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Sports and Energy Drinks in the US

United States energy drinks market: $15.9 billion industry in 2012

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2014-02-10 18:57:01 - Sports and Energy Drinks in the US - a new market research report on

The Gatorade Co continues to hold a commanding lead in the United States energy drink market through the Gatorade sports drink range, with 36% of off-trade value sales in 2012. Gatorade was the first major sports drink brand, and has maintained its lead through continuous product introductions, offering different flavours and formulations to appeal to different consumer groups. Gatorade rebranded its products from Gatorade to G in 2009, and the move initially confused some consumers, causing a decline in share. However, G2, the low-calorie version, did well. Since 2010, the brand has recovered as consumers have once again become familiar with the product and its new labelling.

Sports drinks? performance was the contributor to the slowdown in growth in sports and



energy drinks in 2012. Growth in sales of sports drinks slowed in 2012 after an acceleration in 2011, as such products faced new competition from coconut water, as well as ongoing controversy about their healthiness. Off-trade volume sales of sports drinks grew by 2% in 2012, after 16% growth in 2011. Though the recovery of the US economy should aid premium drinks such as sports drinks, it did not in 2012. Athletic consumers and parents have long viewed sports drinks as necessities to a hard workout, as they have seen professional athletes drink Gatorade during televised games. However, the tide has been turning away from sports drinks, as health professionals now view them as an unnecessary source of calories.

Sports and energy drinks face a challenging road ahead in terms of proving their safety and health to consumers, in addition to the challenge of broadening their appeal to more consumer segments. Total sales of sports and energy drinks are expected to grow by 17% in volume terms between 2012 and 2017, to reach 8.5 billion litres. The forecast for combined off-trade and on-trade volume sales for the 2012-2017 period is slightly lower than the 20% growth achieved over the 2007-2012 period. Sales of sports and energy drinks are expected to grow by 28% in off-trade value terms to reach US$20.3 billion. While energy drinks have reached a high level of penetration, constant innovation from manufacturers supported by edgy advertising should enable the companies to grow sales.

Key Headlines

- Total sports and energy drinks volume increases by 5% in 2012 to 7.2 billion litres, while off-trade value sales rise by 11% to reach US$15.9 billion
- Sports drinks grows by a slower 5% in off-trade value terms in 2012 as it faces new competition and controversy
- Energy drinks continues its success and grows by 17% in off-trade value terms and by 18% in off-trade volume terms in 2012
- The average unit price of sports and energy drinks grows by 5% in 2012
- The Gatorade Co is leader in sports and energy drinks, with its Gatorade sports drink brand
- Sports and energy drinks total volume sales are expected to grow by 17% over the forecast period, while off-trade value sales are expected to grow by 28% in constant value terms

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Mike King
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