an 11.3 percent increase during the same timeframe.
VPX Bang, a brand of Weston, Fla.-based VPX Sports, experienced triple-digit growth of nearly 768 percent and slightly more than $615 million in sales, IRI data suggests. The portfolio features flavors like Black Cherry Vanilla, Cotton Candy, Peach Mango and Rainbow Unicorn.
Not only do consumer drink energy shots for a quick boost of energy in a portable form, but today’s energy drinks’ consumers are consuming beverages containing both function and flavor, noted IRI’s Vice President of Thought Leadership Susan Viamari in the August 2018 issue of Beverage Industry. “Today’s beverages are balancing these two qualities, making energy drinks much more enjoyable to consume,” she said. “As a result, the energy drinks category has become much more competitive.”
(Individual brands)
| DOLLAR SALES | % CHANGE VS. PRIOR YEAR | MARKET SHARE | % CHANGE VS. PRIOR YEAR | |
| Red Bull | $2,899,032,484 | 0.9 | 24.9 | -2.5 |
| Monster Energy | $1,762,748,352 | 7.1 | 15.1 | -0.6 |
| Red Bull Sugar Free | $782,584,189 | 6.8 | 6.7 | -0.3 |
| Monster Energy Zero | $689,572,127 | 0.1 | 5.9 | -0.1 |
| VPX Bang | $615,019,182 | 767.6 | 5.3 | 4.6 |
| Nos | $455,524,214 | 5.5 | 3.9 | -0.2 |
| Monster Energy Lo-Carb | $278,838,789 | -3.8 | 2.4 | -0.4 |
| Monster Mega Energy | $236,832,085 | -1.4 | 2.0 | -0.3 |
| Red Bull Blue Edition | $226,678,617 | 10.7 | 1.9 | 0.0 |
| Red Bull Yellow Edition | $209,801,405 | 16.0 | 1.8 | 0.1 |
| Category total* | $11,644,140,591 | 11.3 | 100.0 | — |
*Includes brands not listed.
Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, gas and convenience stores, mass merchandisers, military commissaries, and select club and dollar retail chains for the 52 weeks ending May 19.
High-end energy drinks, premiumization and extended release caffeine are cutting-edge trends in the overall energy drinks’ category, according to Rockville, Md.-based Packaged Facts June 2017 “Ready-to-Drink Beverages: Culinary Trend Tracking Series” report.
“Premiumization eventually happens in most beverage categories, so it’s probably not that unexpected to see the first example of it occurring in the energy drink category. But such is the case with a brand … Hackamore, [that] uses the tag line, ‘The Premium Energy Beverage,’” the report states.
Packaged in a 1-liter frosted glass bottle resembling a wine or spirit, Hackamore is positioning itself as an upscale energy mixer for cocktails, offering “a balanced composition of intensity and flavor,” its website states.
(Individual brands)
| DOLLAR SALES | % CHANGE VS. PRIOR YEAR | MARKET SHARE | % CHANGE VS. PRIOR YEAR | |
| 5 Hour Energy | $947,624,571 | -1.1 | 90.6 | 0.2 |
| Tweaker | $20,496,933 | 2.5 | 2.0 | 0.1 |
| Stacker 2 Extra | $15,743,237 | 2.2 | 1.5 | 0.1 |
| Private label | $12,840,967 | -19.3 | 1.2 | -0.3 |
| Stacker 2 | $9,871,990 | 9.8 | 0.9 | 0.1 |
| Rhino Rush | $8,110,927 | -4.8 | 0.8 | 0.0 |
| EE | $6,868,619 | 0.2 | 0.7 | 0.2 |
| Stacker 2 Extreme | $6,132,871 | -0.2 | 0.6 | 0.2 |
| Vital 4U Screamin | $2,685,693 | -0.2 | 0.3 | 0.0 |
| Rip It Energy Fuel | $2,436,829 | -11.5 | 0.2 | 0.0 |
| Category total* | $1,045,982,835 | 0.0 | 100.0 | — |
*Includes brands not listed.
Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, gas and convenience stores, mass merchandisers, military commissaries, and select club and dollar retail chains for the 52 weeks ending May 19.
Packaged Facts’ report notes that some brands such as zümXR are controlling the way that caffeine is delivered in an energy drink. It is based on patented time-release micro-beads, stabilized in a liquid form with pH levels typically present in a beverage, which can be formulated in beverages or powdered drinks to offer a more sustained caffeine lift.
Although energy drink mixes are a smaller sub-segment of the energy drinks and shots category, IRI’s Viamari pointed out that energy drink mixes are stealing share from the energy shots segment. Energy drink mixes consist of a liquid or powder concentrate that can be added to water, allowing consumers to customize their experience, she explained. The segment saw sales of nearly $110 million and double-digit growth of 14.2 percent in multi-outlets and convenience stores for the 52 weeks ending May 19, IRI data suggests.
Going forward BMC’s Hemphill projects the energy drink category to grow in the mid-single digits in the years ahead.
IRI’s Viamari agreed, noting that the category is well-positioned for growth due to consumer interest in its function and convenience factors. In the June 2018 Beverage Industry, she also suggested that natural ingredients and unique flavor combinations will bolster consumer interest.
“To tap into this opportunity, [consumer packaged goods] (CPGs) and retailers must stay in lock-step with key trends such as natural ingredients, exciting and unexpected flavors/flavor combinations and value,” she said. “CPGs must also look to adjacent categories for inspiration — consider carbonation, free-from, protein/vitamin/mineral enhanced, etc.” BI
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