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Sports and Energy Drinks - UK - July 2013

Published By :

Mintel

Published Date : Jul 2013

Category :

Energy Drinks

No. of Pages : 261 Pages


Building associations between energy drinks and everyday situations such as work and commuting, rather than extreme lifestyles, could help to increase the relevancy of energy drinks among current non-users.
TABLE OF CONTENT

Introduction
Definition
Excluded
Abbreviations
   
Executive Summary
The market
Figure 1: Market size and forecast for the UK sports and energy drinks market, by value, 2008-18
Forecast
Market factors
Health remains on consumers’ agenda
The drinks’ price premium may hamper growth
Companies, brands and innovation
Lucozade and Red Bull continue to lead the market
Figure 2: Shares of leading brands in the UK take-home sports and energy drinks market, by value, 2012/13*
Energy drinks continue to dominate NPD
Adspend drops off in 2012
The consumer
More than two fifths drink sports and energy drinks
Figure 3: Usage of sports and energy drinks, May 2013
Health and natural ingredients spark majority interest
Figure 4: Attitudes towards sports and energy drinks, May 2013
The market faces a challenge in convincing non-users of the drinks’ benefits
Figure 5: Reasons for not drinking sports or energy drinks, May 2013
What we think

Issues in the Market
How can associations with a wider range of occasions help sports and energy drinks expand their user base?
What new competition is the market facing?
How much of a threat do safety concerns about energy drinks’ caffeine levels pose to the market?
What measures can be taken to overcome people’s scepticism about the drinks’ functionality?

Trend Application
Trend: Retired for Hire
Trend: Transumers
Mintel Futures: Brand Intervention

Market Drivers
Key points
Brands need to invest further in improving the market’s health image
Energising properties should appeal to consumers with hectic lifestyles
People are becoming more active, posing opportunities for sports drinks
Figure 6: Participation in moderate intensity sport, at least one 30-minute session per week, England 2005/06-2011/12*
Price premium may hamper growth
Figure 7: Prices per litre of selected soft drinks, June 2013
Figure 8: Consumers’ perceptions of their financial situation, April 2009-April 2013
Demographic changes pose both opportunities and challenges
Figure 9: Projected trends in the age structure of the UK population, 2012-17
Ageing population represents a threat to sports and energy drinks…
… whereas growth of 25-34s and C2s bodes well for market

Strengths and Weaknesses
Strengths
Weaknesses

Who’s Innovating?
Key points
Sports drinks boost their share of total NPD in 2012
Figure 10: New product launches in the UK sports and energy drinks market, by segment, 2009-13*
Own-label players step up NPD
Figure 11: Share of NPD in the UK sports and energy drinks market, branded vs own label, 2009-13*
Figure 12: New product launches in the UK sports and energy drinks market, by most active brands, 2012
Fruit and berry flavours on the rise
Figure 13: New product launches in the UK sports and energy drinks market, by flavour component, 2010-13*
NPD focuses around slimming and naturalness
Slimming claim leaps up in 2012
Figure 14: New product launches in the UK sports and energy drinks market, by selected claims, 2009-12
Natural ingredients become more widely used
Feminising energy drinks through packaging innovation
Smaller pack sizes continue to gain share of total new launches
Figure 15: New product launches in the UK sports and energy drinks market, by selected pack sizes, 2009-12

Market Size and Forecast
Key points
The market’s growth slows in 2012
Figure 16: UK value and volume sales of sports and energy drinks, 2008-18
The future
Figure 17: Market size and forecast for the UK sports and energy drinks market, by value, 2008-18
Figure 18: Market size and forecast for the UK sports and energy drinks market, by volume, 2008-18
Energy drinks drive overall sales
Figure 19: UK value and volume sales of Energy drinks, 2008-18
Figure 20: Value sales and forecast for the UK energy drinks market, 2008-18
Sports drinks will maintain their niche position
Figure 21: UK value and volume sales of sports drinks, 2008-18
Figure 22: Value sales and forecast for the UK Sports drinks market, 2008-18
Forecast methodology

