Sports and Energy Drinks - UK -
Attitudes towards Energy Drinks
Key points
●
The main barrier to
entry for non-users is a cynicism about product claims but not concern about
value for money, how healthy they are, taste or confusion between energy and
sports drinks.
●
Consumers are doubtful
about whether or not energy drinks represent value for money. The fact that the
value of the market has grown despite the recession suggests that this is not
yet a problem, but it needs to be addressed.
●
Even amongst users,
people question whether they really work as they are claimed to. Part of the
problem seems to be that consumers buy into the concept of increased physical
energy but have only a hazy notion of the advantages of mental energy.
●
Consumers are
sceptical about how healthy they are. With people moving towards healthier
lifestyles, it is important that this is addressed.
“Which, if any, of these statements about energy drinks
do you agree with?”
FIGURE 45: Attitudes towards energy drinks – all
adults and drinkers, April 2009
|
|
All adults
|
Drinkers of energy drinks
|
|
Base: adults
aged 16+
|
1,000
|
489
|
|
|
%
|
%
|
|
|
|
|
|
They are too
expensive for what they are
|
33
|
34
|
|
They are a good
mixer with alcohol
|
18
|
33
|
|
They help me
get through a busy day
|
15
|
28
|
|
They are a good
alternative to other soft drinks
|
14
|
25
|
|
Good for
rebuilding energy levels after sport and other physical activities
|
13
|
23
|
|
They give me an
energy boost on a night out
|
11
|
21
|
|
They are a good
alternative to drinking tea/coffee
|
10
|
20
|
|
They are not
good for you
|
22
|
20
|
|
Good for extra
endurance during sport and other physical activities
|
11
|
19
|
|
I am confused
by the difference between an energy and a sports drink
|
16
|
16
|
|
I don't believe
the claims made for them
|
24
|
15
|
|
They improve
mental alertness
|
8
|
13
|
|
I don’t like
the taste
|
16
|
11
|
|
Their effect is
only psychological
|
8
|
9
|
SOURCE:
Toluna/Mintel
Barriers and non-barriers to entry
●
The
table below looks at the attitudinal difference between what all adults and
users think of energy drinks – and in this way isolates the barriers to entry
for non-users.
The main barriers
to entry for non-users (ignoring specific occasions for usage which they will
inevitably score lower on) is:
●
greater
cynicism about product claims.
Those factors
which are not a barrier to entry for
new users are:
●
value
for money
●
taste
●
health
issues
●
confusion
about the difference between energy and sports drinks.
Even users not convinced by value for money
●
As
mentioned in the Internal Market Environment section, energy drinks are priced
at a similar level to carbonates, thus offering good value for money. However,
Mintel’s research indicates that this message is not being communicated well
enough to users. A third of users think energy drinks are expensive for what
they are, and this is especially the case amongst younger consumers (see Figure
below).
FIGURE 47: Attitude towards thinking energy drinks
are expensive for what they are, by age, April 2009
Base: 1,000 adults
aged 16+
SOURCE:
Toluna/Mintel
Consumers question energy drinks’ functionality
●
Indications
of why the value message is not resonating with consumers may be due to
cynicism about the extra functionality of energy drinks, other than hydration,
compared to water or carbonates amongst users:
●
One
in seven of drinkers do not believe the claims made for energy drinks, rising
to a quarter of the general population.
●
Only
13% of drinkers (and 8% of all adults) think they improve mental alertness.
This is especially problematic considering that this is a key differentiator of
energy drinks from sports drinks.
●
That
consumers are dubious about the mental benefits of energy drinks stands in
contrast to Mintel’s findings that users of sports drinks buy into the physical
benefits (see Consumer Attitudes towards Sports Drinks). This is perhaps because
mental energy is a less tangible, less clearly defined concept amongst
consumers. Communication that can articulate a clear understanding of how
greater mental energy can help concentration and avoid a post-lunch slump has
the potential to open up the market to white-collar workers in particular.
●
New
European legislation may force sports/energy drink brands to prove
scientifically any claims that are made. However, manufacturers can be
proactive in opening an honest dialogue with customers. This could involve
monitoring and responding to blogging to understand what consumers distrust and
why, investing in and publicising independent research that tests the efficacy
of the products and providing clear pros and cons of all ingredients that go
into energy/sports drinks.
●
Brands
can recruit a panel of users and non-users; exercisers and non-exercisers and
provide them with a six-week sample and in return ask them to blog and Twitter
their experiences – warts and all. This would give cynical consumers a credible
understanding of how they do and do not work. It can also give people ideas
about different occasions of usage to those they are used to.
Navigating busy lifestyles
●
There
is a culture of working long hours in the UK and research shows it is natural
for people to have a mid-afternoon dip in alertness (see Internal Market
Environment). Our research lends credence to this approach, with almost a third
of people viewing energy drinks as an aid to get them through a busy day.
●
However,
it is predominantly younger consumers who think this, rather than over-35s. An
opportunity exists to increase penetration among older consumers by targeting
workers, something that some manufacturers have already begun to exploit, eg Lucozade Alert.
Stealing share from other drinks categories
●
There
is evidence that energy drinks are seen as an alternative to other
non-alcoholic beverages – in particular soft drinks but also coffee and tea –
again amongst the young in particular.
●
Being
a relatively immature market, energy drinks have a much shorter heritage than
carbonates and coffee or tea. This may be partly why they are so biased towards
younger people. However, as the current younger generation grow older, there is
a good chance that they will continue to use energy drinks to some extent. Like
coffee, tea and carbonates, it will become more entrenched in their behaviour
and psyche.
●
The
consumer research also shows that there is still a strong market for competing
with on-trade mixers; this despite the fact that fewer people are drinking Red Bullwith vodka. There is an
opportunity for a product with a more refined taste and more natural
ingredients to challenge Red Bull in this sector, in the style of Pepsi Raw in the carbonates market.
This would tap into the increasing concern of consumers to engage in healthier
lifestyles, as well as giving people a much-needed energy boost for an evening
in a pub or clubbing. It could also appeal more strongly to women. Mintel’s
research shows that, whilst Red Bull has a penetration of 32% amongst UK men,
this falls to just 17% for women.
Health concerns
●
Currently,
a fifth of adults and energy drinkers think that the products are not good for
you, which is likely to be a particular barrier to entry as people age, and for
women. People tend to become more concerned about their health as they get
older, and as this report argues, targeting those in middle age is key to
growing the category.
●
The
Who’s Innovating section shows that a feature of NPD has been products
marketing themselves as more natural energy boosters and containing fewer
additives. As healthier lifestyles increasingly become an issue, this is likely
to represent a valuable source of future growth.
If you want Dissertations on Consumer Attitudes towards Energy Drinks, Contact Mahasagar Publications.
