More than half of consumers are paying more attention to having enough physical energy and mental alertness, according to research from market research firm Datamonitor. And that desire is paying off at retail, as the U.S. energy drink market is now a $4.8 billion industry, according to Mintel, with consumption on the rise across demographic categories. And that’s before diving into the explosive growth seen in the energy shot category, where sales were estimated by Convenience Store News to reach $700 million in 2009, more than double from the year previous.
“Even though the economy has been difficult, energy drink sales have remained strong and energy shots are expected to almost double in 2009,” said Raj Khankari, Ph.D., CEO, Bioenergy. The reason is simple, he said. “One of the most common complaints we hear [from consumers] is, ‘I’m tired,’ so it’s no surprise the market is buying energy-enhancing products for alleviating fatigue and feeling better.”
The market is responding with more options to deliver that energy. “Beverages seem to be the most popular form currently because they pack a lot of punch into an easily carried and consumed product,” said David Pfefer, manager of fortification, Caravan Ingredients. “The more concentrated shots are easier to carry in backpacks and purses, but rely more on their vitamins, minerals, enzymes and botanical components than they do on nutritive sweeteners.”
Khankari has also seen a shift in the energy market. “Beverages have been the product form of choice in large part because that is what has been offered to consumers,” he said. “However, consumers typically purchase what is most convenient for them, depending on their age and the activity for which it is being used. The transition from energy drinks to energy shots is one of convenience—it’s less to drink, but yet still provides satisfaction and increased energy. A significant number of the new products introduced have been in the convenient energy-shot form. Gels, chews and sachets are all new forms for on-the-go consumption.”
Pat Schneider, chief business officer, Unigen Nutraceuticals, agreed convenience was a driving force in the market. “Shots will continue to remain strong in the male demographic of 18 to 35 years olds due to convenience and rapid onset of action without having to consume massive amounts of liquids,” she said. However, she cited newer formulations such as stick packs of powder that are even easier to transport and can deliver the kick without the liquid and calories.