Segment Performance
Key points
Figure 23: UK retail value sales of sports and energy drinks, by type, 2011 vs 2012
Another year of growth for energy drinks…
… whereas sports drinks fail to cash in on the summer of sports

Market Share
Key points
Top three manufacturers hold 75% of total market
Figure 24: Leading manufacturers’ shares in the UK take-home sports and energy drinks market, by value, 2012/13*
Figure 25: Leading manufacturers’ sales and shares in the UK sports and energy drinks market, by value and volume, 2011/12 and 2012/13
Lucozade and Red Bull fail to keep up with the overall market’s pace
Figure 26: Leading brands in the UK take-home sports and energy drinks market, by value and volume, 2011/12-2012/13
Challenger brands pose an increasing threat
Own-label outperforms most brands

Companies and Products
AG Barr
Background
Product range and innovation
Recent activity and promotion
Britvic/PepsiCo
Background
Product range and innovation
Recent activity and promotion
Coca-Cola
Background
Product range and innovation
Recent activity and promotion
GSK
Background
Product range and innovation
Recent activity and promotion
Red Bull
Background
Product range and innovation
Recent activity and promotion

Brand Research
Brand map
Figure 27: Attitudes towards and usage of brands in the sports and energy drinks sector, March 2013
Correspondence analysis
Brand attitudes
Figure 28: Attitudes, by sports and energy drinks brand, March 2013
Brand personality
Figure 29: Sports and energy drinks brand personality – macro image, March 2013
Figure 30: Sports and energy drinks brand personality – micro image, March 2013
Brand experience
Figure 31: Sports and energy drinks brand usage, March 2013
Figure 32: Satisfaction with various sports and energy drinks brands, March 2013
Figure 33: Consideration of sports and energy drinks brands, March 2013
Figure 34: Consumer perceptions of current sports and energy drinks brand performance, March 2013
Figure 35: Sports and energy drinks brand recommendation – Net Promoter Score, March 2013
Brand index
Figure 36: Sports and energy drinks brand index, March 2013
Figure 37: Sports and energy drinks brand index vs. recommendation, March 2013
Target group analysis
Figure 38: Target groups, March 2013
Figure 39: Sports and energy drinks brand usage, by target groups, March 2013
Group One – Conformists
Group Two – Simply the Best
Group Three – Shelf Stalkers
Group Four – Habitual Shoppers
Group Five – Individualists

Brand Communication and Promotion
Key points
Adspend drops off in 2012
Figure 40: Total above-the-line advertising expenditure in the sports and energy drinks market, 2009-2013*
Energy drinks regain share
Figure 41: Total above-the-line advertising expenditure in the sports and energy drinks market, by segment, 2009-2013*
Red Bull considerably steps up its above-the-line adspend
Figure 42: Above-the-line advertising expenditure in the sports and energy drinks market, by leading advertisers, 2012
Figure 43: Above-the-line advertising expenditure on sports and energy drinks, by leading brands, 2012
TV advertising accounts for half of expenditure
Figure 44: Advertising expenditure in the sports and energy drinks market, by media type, 2010-13*

Channels to Market
Key points
Take-home dominates but on-premise gains share
Figure 45: Value and volume sales of sports and energy drinks in the UK, by channel, 2010-12
Impulse channel remains strong
Figure 46: Value sales in the UK take-home sports and energy drinks market, by channel, 2010-12

Consumer – Usage
Key points
More than two fifths drink sports and energy drinks
Figure 47: Usage of sports and energy drinks, May 2013
Usage peaks among under-25 males
Figure 48: Usage of sports and energy drinks, by age, May 2013
Usage remains infrequent
Figure 49: Frequency of drinking sports and/or energy drinks, May 2013
25-34s most likely to have cut back on consumption
Figure 50: Trends in consumption of sports and energy drinks, May 2013

