A report from food and drink consultancy Zenith International has found that Australia is one of the main countries to have driven global energy drink volumes up in 2008. Category developments and changing consumer approaches to managing their energy levels have been important to this growth, but further innovation is vital if the category is to prove its staying power.
Global energy drink volumes have risen by 2% in 2008 to 3.9 billion liters; almost double the 2.0 billion liters sold in 2003. Average growth in the category over the past five years has been 14% per year, with North America the leading region (37% of global volume in 2008), followed by Asia Pacific (30%) and Western Europe (15%). While Asia Pacific experienced a decline in 2008, largely due to a 41% drop in Thailand, the Australasia region is surging, with volumes soaring 33%.
While sales have been boosted by increased competition and a wider range of alternatives, including energy shots and large can sizes, changing consumer attitudes are an important factor. Energy levels (or lack thereof) have evidently come to the fore among Australian consumers this year. For example, Datamonitor's Consumer Survey in August 2008 found that 40% of Australians paid a high amount of attention to 'having enough physical energy or stamina', which was notably less than the global average of 50%.
However, perhaps owing to this lack of attention, combined with the strain of the economic downturn, increased stress at work and general fatigue, this issue of energy now resonates significantly more for Australians. The subsequent wave of Datamonitor research conducted in April 2009 found that, while just over one-quarter of consumers globally stated they were dissatisfied with their daily energy levels, a significantly higher 37% of Australians shared this sentiment.
This growing awareness of and concern surrounding one's energy levels in part explains the growth in regional consumption of energy drinks, which (together with North America) is now the highest in the world, at 4.2 liters per person. The convenience, the novel taste and trendy image of such drinks make them particularly appealing to younger consumers. The growing trend for consumers to mix such drinks with spirits to create "energy cocktails" has also contributed to category growth.
While the energy drink market is currently experiencing robust growth in the Australian market, its appeal may be fleeting. Escalating health concerns, growing preferences for natural ingredients and negative publicity that such products draw are likely to inhibit long-term growth in the category. New avenues for growth will come in the form of energy drinks that address such concerns; it is likely that health-promoting energy drinks and organic variants will proliferate in the near future.