Energy, sports performance - Part 2
Trends
Growing demand for energy, sports foods and drinks.
Markets in Motion
BY LU ANN WILLIAMS
Photo courtesy of: Getty Images / FilippoBacci
Energy for exercise
Consumers tell Innova Market Insights that exercise is a catalyst for using energy drinks, as well as products positioned for hydration. Energy drinks and sports drinks split the performance drink marketplace fairly evenly. Energy drinks are highly popular in the US, growing at a compound annual growth rate of 20% and exceeding the growth rate of sports drinks. They are projected to grow on pace with other regions. Interestingly, packaging differs—with energy drinks are predominantly served in cans and sports drinks mostly in bottles.
Looking around the world, the US and UK markets lead global per capita consumption of energy drinks. North America and Asia combined account for 75% of energy drinks sales but Latin America is growing faster than North America in energy drink sales volume.
New Approach to Energy. Officials say describe new HappyPop! as a sparkling beverage with “functional and adaptogenic ingredients that improve energy and a happier mood.” Ingredients include Adaptogen Mcununa pruriens (dopabean); 100mg of organic green coffee bean to boost energy and focus; real fruit juice, apple cider vinegar and 100% RDA vitamins C and D3. Credit: HAPPYPOP Store
Clean and natural energy ingredients
Overall, US consumers are drawn to those foods and beverage perceived as natural and that have clean labels. This applies to energy products as well. When Innova asked US consumers which claims most influenced their energy drink purchase decision, approximately one in six named claims for real and natural ingredients. When seeking energy, US consumers also are interested in products formulated using natural, or clean, caffeine from coffee beans, green coffee, green tea, or white tea.
Some energy drinks with clean ingredients also offer physical and mental health benefits. For example, Kill Cliff LLC, Atlanta, describes its product benefits as hydration, sustainable energy (from green tea), as well as focus (from nootropics).
Energy drinks often include caffeine as the primary ingredient supporting energy. While Innova continues to track the presence of caffeine in energy drinks—and about half of US consumers surveyed tell us they are interested in caffeine in energy drinks—we also see increased demand for natural and "jitter-free" options, including “clean caffeine.”
Form and Function: Whey and collagen protein snacks in different forms for on-the-go lifestyles. Credit: Built Brands LLC
We’ve monitored a rise in energy drink launches with clean caffeine during the past three years. Clean caffeine describes caffeine extracted naturally without using harsh chemicals. It is promoted for sustaining energy without dramatic up-and-down swings. Green tea is the most common ingredient while green coffee beans and tea extracts also are additional sources. Some products combine clean caffeine sources with other compounds associated with energy, such as yerba mate. Manufacturers of clean caffeine energy drinks often promote social commitments and better-for-you choices in sweeteners in addition to natural caffeine sources.
US drives sports nutrition
The sports nutrition category includes four subcategories: sports powders, ready-to-drink sports drinks, sports bars, and other sports nutrition formats. Nearly one-third of consumers globally, led by those in Vietnam, South Africa, Indonesia and the US, use sports nutrition products. Consumers cite sustaining or boosting energy as the most desired feature of sports nutrition products, followed by immune health, hydration, and gut health. Hydration is a top desired benefit in Japan, Mexico, and the US.
Sports powders lead the sports nutrition subcategory. North America is among the top regions with launches of sports nutrition powders. These products include and feature protein, functional and nutraceutical ingredients, botanicals, and vitamins and minerals. Caffeine and the amino acid l-tyrosine are the most prevalent and fastest-growing functional and nutraceutical ingredients in North American sports nutrition launches.
Hydration products and claims are growing. Ross MacKay built Daring Foods in the plant-based category and has branched into beverages. New Cadence incorporates three electrolytes, in the compound forms of salt (sodium chloride), magnesium lactate, and potassium chloride. McKay co-founded Cadence with George Heaton (pictured far right), the creative director, co-owner, and co-founder of Represent, a British luxury fashion brand. Credit: Cadence
The sports powders subcategory includes sports and protein powders that need to be mixed with water, milk or juice. Consumers typically use these products before and after exercising or in place of a meal. As with sports nutrition products in general, North America is among the top regions for sports powders launches and the US leads other countries in launches of sports powders.
Popular claims include energy and alertness (an overlap with energy products) as well as gluten-free, protein, fat reduction, and brain health. Milk chocolate is the top flavor while passion fruit, lemon-lime and red raspberry are growing in popularity. Vegetable and botanical flavors and ingredients are emerging, especially in the US. Astragalus, beetroot, and green tea show the most growth among botanical ingredients.
Category Crossover: PepsiCo’s Gatorade introduces its first energy drink “to fuel athletes’ pre-game routines and workouts.” Developed in consultation with the NFL and sports performance experts, Fast Twitch contains 200mg of caffeine, 100% DV of vitamins B6 and B12, and electrolytes including 160mg sodium and 50mg of potassium. Credit: PepsiCo
After a pandemic-related slump, ready-to-drink sports beverages have recovered and posted solid sales growth in 2022 and 2023. Nearly half of sports nutrition drink sales are in the US, the largest market globally. North America and Asia combined account for more than two-thirds of sports drink value and nearly three-quarters of sports drink volume. Per capita consumption of sports drinks is highest in the US, followed by Japan.
Among sports drink subcategories, Innova is tracking a prolonged decline in US launches of protein-based RTD beverages and strength in ready-to-drink sports drinks. We also see innovation around products for rapid hydration that also are convenient to use, including more portable fitness water options in powders and tablets.
Sports snacks and bars are led by launches of sports bars. North America is the third top region, and sports bars are less widely used than sports powders. Growing claims include digestive and gut health, natural, and no additives or preservatives. Clean and natural features mirror those of energy drinks. Sports bar flavors lean toward chocolate and nuts, although cherry also is popular. Among claims, high in protein or source of protein are dominant, fiber claims are widespread, gluten-free is popular, and GMO-free is stable.
The growing overlap between energy and sports
As mentioned, we see overlap between sports drinks and energy drinks when it comes to product features and benefits. Nutraceutical/functional and vitamin/mineral ingredients are growing across both energy drinks and sports drinks, blurring the lines between these two subcategories.
Innova is tracking innovations by manufacturers in the energy and sports space that offer hybrid combinations of benefits for sports, fitness, and energy drink. PepsiCo, for example, recently introduced a hybrid caffeinated energy and sports drink, Fast Twitch, under its Gatorade banner. The product highlights its desirable combination of caffeine, vitamins, electrolytes, zero sugar, and absence of artificial flavors and colors. We expect additional growth in reformulations that add energy, sports performance, and other benefits to older product lines as a way to retain current consumers and attract new ones. PF
Lu Ann Williams is Global Insights Director at Innova Market Insights, provider of market research services including the Innova Database. With more than 25 years’ experience in the food industry, Lu Ann is a trend expert and frequent public speaker at events worldwide. She leads a team of analysts and works with global clients. Contact her at luann.williams@innovami.com
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