Consumer – Choice Factors
Key points
Low price deemed to be most important factor
Figure 51: Factors influencing choice of sports and energy drinks, May 2013
Further scope for healthier variants exists
Emphasising nutritional benefits should help to convey added value

Consumer – Users’ Attitudes Towards Sports and Energy Drinks
Key points
Health and natural ingredients spark majority interest
Figure 52: Attitudes towards sports and energy drinks, May 2013
Current formats lack convenience
Consumers want guidance on daily intake

Consumer – Barriers for Consuming Sports and Energy Drinks
Key points
Almost half of consumers do not feel they need the drinks
Figure 53: Reasons for not drinking sports or energy drinks, May 2013
Water is more effectively harnessing the hydration message than sports drinks
Scepticism about the drinks’ functionality fuels poor value perception
Taste remains an issue

Consumer – Perceptions of Selected Types of Soft Drinks
Key points
Attributes associated with selected types of soft drinks
Figure 54: Correspondence analysis, sports and energy drinks, March 2013
Figure 55: Characteristics associated with selected types of soft drinks, March 2013

Appendix – Market Size and Forecast
Figure 56: Best- and worst case forecasts for the total UK sports and energy drinks market, by value, 2013-18
Figure 57: Best- and worst case forecasts for the total UK sports and energy drinks market, by volume, 2013-18
Figure 58: Best- and worst case forecasts for the UK sports drinks market, by value, 2013-18
Figure 59: Best- and worst case forecasts for the UK sports drinks market, by volume, 2013-18
Figure 60: Volume sales and forecast for the UK sports drinks market, 2008-18
Figure 61: Best- and worst case forecasts for the UK energy drinks market, by value, 2013-18
Figure 62: Best- and worst case forecasts for the UK energy drinks market, by volume, 2013-18
Figure 63: Volume sales and forecast for the UK energy drinks market, 2008-18

Appendix – Brand Research
Figure 64: Brand usage, March 2013
Figure 65: Brand commitment, March 2013
Figure 66: Brand momentum, March 2013
Figure 67: Brand diversity, March 2013
Figure 68: Brand satisfaction, March 2013
Figure 69: Brand recommendation, March 2013
Figure 70: Brand attitude, March 2013
Figure 71: Brand image – macro image, March 2013
Figure 72: Brand image – micro image, March 2013
Figure 73: Profile of target groups, by demographics, March 2013
Figure 74: Psychographic segmentation, by target groups, March 2013
Figure 75: Brand usage, by target groups, March 2013
Brand index
Figure 76: Brand index, March 2013

Appendix – Brand Communication and Promotion
Figure 77: Above-the-line advertising expenditure in the sports and energy drinks market, by top 10 advertisers, 2009-12*
Figure 78: Above-the-line advertising expenditure in the sports and energy drinks market, by top 10 brands, 2009-12*

Appendix – Consumer – Usage of Sports and Energy Drinks
Figure 79: Usage of sports and energy drinks, May 2013
Figure 80: Usage of sports drinks (any), by demographics, May 2013
Figure 81: Usage of energy drinks (any), by demographics, May 2013
Figure 82: Usage of branded sports drinks, by demographics, May 2013
Figure 83: Usage of own-label sports drinks, by demographics, May 2013
Figure 84: Usage of branded energy drinks, by demographics, May 2013
Figure 85: Usage of own-label energy drinks, by demographics, May 2013
Figure 86: Usage of energy shots, by demographics, May 2013
Figure 87: Trends in consumption of sports drinks, May 2013
Figure 88: Trends in consumption of sports drinks, by demographics, May 2013
Figure 89: Trends in consumption of energy drinks, May 2013
Figure 90: Trends in consumption of energy drinks, by demographics, May 2013
Figure 91: Attitudes towards statements on sports and energy drinks, by usage of sports drinks, May 2013
Figure 92: Attitudes towards statements on sports and energy drinks, by usage of energy drinks, May 2013
Figure 93: Factors influencing choice of sports drinks, by usage of sports drinks, May 2013
Figure 94: Factors influencing choice of energy drinks, by usage of energy drinks, May 2013

