Overall market presentation

THE SITUATION OF THE GLOBAL MARKET NOWADAYS

Energy drinks remain a niche category. According to a study carried out by Euromonitor in 2012, the energy drinks represent only 2,7% of total soft drink consumption, and consequently are the 6^th soft drinks out of the 8 studied. But this is a very growing market : between 2007 and 2011, the energy drinks sector rocketed by more than 10% per year in volume (and reached 4,8 billion liters in 2011), and more than 13% per year in value ($37 billion in 2011), while the the category of other soft drinks (sodas, colas…) are decreasing.

North America is the most important consumer of energy drinks with 36% of the global volume in 2011, far ahead Asia Pacific (22%) and West Europe (17%).

THE NORTH AMERICAN MARKET

In America, Red Bull is the unquestionable leader of the energy drinks sector with 43% market share. Nevertheless, over the past few years, Monster has boomed and reached almost 40% market share. There are more than 2000 brands of energy drinks in North America, and this situation proves that this is a very dynamic and growing market despite of the government health scrutiny. Consequently, the giant brands Redbull and Monster have to face a huge competition.

• Rockstar is an energy drink available in 20 different flavors and well known to be sugar-free. Each can represents less than 10 calories.
• NOS is a Coca-Cola Company brand, just like Full Throttle, and is the fastest growing energy drinks.
• Amp is a Pepsi Co brand.
• Xenergy is an energy drink brand founded in 2004. As Rockstar, Xenergy drinks are sugar free and are available in many flavors.

THE FRENCH MARKET

In France, the energy drinks have been allowed in 2008. Consequently, the soft drink market is still largely dominated by colas (54%). The energy drinks category represents only 1,4% of this market. But it is important to note that in the first semester of 2013, Red Bull reached 0,6%, and consequently the energy drink overtook some famous brands of soft drinks like Nestea, Pulco and Sprite. Red Bull is the leader of energy drinks in the French market with 50% of market share. Well behind, there is Monster with 18% and Burn with 6%. But a huge trend in France is the apparition of private labels in the energy drinks market. They represent in 2013 almost 17% of this market.

Private label products from left to right: Taurine Force (Carrefour), Ginger Energy Sexy (Casino), Ginger Energy Hot (Casino), X-Tense (E-Leclerc)

A NEW TREND ON THE MARKET : THE ENERGY SHOTS

Energy shots are a specialized type of energy drinks sold in little bottles (usually 50 ml). The ingredients of these drinks are the similar to energy drinks : caffeine, vitamins, guarana, ginseng, taurine etc.

This new way to consume the energy drinks is popular above all in the United States, with an offer of more than 250 brands. The most famous of these energy shots is 5-hour Energy, an Indian brand wich owned 90% of market share in 2011.

C.P.

Sources: http://uk.finance.yahoo.com/news/global-energy-drinks-industry-000000042.html / http://247wallst.com/special-report/2013/03/25/americas-most-popular-energy-drinks/2/ / http://www.lefigaro.fr/societes/2013/10/01/20005-20131001ARTFIG00237-les-boissons-energisantes-rencontrent-un-succes-eclatant-en-france.php / http://en.wikipedia.org/wiki/Energy_shot / http://www.energyfiend.com/the-15-top-energy-drink-brands