Energy Drink Market Exploding: Mintel

CHICAGO—The energy drink market at retail is valued at $4.8 billion, according to a new market research report from Mintel, which represents a 400 percent growth rate from 2003 figures. Rising sales can be attributed to the growth of the consumer market; in 2003, 9 percent of adults reported consuming energy drinks, while 15 percent did so in 2008. Among teenagers, 35 percent said they regularly consume energy drinks, up from 19 percent in 2003.

“Energy drinks have quickly become a daily beverage choice,” said Krista Faron, senior new product analyst at Mintel. “As more Americans use energy drinks, we've seen a rise in products being launched with innovative new ingredients, claims and consumer targets.”

Mintel Global New Products Database (GNPD) tracked just 80 new U.S. energy drink launches in 2003. But in 2007, the firm tracked 187 and already in 2008, Mintel GNPD has seen more than 270 new energy drinks launched in the United States.

The “energy” market also shows the potential to expand into new food and beverage areas, according to the report. “Energy bars are familiar to many Americans,” Faron said, “but other energized foods, such as candy, chips, milk and cereal, are definitely not. We expect the concept of ‘energy’—both physical and mental—to greatly influence food product development.”

Through Mintel GNPD, Faron has seen “energy” ingredients moving from drinks into food. Ginseng, guarana and taurine—popularized by energy drinks—now appear in snacks like NRG Phoenix Fury chips with taurine or Full Charge sunflower seeds with ginseng and guarana. Caffeine is also emerging in foods from energy bars to cereals, such as Morning Spark's caffeine-fortified instant oatmeal. Superfoods, recognized for high antioxidant content, are now added to foods for mental and physical performance benefits. The Think Green Superfood Energy Bar, for example, includes blueberries and noni powder.

Source: Mintel