Appendix – Consumer – Choice Factors
Figure 95: Factors influencing choice of sports drinks, May 2013
Figure 96: Most popular factors influencing choice of sports drinks, by demographics, May 2013
Figure 97: Next most popular factors influencing choice of sports drinks, by demographics, May 2013
Figure 98: Factors influencing choice of energy drinks, May 2013
Figure 99: Most popular factors influencing choice of energy drinks, by demographics, May 2013
Figure 100: Next most popular factors influencing choice of energy drinks, by demographics, May 2013
Figure 101: Factors influencing choice of sports drinks, by trends in consumption of sports drinks, May 2013
Figure 102: Factors influencing choice of sports drinks, by usage of sports drinks, May 2013
Figure 103: Factors influencing choice of energy drinks, by trends in consumption of energy drinks, May 2013
Figure 104: Factors influencing choice of energy drinks, by usage of energy drinks, May 2013

Appendix – Consumer – Attitudes Towards Sports and Energy Drinks
Figure 105: Attitudes towards sports and energy drinks, May 2013
Figure 106: Agreement with the statements ‘There should be more healthier varieties’ and ‘There should be more drinks made with natural colourings/flavours’, by demographics, May 2013
Figure 107: Agreement with the statements ‘It’s hard to justify the price of premium brands’ and ‘More guidance on the recommended daily limits should be provided’, by demographics, May 2013
Figure 108: Agreement with the statements ‘There should be more convenient formats’ and ‘I prefer the product to come in re-usable packaging’, by demographics, May 2013
Figure 109: Agreement with the statements ‘They fit in with my lifestyle’ and ‘Own-label varieties offer the same functionality as branded’, by demographics, May 2013
Figure 110: Agreement with the statements ‘It’s worth paying more for added benefits’ and ‘They are for young people’, by demographics, May 2013
Figure 111: Agreement with the statement ‘I would feel guilty about drinking them’, by demographics, May 2013

Appendix – Consumer – Barriers for Consuming Sports and Energy Drinks
Figure 112: Reasons for not drinking sports drinks, May 2013
Figure 113: Most popular reasons for not drinking sports drinks, by demographics, May 2013
Figure 114: Next most popular reasons for not drinking sports drinks, by demographics, May 2013
Figure 115: Reasons for not drinking energy drinks, May 2013
Figure 116: Most popular reasons for not drinking energy drinks, by demographics, May 2013
Figure 117: Next most popular reasons for not drinking energy drinks, by demographics, May 2013

Appendix – Consumer – Perceptions of Selected Types of Soft Drinks
Figure 118: Perceptions of selected types of soft drinks, March 2013
Figure 119: Perceptions of energy and sports drinks, by demographics, March 2013
Figure 120: Perceptions of energy and sports drinks, by demographics, March 2013, continued
Figure 121: Perceptions of carbonated soft drinks, by demographics, March 2013
Figure 122: Perceptions of carbonated soft drinks, by demographics, March 2013, continued
Figure 123: Perceptions of juice drinks, by demographics, march 2013
Figure 124: Perceptions of juice drinks, by demographics, march 2013, continued
Figure 125: Perceptions of unflavoured bottled water, by demographics, March 2013
Figure 126: Perceptions of unflavoured bottled water, by demographics, March 2013, (continued)
Figure 127: Perceptions of flavoured bottled water, by demographics, March 2013
Figure 128: Perceptions of flavoured bottled water, by demographics, March 2013, (continued)
Figure 129: Perceptions of squash/cordials, by demographics, March 2013
Figure 130: Perceptions of squash/cordials, by demographics, March 2013, (continued)

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