The energy drinks: a market for the future?
Mémoire publié en 2002 - 36 pages
The on-the-go consumption may be defined as out-of-home consumption in non-conventional locations. Beyond the home, consumers' actions can be classified into three occasions when consumption may take place: on the move consumption - whilst commuting or travelling; workplace consumption - when engaged in work activity; leisure consumption - in cafés, coffeebars etc or during or after recreation, sport or other pastimes.
The energy drinks : Marketed as energy-enhancing products, mainly carbonated and typically containing taurine, glucose and other exotic herbs and substances as well as added minerals and vitamins.
The on-the-go market -especially the energy drinks market- knew a particularly robust growth in the past five years, and doesn't show any weakness sign for the future years. The demand for on-the-go products has been provoked by socio-cultural, employment structure and economic changes. The result is a more just in time culture, and that offers lucrative opportunities for manufacturers. New innovations continue to hit the market. At the same time, on-the-go products are becoming available in more diverse locations.
Whatever, lots of differences exist among the countries. The maturity of the markets are not the same (northern countries are much more mature than southern ones for this type of products), and the consumer needs are very different. The stake will be to discern the on-the-go opportunities to be innovative, and to find the good way between global and local strategy.
The sports and energy drinks market is a young market, especially in Europe, but knows a so big growth that no beverages companies can ignore the segment. It is the biggest growth in volume, but more important, it is the biggest growth in value and the biggest margins realised in the beverages sector.
We can say that the energy drinks represent a very big market opportunity, and may continue to grow up very quickly. The only risk could be provided by the medical problems due to certain beverages, but that is a question of product formulation.
Also, as this is a lucrative segment, many companies may launch their own product in the future years if it is not already done. So we can guess that this market will be segmented a lot.
Lastly, all the energy drinks will not be based on the Red Bull model, but will answer to several energy needs. So we can conclude that the energy drinks market is a market for the future, as if it is a functional drink, so not consumed in every occasion, it means that the product sales could be limited to medium volumes.
Toulouse Business School