Energy drinks are becoming a hot commodity in the general marketplace and their consumption is taking up a growing portion of the soft drinks market. Filled with high levels of B vitamins and different caffeine containing products, they are becoming the go-to alternative over even coffee to get past that afternoon wall or to get moving in the morning.
Energy drink sales are expected to reach $21 billion by 2017.
Because of the massive profit margins in this industry, there are a number of companies that are entering this market to compete with established names like Red Bull. This creates a lot of competition in the market for unique flavors and styles, but it has also established a trend for having higher levels of caffeine in the final product.
Three Fast Facts About Energy Drink Consumption
1. The average 5 Hour Energy drink contains 100mg of caffeine per fluid ounce.
2. Convenience stores make up 59% of the energy drink sales.
3. In 2013, the leading energy drink brand sold in the United States was 5 Hour Energy, making over $1 billion in total revenues.
Takeaway: The energy drink market is surging because productivity levels are demanded to be higher of workers around the world. Because people are so connected to work through technology, they are sleeping less, working more, and this requires an energy substitute. Unless this trend of all work and no play continues at such a high level, the upward trend of energy drink consumption will continue and that will be reflected in the billions in profits that can be realized.
Here is What You Need to Know Right Now
1. From 2007 to 2011, the amount of people seeking emergency treatment at a hospital because of the excessive consumption of energy drinks has doubled, from 10,068 to 20,783 people.
2. Too much caffeine can cause a wide range of heart related issues and can even be the start of a heart attack.
3. Out of all the emergency room visits that occurred in 2007-2011, 58% of people who visited the doctor did so just after consuming an energy drink.
4. 27% of people who drink energy drinks also combine them with other stimulant products, such as Ritalin or Adderall.
5. In 2004, France banned the sale of Red Bull because of the amount of stimulants that it contains, yet it is also contains one of the lowest amounts of caffeine per fluid ounce of all products that are on the market today.
6. Men account for 67% of all doctor visits that are associated with the consumption of energy drinks.
7. The age demographic that is most associated with a visit to the emergency room because of drinking energy drinks are men aged 18-25.
Takeaway: Although sometimes seen as something that’s really cool to do to get a buzz, most men are taking stimulants in order to be productive. It’s something that is being seen at an earlier age because more pressure is being placed on young people to succeed. With universities demanding extensive extra-curricular activities and high grades in order to accept an applicant, students are feeling the pressure to succeed earlier and earlier. Although this may lead to short-term gains, the long-term risks of energy drink consumption includes mood disorders, behavioral changes, seizures, and even the development of diabetes.
1. Consumers are becoming more health conscious, which means energy drinks will start developing specific labels to spur more sales, such as “gluten-free” or “no sugar” or “low calorie.”
2. 45% of people recently surveyed indicated that they purchased food and drink products because they were sustainable in nature.
3. There has historically been little or no innovation by energy drink manufacturers. Monster has more than 30 flavors of energy drinks, but there is no marketing differentiation. Red Bull historically has had two flavors on the market at all.
4. 74% of people still say that they do not regularly consume energy drinks.
5. 69% of people in a recent survey said that they have no interest in ever purchasing an energy drink at any time.
6. Sugar consumption while drinking an energy drink is a higher concern to most people, above and beyond the amount of caffeine that is actually in a product.
Takeaway: Many energy drinks are 16 ounces in size, or about 4 ounces more than the average soft drink. They contain a similar amount of sugar per serving, but a serving size is actually just 8 ounces instead of the 16 ounces of a can. Does someone open up a can and then drink half of an energy drink? Not usually. That means energy drink consumption contributes to more overall calories in the diet of someone who drinks them regularly.
1. Sales of energy drinks grew by 60% in the United States alone in 2008-2012.
2. Only 5% of adults in a recent survey consume up to 7 energy drinks per month.
3. Only 2% of adults consume more than 10 energy drinks per month.
4. Energy shots make up just 18% of the energy drink market.
5. In total US sales of energy drinks, revenues reached $12.5 billion in 2012.
6. Energy drink consumption rates are the lowest of any RTD beverage.
7. As energy drink sales grow stronger, the sales of traditional beverages that contain caffeine, especially colas and other soft drinks, are declining.
Takeaway: Although concerns for energy drinks are high, the consumption of energy drinks is actually rather low amongst the population. This means that there is a lot of room for growth in this market that provides a premium drink for a premium price. If consumers are willing to pay more for a better product, an explosion of use may be upcoming soon around the world for these drinks… and that might just mean a spike in health care related items too.