Opportunities for growth in the energy drinks sector in 2024
The energy drinks market has experienced significant growth in recent years, driven by the increasing demand for these types of products. This trend has been particularly pronounced in the UK, with energy drinks becoming one of the fastest-growing soft drinks categories.
Read on to discover potential growth and opportunities for companies aiming to grow their share in the energy drinks category.
1. Developing New Flavours and Marketing Strategies
Through our research, we found that consumers are looking for the functional energy provided by energy drinks as a priority over health benefits. This suggests that brands and retailers should focus on creating new flavours and marketing strategies to attract consumers, rather than trying to create a ‘healthier’ or ‘clean’ version of an energy product.
By introducing innovative and unique flavours, energy drink brands can differentiate themselves from their competitors and appeal to a wider range of consumer preferences. This can help generate consumer interest, drive trial purchases, and ultimately lead to increased market share and brand loyalty.
2. Targeting Underrepresented Demographics
When running our initial research, we found that energy drinks are purchased and consumed by almost twice as many men as women (43% of men consume fortnightly, compared to 25% of women). Younger men are the primary consumer, with 18.6% of men aged 18 to 64 buyingenergy products once a week, the equivalent for women is 11.6%.
This indicates a potential opportunity for brands to target underrepresented demographics, such as older consumers and women.
This was the key theme in an article from The Grocer – How does energy drink consumption change across age and sex? using Vypr data. The article highlights that ‘the category remains very much a young man’s game’.
So, what can be done? To tap into these markets, brands can develop products that cater to the preferences of these demographics and create marketing campaigns that resonate with them. By expanding their consumer base, energy drink brands can unlock new avenues for growth and success in the UK market.
3. Focusing on Functional Energy Benefits
As mentioned earlier, the research found that consumers prioritise the functional energy provided by energy drinks over health benefits . This suggests that brands should focus on highlighting the energy-boosting benefits of their products in their marketing campaigns and product development.
By promoting the functional energy benefits of their drinks, brands can appeal to consumers seeking a quick and convenient solution to their needs whether they are playing sports or just in their day to day lives. This can help drive sales and increase brand loyalty among consumers who value the energy boost provided by these products.
4. Leverage the Power of Social Media
In today’s digital age, social media platforms play a crucial role in influencing consumer behaviour and driving interest in various products. Energy drink brands can capitalise on this trend by collaborating with social media influencers and content creators who have a strong appeal to their target audience.
A key example of this is the energy drink Prime, with YouTube stars KSI and Logan being the brand ambassadors. When we asked the Vypr community if they bought Prime for themselves, only 18% stated they did. However, when we filtered this down to 18-24 males, the percentage jumped to 64%.
By partnering with influencers who can create engaging content and promote their products, energy drink brands can boost brand awareness, drive sales, and tap into new consumer segments. This can be a powerful strategy for brands looking to expand their presence in the UK energy drinks market.
In summary, the UK energy drinks market offers significant opportunities for brands to flourish and succeed. By creating unique flavours, targeting untapped demographics, highlighting functional energy benefits, and harnessing the influence of social media, brands can unlock new avenues for growth and achieve remarkable success in this thriving industry.
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