The energy supplements category in the US was worth over US$1.2bn in retail sales in 2001, according to Mintel estimates, and furthermore annual growth rates have been above 20% for each of the last five years as the industry widens its appeal to a variety of consumers.
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Foods and beverages sold on an energy platform seem to have caught fire with consumers, propelled by a mixture of innovative guerrilla marketing, an “individuality through consumerism” youth culture, and increases in participation in physical recreation activities.
While target consumers for all three segments – powdered/liquid protein beverages, energy bars and energy drinks – are primarily young and male, and with an urban and ethnic flavor, marketing efforts are expanding to women, young and old, as well as occasional athletes, rather than just professional athletes and body builders.
Almost 20% of those who consume energy bars are doing so as a meal replacement. The proportion of women consuming these products as meal replacements is much higher (25%) than men (9%). Women were also more likely to claim convenience as a primary benefit over male consumers.
These findings support the positioning of many current products; males are interested in stamina while females are interested in weight loss or becoming leaner. Because the two sexes have such different perceived needs, new brands and positioning for women are likely to be needed to move the consumption needle for women.
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By GlobalDataConsumption of energy/stimulant beverages is very strongly correlated with age, with the most likely consumers found in the 18-24 year old age group, followed by 25-34. This again is very consistent with the current positioning and distribution of both existing and new brands. Even among the target under-25 age group, penetration has a long way to go, especially in encouraging regular users. Marketing strategies are therefore likely to
remain consistent.
Although demographic trends will favor the market for energy supplements over the period to 2010, it is clear in order to take full advantage of these trends, manufacturers will need to turn to the older and faster-growing groups. The older consumers (55+) are increasingly active, are joining health clubs, and are therefore more likely a strong potential market for energy supplements. In support, Mintel’s exclusive consumer research showed that one-third of this age group would consider purchasing an energy or cereal bar.
Energy/stimulant beverage and powdered/liquid protein drink consumers surveyed by Mintel are both relatively more likely to be black or Hispanic than white. Hispanic rates of consumption are 50-100% higher than that of whites. This finding would imply that communication targeted to black, Hispanic or urban audiences should be most efficient in further increasing energy drink consumption.
