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Sports and Energy Drinks - UK - August 2015

Published By :

Mintel

Published Date : Sep 2015

Category :

Non-Alcoholic Drinks

No. of Pages : N/A


After a period of robust growth, sales in the sports and energy market lost momentum in 2014. While energy drinks are doing well, this has been offset by the poor performance of the sports drinks segment. The energy drinks segment makes up the vast majority of the market. This has been supported by new product launches and marketing, as well as the enduring popularity of the energy proposition. The regulation requiring additional caffeine labelling introduced in December 2014 and concern over the high caffeine content of energy drinks could however dampen demand.

Overview

What you need to know
Covered in this report

Executive Summary

The market
Figure 1: UK value sales of sports and energy drinks, 2010-20
Sugar attracts negative media in 2014
Changes to EU regulation affect energy drinks
Companies brands and innovation
Lucozade maintains the lead in sports drinks
Lucozade is top of energy drinks
Energy drinks dominate ad spend
Lucozade is most trusted and used brand
Low-calorie versions of energy drinks attract new launches
Operators vie for a natural positioning
The consumer
Half of adults drink sports or energy drinks
Figure 2: Usage of sports and energy drinks, May 2015
Figure 3: Frequency of sports and energy drinks usage, May 2015
Sugar concerns are a key barrier to drinking sports and energy drinks
Figure 4: Barriers to drinking sports drinks, May 2015
Artificial ingredients put off a third of low/non-users
Figure 5: Barriers to drinking energy drinks, May 2015
Figure 6: Interest in selected sports and energy drinks product concepts, May 2015
Fruit juice/juice drinks/smoothies most popular sports drinks alternative
Fortified water appeals as an alternative to sports and energy drinks
Figure 7: Drinks seen as alternatives to sports drinks, May 2015
Figure 8: Drinks seen as alternatives to energy drinks, May 2015
Majority consider energy drinks not suitable for children
High caffeine labels are a put off for large minority
Figure 9: Attitudes towards sports and energy drinks, May 2015
What we think

Issues and Insights

Alternatives to refined sugar offer route for operators to address health concerns
The facts
The implications
Artificial ingredients remain a key barrier to use of sports drinks
The facts
The implications
Lower caffeine energy drinks could diminish worries over caffeine intake
The facts
The implications

The Market – What You Need to Know

Growth in sports and energy drink market plateaus
Modest growth expected for the market
Sports drinks continue to struggle
Sugar attracts negative media in 2014
Increase in incomes should support sales
Changes to EU regulation affect energy drinks

Market Size and Forecast and Segment Performance

Growth in sports and energy drink market plateaus
Figure 10: UK value and volume sales of sports drinks and energy drinks, 2010-20
Figure 11: UK value sales of sports and energy drinks, 2010-20
Figure 12: UK volume sales of sports and energy drinks, 2010-20
Energy drinks support growth in the market
Figure 13: UK value and volume sales of energy drinks, 2010-20
Figure 14: UK value sales of energy drinks, 2010-20
Figure 15: UK volume sales of energy drinks, 2010-20
Sports drinks continue to struggle
Figure 16: UK value and volume sales of sports drinks, 2010-20
Figure 17: UK value sales of sports drinks, 2010-20
Figure 18: UK volume sales of sports drinks, 2010-20

Market Drivers

Sugar attracts negative media in 2014
Aging population poses challenge to sports and energy drink market
Figure 19: Trends in the age structure of the UK population, 2010-15 and 2015-20
Consumers find themselves in a better financial situation
Figure 20: Consumers’ financial wellbeing index, February 2009-April 2015
Changes to EU regulation affect energy drinks
EFSA assessment puts safe caffeine limit at 200mg per dose
Caffeine functional claims put on hold during safety assessment

Key Players – What You Need To Know

Lucozade maintains the lead in sports drinks
Lucozade is top of energy drinks
Energy drinks dominate ad spend
Lucozade is most trusted and used brand

Market Share

Lucozade leads sports drinks
Figure 21: UK retail sales of leading brands in sports drinks, by value and volume, 2013/14* and 2014/15**
Figure 22: UK retail sales of leading manufacturers in sports drinks, by value and volume, 2013/14* and 2014/15**
Lucozade top of energy drinks
Red Bull holds its position as second largest player in energy drinks
Emerge enjoys strong growth
Figure 23: UK retail sales of leading brands in energy drinks, by value and volume, 2013/14* and 2014/15**
Figure 24: UK retail sales of leading manufacturers in energy drinks, by value and volume, 2013/14* and 2014/15**

