The Growth of Energy Drinks Are Moving the Market

Energy-Drinks

July 5, 2013

Dr. Tyra OldhamLANDsds Sustainable Voice News

The vitality and productivity that many seek each day is relevant to the times of social responsiveness, highly connectivity and the willingness to multitask.  The complex data overload includes, navigating the grid of resources, networks, infrastructure, time, data and relationships that demands stamina.  The knowledge that the “U.S. energy drinks tout organic ingredients” assists in consumer branding to consider health while obtaining energy.

CBC News reported the state of “Energy drink sales hit $12.6 billion U.S. last year, representing a 14 per cent jump from 2008, according to market research firm Packaged Facts. While Red Bull, Monster and Rockstar still dominate the U.S. market, part of the recent growth comes from new kinds of products, including diet and natural energy drinks. Even the big players are getting into the act. Campbell Soup Co.’s venerable V8 line of drinks now includes a canned V-Fusion + Energy drink made with juice and green tea. And Starbucks sells fruit-flavoured Refreshers made with unroasted coffee beans.”

The aspect of demand is interesting. Is trending creating a energy drink bubble that will soon burst or this phenomenon the natural progression of a growing need for increased productivity. The energy revolution integrated with health and productivity is driving a new industry.

The Bureau of Labor Statistics reported in June of this year that,

“Nonfarm business sector labor productivity increased at a 0.5 percent annual rate during the first quarter of 2013, the U.S. Bureau of Labor Statistics reported today. The increase in productivity reflects increases of 2.1 percent in output and 1.6 percent in hours worked. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the first quarter of 2012 to the first quarter of 2013, productivity increased 0.9 percent as output and hours worked increased 2.4 percent and 1.5 percent, respectively.”

The research reveals that income levels have declined by 3.8% in light of increased productivity. These numbers could correspond to the need for more energy.

John Lennon, president of Xyience, which makes Xenergy energy drinks said, “Because retailers are devoting more shelf space to energy drinks, there’s always a battle among the competitors within the sector. So what you’re seeing within the energy drink category is an innovation in products.”

John Sicher, publisher of Beverage Digest offered, “I think we’re going to see more beverages that offer energy functionality, but in non-traditional energy drinks.”

As the demand for increased work and production, as well as stores managing the bubble on display of creative drinks is driving sales and possibly could be blurring the lines between energy need and the allure of brand drinks for niche’ consumers.

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