Nutritional Outlook

Nutritional Outlook, May 2018

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■ NUTRITIONAL OUTLOOK 14 GLOBAL MARKETING MAY 2018 MARKETING The Enduring Energy Drink Despite a slowdown in product innovation, energy drink sales continue to rise. BY INNOVA MARKET INSIGHTS G ood news for energy drinks! T ey con- tinue to outperform the overall soft drinks market in terms of value, with their share of the category rising to 8% in 2017 and their global value reaching about €44 billion. T is growth is happening despite an appar- ent slowdown in product innovation. Fewer new energy drinks have launched over the past f ve years. In 2017, energy drink new product launches accounted for less than 2.7% of global soft drink launches, an even smaller share than 5% in 2012. T ere are a few reasons for this slowdown. One is the fact that there is likely relatively limited innovation opportunities in the cat- egory. Another factor is the dominance of multinational brands in many regions. As the market has become more established, and mainstream soft drink companies have entered and acquired or developed global energy drink brands, the number of small- er, diverse brands entering the market has shrunk substantially in the face of the global brands investing in high levels of product promotion. T e U.S., with its relatively mature market, has followed a similar pattern as the global market, with energy drink launch numbers falling to account for just 2.8% of total soft drink introductions in 2017, putting it only marginally ahead of the global f gure. T e U.S. market is dominated by non-aseptic, mainly canned drinks from iconic brands such as Red Bull, Monster, and Rockstar. T ese gi- ants are focusing heavily on adding new for- mats and f avors. Red Bull, for example, has continued to develop its Editions range, with sugar-free Purple (açai berry) and Lime (limeade) f a- vors added to the range in early 2017. T ey join the existing Red (cranberry), Blue (blue- berry), Yellow ("tropical"), Orange (tanger- ine), and Green (kiwi) f avors. T e company has already lined up its limited-edition f avor for the summer of 2018: a Coconut Twist in a white and silver can. Ongoing Trends Among the new energy drinks that are launching, there are a few notable, continu- ing trends. A continued focus on sugar-free formulas is no surprise in the light of rising global pres- sure to reduce sugar content in soft drinks. "Low" and "light" versions of energy drinks— including what several energy drink brands are marketing as "zero" drinks (meaning ei- ther zero calorie or zero sugar)—accounted for over 40% of U.S. energy drink launches in 2017. Low-calorie claims were used on 39% of new energy drink launches, and sugar-free claims were used on 25% of new launches, indicating the considerable overlap and the rising popularity of these "zero" products. "Low" and "light" claims were the most commonly used health claims for launches, after energy/alertness claims, which, per- haps not surprisingly, were featured on virtu- ally all introductions. Clean-label claims took third place, used by nearly 35% of launches in 2017. Here, or- ganic claims were the most popular, featured SHUTTERSTOCK.COM/ ARCHY13

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