ROCKVILLE, Md. -- Over the past five years, the U.S. retail market for energy and sports drinks has expanded in vigorous fashion, culminating in sales of $25 billion in 2016 after rising at an annual rate of 7% over the preceding half-decade, according to market research firm Packaged Facts in a new report titled Energy and Sports Drinks: U.S. Market Trends and Opportunities.
Packaged Facts forecasts that energy and sports drinks will remain among the fastest-growing sectors of the beverage market.
From 2011 to 2016, notable year-over-year gains were the result of consumers seeking beverages with functional properties along with novel and healthier-seeming alternatives to carbonated soft drinks. The promise of a convenient, on-the-go caffeinated beverage also drew coffee and tea drinkers to energy drinks, according to the report.
“Many consumers perceive sports drinks as healthier than sodas and other carbonated beverages due to their association with sports and physical activity in general," said David Sprinkle, research director for Packaged Facts. "Although originally designed for athletes, these products soon garnered mainstream sales as anytime drinks, particularly among teen and young adult males. The novel flavor profile of energy and sports drinks also appealed to consumers seeking a change from sodas.”
Producers of energy and sports drinks also benefited from above-average population growth among important 25- to 34-year-olds, who are significantly more likely to consume these drinks. While the general U.S. population grew at a rate of 0.7% annually from 2012 to 2016, the number of people in this millennial demographic increased 1.4% annually, the report said.
Some other demographic observations:
- Though millennial men are arguably the face of sports and energy drinks, these products are gaining traction with other consumers as well.
- While women in general are less likely to consume sports drinks, millennial women are an exception to this rule and consume sports drinks at levels that exceed that of their male counterparts.
- Similarly, women 50 and older also exceed their male peers in consumption of energy drinks.
- Consumers with one or more children in their household are also significantly more likely to purchase energy and sports drinks for themselves. Having a single child in the home is sufficient to see this increase in reported usage, and energy-drink usage tends to increase with each additional child—a clear indication that parents are a ripe demographic for marketers in this beverage segment.
The age of children in the household influences usage rates for energy drinks but not for sports drinks, the report said. Energy-drink users are significantly more likely to have young children in their household.
These findings suggest that many initially seek out energy drinks as a tool to keep up with the demands of caring for young children. In contrast, parents may be introduced to sports drinks when purchasing them for their children, perhaps as a refreshment for sports practices and games.
Rockville, Md.-based Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.