2007 marks the year that the global energy drinks phenomenon, Red Bull, celebrates 20 years since it debuted in Austria, the home market of co founder, Dietrich Mateschitz.

Twenty years on and the brand remains a key driver in the energy drinks category, which Canadean's recently published Global Sports & Energy Drinks Report predicts will grow by 13% globally by the end of 2007. This would take the market to more than 4 billion litres and would mean that annual growth has averaged 19% per year since 2001. In per capita terms, at just 0.7 litres there remains plenty of room for growth in the market and prospects remain very positive.

Today, Austrians drink around six litres each of energy drinks and demand remains vibrant, consistently registering double digit growth. Austria may be the market where Red Bull was first launched but Thailand can lay claim to being the birthplace of Red Bull. It is Thailand that can lay claim to being the spiritual home to the energy drink category and where the concept for Red Bull was first developed. In contrast to Austria however, sales of energy drinks in Thailand remain more muted and although still increasing have slowed to more modest rates.

Canadean report that both Austrians and Thai's are among the top ten energy drink consumers in the world but are out drunk in per capita terms by New Zealanders and the Irish. New Zealanders and the Irish drank a remarkable 32 litres each in 2006 and demand continues to rise. These consumers may drink the most individually but the USA is by far the biggest market for energy drinks and in 2007 should pass the billion litre mark.

Demand in the USA is projected to represent 29% of worldwide energy drink sales by the end of 2007. Sales are buoyant there and increased by almost 50% in 2006 to make it the most dynamic soft drink category. All of the major soft drinks players are now actively participating and energy drinks are gaining presence in quick serve restaurants vending, convenience and anywhere where on-the-go consumption is prevalent.

From a regional perspective, Asia has been the traditional stronghold for the category and up until 2005 the region accounted for more than half of all sales. Shrinking sales in Japan and South Korea and a downturn in the important Chinese market, where vitamin energy drinks have fallen out of favour, is expected to result in Asia's global importance being reduced to less than 40% of world sales in 2007. North America is the main benefactor.

In the case of energy drinks, Canadean conclude that the outlook continues to look bright.

The company forecast that by the end of 2008 the category will lose its status as the smallest global soft drinks category, overtaking iced coffee. Between 2008 and 2010, a compound annual growth rate (CAGR) of 11% is anticipated, a rate of growth that Red Bull will continue to contribute strongly too, twenty years after its initial introduction into the West European market of Austria.

For further information on Canadean's recently published Global Sports & Energy Drinks Report contact please contact Debra Richards on Tel: +44 (0)1256
394227, email: sales@canadean.com or visit www.canadean.com.

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