DUBLIN, Ireland — The $1.1 billion energy drink market has experienced phenomenal growth of over 700 percent between 2000 and 2005. Teens and young adults remain the primary target and marketers have created an energy drink for every young lifestyle. Nearly half of all energy drinks sold in 2004 were purchased in convenience stores, locations known to be frequented by young people, according to a report by Research and Markets called Energy Drinks in the United States, which is now available.
Teens and young adults remain the primary target and the tremendous sales growth of this category has been driven by the right product meeting the right group, the report stated. Young people often seek a way to get the most out of their free time and added energy is a solution.
However, the category will have great difficulty keeping up the rate of growth seen in the past six years, according to the report. The market is likely to show some changes in the near future, including consolidation of some of the 1,000-plus players, both large and niche. To survive, manufacturers will need to develop strong and unique positions in the marketplace as well as hearty distribution networks.