beverages

Energy Drinks Fail To Attract New Customers

Energy-Drink

While sales of energy drinks and shots have been adrenalized in recent years -- leaping 136% between 2005 and 2009 -- the category is showing signs of enervation on the new-customer front, according to Mintel.

Nearly two thirds (74%) of U.S. consumers recently surveyed said that they do not consume energy drinks/shots, and 69% of non-users also say that they're not interested in trying them, Mintel reports.

Americans' per-capita annual consumption of energy drinks is 3.05 liters, and the research firm's Global Market Navigator shows that the drinks' market penetration remained flat, at 15% of all adults (18 and over), between 2007 and 2009. In fact, the category added just one million new adult users during those years, in contrast to the 9.3 million added between 2005 and 2007.

At this stage, energy drink makers are well aware of their heavy dependence on continued purchases by an existing group of core customers and eager to win new converts, says Mintel senior analyst Garima Goel Lal, who points to opportunities on both the marketing and product formulation fronts.

advertisement

advertisement

High prices (48%), too much caffeine (43%) and a general feeling that energy drinks/shots "just aren't good for you" (43%) are the primary reasons cited by those who report no consumption of energy drinks/shots during the past three months.

However, more sampling programs might be a partial solution: 16% of non-users of energy drinks, and 14% of non-users of shots, indicate that they would be likely to try one of these beverages if free samples were offered in the stores in which they usually shop.

Further, 14% of drink non-users and 11% of shot non-users say that they would be more likely to try the beverages if they contained natural ingredients.

"The fact that 7 out of 10 people are not interested in the energy drink category suggests the need for manufacturers to develop products aimed at a wider audience," including offering more flavors and products with less sugar and caffeine, points out Goel Lal.

As for consumers who do drink energy beverages, 71% of drink users and 80% of shot users report consuming them for an energy boost, 57% of drink users employ them to stay awake, and 60% of shot users rely on them to boost mental alertness. Existing users are more likely to use energy shots (30%) than energy drinks (23%) to enhance sports performance.

Next story loading loading..