Current Status of the Beverage Industry in 2019: Energy Drinks Maintain Competitive Advantage



Current Status of the Beverage Industry in 2019: Energy Drinks Maintain Competitive Advantage
 




Gary Hemphill, managing director of New York Beverage Marketing (BMC) Research, pointed out in August 2018 that current energy drinks and energy shots are moving in two different directions. Functionality, taste and convenience remain key drivers of growth in energy drinks and energy solutions, but after years of development, the performance of the energy liquid segment has been razed to the ground.

 

According to information resources company (IRI), in the 52 weeks ended May 19, sales of energy liquids in several stores and convenience stores in the United States were slightly higher than $1 billion, a decrease of 1.4%. In contrast, the energy beverage market has grown steadily, with sales reaching $11.6 billion, an increase of 11.3% year-on-year.



Susan Viamari, vice president of IRI, pointed out in the August 2018 edition of Beverage Industry that consumers drink energy drinks not only to quickly replenish energy in a portable form, but also that consumers drink beverages today with functionality and flavor. “Today's beverages are balancing these two qualities, making energy drinks easier to drink. As a result, the competition for energy drinks has become more intense.”

  

Leading energy drink brand

Brand

Sales (US$)

Year-on-year growth (%)

market share(%)

Year-on-year growth (%)






Red Bull

$2,899,032,484

0.9

24.9

-2.5

Claw

$1,762,748,352

7.1

15.1

-0.6

Red Bull without sugar

$782,584,189

6.8

6.7

-0.3

Claw 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

Low card claw

$278,838,789

-3.8

2.4

-0.4

Magic claw Mega

$236,832,085

-1.4

2.0

-0.3

Blue can of red bull

$226,678,617

10.7

1.9

0.0

Yellow pot red cow

$209,801,405

16.0

1.8

0.1

total*

$11,644,140,591

11.3

100.0


*Includes unlisted brands



Source: Chicago Information Resources Corporation (IRI). In the 52 weeks ending May 19, US supermarkets, pharmacies, mass merchandisers, gas stations and convenience stores, the overall sales of military daily supply and marketing stores and selected member clubs and dollar retail chains.



In June 2017, Packaged Facts released a report titled “Ready Drinks: Cooking Trend Tracking Series”, which stated that high-end functional beverages, high-end and slow-release caffeine are at the forefront of the overall category of functional beverages. “High-end will eventually appear in most beverage categories, so the first example to appear in the energy drink category may not be surprising.”

  

Leading energy liquid brand

Brand

Sales (US$)

Year-on-year growth (%)

market share(%)

Year-on-year growth (%)






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

total*

$1,045,982,835

0.0

100.0


*Includes unlisted brands

Source: Chicago Information Resources Corporation (IRI). In the 52 weeks ending May 19, US supermarkets, pharmacies, mass merchandisers, gas stations and convenience stores, the overall sales of military daily supply and marketing stores and selected member clubs and dollar retail chains.

 

Packaged Facts pointed out in the report that some brands such as zümXR are controlling the way caffeine is delivered in energy drinks. This technology is based on a patented time-release microbead that is stable in beverages at normal pH levels and can be added to beverage or beverage powder formulations for longer lasting release of caffeine.

 

Although hybrid energy drinks are a smaller segment of the energy drink and energy liquid categories, IRI's Viamari points out that mixed energy drinks are constantly stealing shares from the energy liquid market. She explained that mixed energy drinks are made up of concentrated liquids or powders that can be added to the water, allowing them to customize the product experience. According to IRI data, sales in this segment reached nearly $110 million in the 52 weeks ending May 19, achieving a double-digit growth of 14.2% in several stores and convenience stores.

 

BMC's Hemphill predicts that the energy drink category will grow at the rate of the single digit middle finger in the next few years. IRI's Viamari also agrees, and she points out that consumers are in a good position to grow as they are interested in the features and conveniences of the category. In the June edition of Beverage Industry, she also said that natural ingredients and a unique blend of flavors will increase consumer interest. “To seize this opportunity, (mass consumer goods) and retailers must keep up with key trends such as natural ingredients, exciting and unexpected flavors/mixed flavors, and value proposition.”

 

“People's consumer goods must also look for inspiration from neighboring categories – considering carbonation, no specific ingredient labeling, strengthening protein/vitamins/minerals, etc.”