Abstract
Summary
The European energy drink market is projected to register a CAGR of 3.8% during the forecast period (2022-2027).
With a change in consumption habits due to the onset of the COVID pandemic, consumers are now ready to experiment with new products, exceptionally healthy and safer ones, which has prompted companies to look at interesting and affordable products. Keeping this in view and the growth in demand during the pandemic, energy drink manufacturers in the region have started diversifying their product portfolio with new ranges that include reduced sugar, plant-based, clean-label ingredients, and functional benefits.
Over the medium term, the energy drink market is one of the fastest-growing beverage markets in Europe, as consumers in the market are looking for healthier beverage options. The larger inclination of the younger population toward the consumption of energy drinks and the improving living standards of the people in the region are some factors driving the energy drinks market.
Moreover, growth in the number of health-conscious consumers, increasing consumer awareness regarding active lifestyles, and growing rates of lifestyle-related diseases inspired health-oriented consumers to opt for healthy and sugar-free drinks. The energy drinks market is also projected to grow due to increased promotional and advertisement strategies. Additionally, many major manufacturers of energy drinks are spending high capital on advertising, thus, making their brands and products more popular.
Key Market Trends
The United Kingdom Dominates the Market
An increase in the consumption of energy drinks in the region can be attributed to the growing consumer demand for energy-enhancing products and the changing lifestyles and improving living standards of consumers. Initiatives taken by the leading players in the market studied to improve their distribution infrastructure, the popularity of their energy drinks, and harness the increased consumer spending potential on food and beverages are projected to promulgate the demand for energy drinks during the forecast period. Due to the rising concern of diabetes and obesity, consumers have started to prefer sugar-free beverages with high nutritional value and taste. According to the British Soft Drinks Association, in 2020, the market share of low/no calorie beverages was around 68.6% for all soft drinks, including energy drinks. The players operating in the market studied have been focusing on expanding their product portfolios to cater to the changing demands of consumers.
Growing Influence of Endorsements and Social Media Marketing
Product offerings, technologies, marketing expenditures (including expenditures for advertising and endorsements), pricing, production costs, customer service, digital commerce platforms, digital services and experiences, and social media presence are areas of intense competition as far as the European energy drinks market is concerned. With the growing importance of social media in a shopper's purchase journey, the companies are evolving and stepping up their advertising, marketing, and endorsement game across different channels of distribution, including supermarkets/hypermarkets, specialty stores, and online retail stores, among others, using television, radio, social media, magazines, and other print media as a medium for garnering consumer attention. Furthermore, these companies have been collaborating with sports clubs and tournaments and strengthening their presence on social media platforms, like Twitter, Facebook, and Instagram, among others, to garner consumer attention, promote their portfolio of offerings, and increase the visibility of their brand. For instance, as a part of their promotional strategy, the key players, like Red Bull, own football teams, with clubs in Austria, Germany, the United States, and Brazil featuring the Red Bull trademark in their names. The company seeks to promote public image and raise brand power by associating the drink's image with these activities.
Competitive Landscape
The European energy drinks market is a highly competitive market with the presence of various small and large regional and global players. Major players involved in the production and distribution of energy drinks in the region are making strategic innovations to attract consumers with new flavor formulations. They also focused on product innovations with vitamin-loaded drinks, gaining immense interest among consumers. Major players in the market are Red Bull, Monster, Lucozade, PepsiCo, and Dr. Pepper Snapple.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Packaging Type
5.1.1 Bottles
5.1.2 Cans
5.2 Distribution Channel
5.2.1 Supermarkets/Hypermarkets
5.2.2 Specialist Stores
5.2.3 Convenience Stores
5.2.4 Online Retail Stores
5.2.5 Other Distribution Channels
5.3 Geography
5.3.1 United Kingdom
5.3.2 Germany
5.3.3 France
5.3.4 Spain
5.3.5 Italy
5.3.6 Russia
5.3.7 Rest of Europe
6 COMPETITIVE LANDSCAPE
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Red Bull GmbH
6.4.2 Monster Beverage Corporation
6.4.3 Emerge
6.4.4 PepsiCo Inc
6.4.5 Britvic PLC
6.4.6 AtomicDrinks bv
6.4.7 S. Spitz GmbH (Power House)
6.4.8 Suntory Group
6.4.9 The Coco-Cola Company
6.4.10 Bullit
6.4.11 National Beverage Corp
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
8 IMPACT OF COVID-19 ON THE MARKET