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Energy Drinks, High Price Positioning Limits Potential Uptake amongst Less Affluent Consumers
Energy drinks are amongst the most expensive of soft drinks and are potentially one of the first amongst soft drinks to be culled when times are hard.
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Energy drinks represent the smallest of soft drinks categories, smaller even than iced/rtd coffee drinks, but although energy drinks expansion has slowed since the original global explosion a few years back, it has yet to stop. Per capita consumption is low. In 2010 it stood at just under one litre per head, but this is almost twice the level achieved just five years ago, yet the category still accounts for 1% of the total soft drinks market.
Energy drinks are amongst the most expensive of soft drinks and are potentially one of the first amongst soft drinks to be culled when times are hard. Yet, despite the price issue they have almost become a staple beverage to certain elements of the population (e.g. urban youth).
As energy drinks tend to carry a relatively high per liter price they attract a lot of attention from fringe suppliers eager to share in the profit pool. Brand proliferation is consequentially high but few products achieve any lasting consequence.
Although the years of explosive category growth may now be behind us, energy drinks are still showing steady progress and this is expected to continue throughout the forecast period (2011-2016) with increasing per capita consumption predicted in all regions.
However, energy drinks face some limiting issues. The categorys high price positioning of energy drinks limits their potential uptake amongst less affluent consumers. In some countries, negative publicity (e.g. in respect of side effects) and health concerns have already led to energy drinks being banned or their ingredients restricted, such as a limit on the amount of caffeine allowed per sales unit.
Find more Soft Drinks Market Research: http://www.giiresearch.com/
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