Energy Drink Sales Up, But Have Difficult Time Attracting New Users

A recent report by Mintel shows the market for energy drinks/shots has grown stagnant.  While the sales of energy drinks have gone up 136% during 2005-2009, the report found that energy drink manufacturers were having difficulties finding new customers.   

Mintel found that the biggest reason energy drink/shot manufacturers are finding it difficult to grow their customer base is simply because people are not interested in consuming the drinks.  The report found that 74% of Americans over the age of 18 do not consume any type of energy drink.  Additionally, 69% of the people who do not use them, have no interest in trying them.

Although sales of energy drinks/shots have continued to rise over the past five years, manufactures are selling to the same 15% of Americans over 18 today that they were years ago.  Consumers gave numerous reasons why they do not consume energy drinks.  Among the most common reasons were the high prices (48%), high levels of caffeine (43%), and many people simply feel that energy drinks/shots are not good for you (43%).

Between 2005-2007, the energy drink market added an additional 9.3 million users to the customer base.  The period between 2007-2009 saw the industry attract only 1 million new users.  Mintel said that the with so many people not even willing to try energy drinks and shots, the manufacturers must broaden their target market in order to stay viable into the future.  It suggests that manufacturers create a wider range of flavors, use less sugar and caffeine, and use more all-natural ingredients.  Mintel believes that by implementing changes that will make the drinks healthier and less sugary, the industry could see the same type of growth it did between 2005-2007.

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