Brand Communication and Promotion

Energy drinks enjoy larger share of adpsend
Figure 25: Recorded above-the-line, online display and direct mail total advertising expenditure on sports and energy drinks, by leading operators, 2011-15*
Suntory increases its adspend in 2014
Red Bull

Brand Research – Sports and Energy Drinks

What you need to know
Brand map
Figure 26: Attitudes towards and usage of selected brands, June 2015
Key brand metrics
Figure 27: Key metrics for selected brands, June 2015
Brand attitudes: Rockstar, Relentless and Monster share similar image
Figure 28: Attitudes, by brand, June 2015
Brand personality: Monster and Red Bull enjoy strongest upbeat image
Figure 29: Brand personality – Macro image, June 2015
Lucozade has an advantage on tradition and taste
Figure 30: Brand personality – Micro image, June 2015
Brand analysis
Lucozade’s history and scientific background helps to boost trust
Figure 31: User profile of Lucozade, June 2015
Red Bull’s image is strongly influenced by marketing activity
Figure 32: User profile of Red Bull, June 2015
Monster shares similar image to Relentless and Rockstar but benefits from greater familiarity
Figure 33: User profile of Monster, June 2015
Relentless lacks the upbeat image of Monster or Rockstar
Figure 34: User profile of Relentless, June 2015
Rockstar has a lower perception of masculinity
Figure 35: User profile of Rockstar, June 2015

Launch Activity and Innovation

Low/no/reduced sugar claims remain rare
Figure 36: Share of launches in the UK sports and energy drinks market featuring a low/no/reduced sugar or calorie claim, 2010-14
Low-calorie versions of energy drinks attract new launches
Operators vie for a natural positioning
Figure 37: Share of launches in the UK sports and energy drinks market featuring a low/no/reduced sugar or calorie claim, 2010-2015
Energy drinks look to other drinks categories

The Consumer – What You Need To Know

Half of adults drink sports or energy drinks
Men, 16-24s and urbanites stand out as core users
Sugar and additives concerns impact the market
Sugar- and sweetener-free concepts spark interest
Large minority put off energy drinks by high-caffeine labels
Smaller formats and low-caffeine drinks can quell concerns
Water-based sports and energy drinks stand to appeal

Sports and Energy Drinks Usage

Half of adults drink sports or energy drinks
Figure 38: Usage of sports and energy drinks, May 2015
Figure 39: Frequency of sports and energy drinks usage, May 2015

Barriers to Drinking Sports and Energy Drinks and Product Enticements

Sugar concerns are a key barrier to drinking sports and energy drinks
Unrefined sources of sweetness offer route for operators to address sugar concerns
Figure 40: Barriers to drinking sports drinks, May 2015
Artificial ingredients put off a third of low/non-users
Large minority prefer water to hydrate
Minority of infrequent users deem energy drinks unnecessary
Figure 41: Barriers to drinking energy drinks, May 2015
One in five prefers to drink coffee for energy
Figure 42: Interest in selected sports and energy drinks product concepts, May 2015

Interest in Alternatives to Sports and Energy Drinks

Fruit juice/juice drinks/smoothies most popular sports drinks alternative
Fortified water appeals as an alternative to sports and energy drinks
Figure 43: Drinks seen as alternatives to sports drinks, May 2015
Carbonated soft drinks seen as an alternative to energy drinks
Figure 44: Drinks seen as alternatives to energy drinks, May 2015

Attitudes towards Sports and Energy Drinks

Majority consider energy drinks not suitable for children
High-caffeine labels are a put-off for large minority
Widespread confusion around caffeine intake
Natural ingredients resonate widely
Smaller size bottles appeal to one in five
Dilutable energy drinks can address caffeine concerns
Figure 45: Attitudes towards sports and energy drinks, May 2015

Appendix – Data Sources, Abbreviations and Supporting Information

Abbreviations
Brand map
Correspondence analysis

Appendix – Market Size and Forecast

Fan chart forecast
Best- and worst-case forecasts
Figure 46: UK value sales of sports drinks and energy drinks, Best- and worst-case forecasts, 2015-20
Figure 47: UK volume sales of sports drinks and energy drinks, Best- and worst-case forecasts, 2015-20
Figure 48: UK value sales of sports drinks, Best- and worst-case forecasts, 2015-20
Figure 49: UK volume sales of sports drinks, Best- and worst-case forecasts, 2015-20
Figure 50: UK value sales of energy drinks, Best- and worst-case forecasts, 2015-20
Figure 51: UK volume sales of energy drinks, Best- and worst-case forecasts, 2015-20

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