Energy Drinks Shows Impressive Stamina
27 November 2013
In only one year global consumption of energy drinks has grown by 15%. Although energy drinks is not a big category in the overall soft drinks sector, consumption has seen steady annual growth, and since 2006 market penetration has doubled.
Despite its relatively high price per litre, energy drinks no longer represents the smallest category in the soft drinks spectrum, overtaking iced/rtd coffee drinks in 2011.
According to a new report from Canadean, the growth is set to continue. By 2018 the average global per capita consumption of energy drinks is expected to be more than two litres, from just over one litre today.
Asia remains the largest centre of energy drinks consumption, but thanks to the growth of the Polish and Russian markets, East Europe was the most dynamic region in 2012. All markets in East Europe were able to register double-digit growth during the year due to the development of competitively priced Private Label options and the introduction of low-priced brands.
While North America is forecast to continue to show the highest increase in per capita consumption, Asia will remain the leading volume driver. In terms of growth, however, the tiny African market is projected to be the most dynamic.
The energy drinks category is also widening in scope, with producers focusing on value-added propositions; new ingredients combinations (flavour, juice, natural components) and packaging formats (shots, upsizing, targeted pack design). However in recent years, energy drinks have amassed a body of opposition sparked by health concerns amplified by adverse publicity. This could potentially have a limiting effect on the category’s advance.
This information is based on findings from the Canadean Report: Global Energy Drinks Report 2013, published in November 2013.