Power Brands Energy
Power Brands Consulting talks about energy drinks and their position in the beverage industry. The beverage consulting firm believes that energy drinks still have a lot of place to grow, a fact backed up by a report by Dutch research firm Market Insights. According to them, last year there were 124 new product launches in this market segment (energy dinks and shots). The Power Brands beverage specialists noticed a general trend in the industry, which is influencing energy drinks as well, where more consumers are demanding healthier products with reduced calorie and sugar content. Energy drinks are still using ingredients associated with boosting energy in large quantities, such as vitamin B12 (43.3 percent of products), vitamin B6 (40.6 percent), caffeine (31.5 percent), vitamin B3 (26 percent) and taurine (21.2 percent), but they are followed closely by natural ingredients such as gaurana, green tea catechins and yerba mate. Furthermore, they noted that there is a rise in the number of products that use natural caffeine alternatives (such as black or green tea, coffee beans, gaurana, yerba mate and other similar botanicals) instead of synthetic caffeine and added that those products are quickly becoming the norm. The trend can be observed in the increase in the number of products positioned as natural (25 percent of products), being the third most popular positioning, but still behind energy and alertness, which is the most popular positioning. The firm also noted an increase in demand for sustained energy over time, driven by a new demographic group that consists of female and older consumers, which are not consuming energy drinks for the traditional instant “rush”, mainly aimed at athletes and young consumers. Different preparations of timed-release caffeine have been developed for these demographic groups, along with natural ingredients that allow companies to claim their product is 100% natural.
The Power Brands beverage specialists stated that it is hard to predict other future trends for energy drinks, as it is an always-changing market. He noted the constant increase of can sizes in the past and the current domination of energy shots as an example of a constantly changing energy delivery mechanism. Given their convenience, they believe that energy powdered mixes and effervescent tablets could experience an increase in demand in the future, as they are ultraportable, efficient and convenient for increasingly demanding consumers.