ResearchWikis Energy Drinks Marketing Research
Energy drinks are non-alcoholic beverages which are intended to provide a quick burst of high energy to the consumer. These may be prepared with a composition of methylxanthines, caffeine, natural flavors, some herbal components or specific vitaminsincluding Vitamins B. They may also contain taurine, guarana, maltodextrin, ginseng,carnitine, inositol, glucuronolactone, creatine and ginkgobiloba. Most products includeartificial sugar. The primary active component is generally caffeine.
The primary consumers of this industry are under 35 years of age and are predominantlymale. Teenager and college students are core target market segments for themanufacturers and consist of the core age group of 12 to 30. A recent survey estimatesthat around 35% percent of energy drink consumers are above 35 years old. Furthermoreenergy drinks with high sugar levels are more popular among children and women, whileenergy drinks with strong taste and flavor are more preferred by male consumers. Recentstudies also indicated that 65% of the energy drinks market consists of male consumers.There are several types of energy drinks products. Different varieties of tea and coffeealong with green tea forms one group. Second are traditional energy drinks such as RedBull and others. In emerging market, however, several producers have introduced new products. Combining energy drinks with alcohol has resulted in new products including“Hair of the Dog”. Mixing energy drinks with smart drinks has also created new brandnames such as NOS.
Energy drinks were launched in the U.S. in 1997 with Red Bull which has the largestmarket share. By 2001, the energy drink market had developed to almost $400 million per fiscal year accounting the retail sales. The current market valuation in 2005 isapproximately $4 billion. Japan pioneered the energy drink phenomenon. The emergenceof the energy drinks market dates back to the early 1960s, with the launching of Lipovitan. In 1929, Lucozade of UK was launched.