Success of Energy Drinks Take Zest From Juices & Dilutes the Squash Category

energy-drinksKey Note’s 2014 Market Update, Fruit Juices, Energy & Juice Drinks, analyses the UK market for juice drinks, energy drinks and fruit juices.

All three subsectors are extremely popular, with vast product ranges catering to almost every taste and budget. Energy drinks are particularly resilient, displaying outstanding growth in recent years despite a challenging economic context and mounting concerns regarding the health implications of regular consumption. The category has edged market share from its rivals in the juices and juice drinks categories, finishing 2013 with command of over 30% of the market.

The report examines value and volume growth in all three sectors, using calculations based on data from the British Soft Drinks Association (BSDA); forecasts figures; analyses recent corporate activity; and discusses important market trends and issues. These include health concerns about the sugar content of smoothies and fruit juices, the impact of the economic crisis and recent new product development (NPD).

Health is probably the most significant driver of NPD, with a focus on low sugar, organic ingredients, removal of additives and the use of natural products and production methods becoming more and more important to many shoppers.

Juice drinks and smoothies have long been hailed as a healthier choice, but as awareness grows about their high sugar content, these categories may find themselves struggling to appeal to the health conscious. Market saturation is also becoming a problem, and the rise of lower cost own-brand products is undermining sector value by restricting sales of branded options.

Despite this, Key Note forecasts growth for all three sectors between 2014 and 2018, with energy drinks continuing to defy health scares to edge yet more market share from its competitors.

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