Australia has a large market for energy drinks. Consumers in their 20s and 30s, including young people, consume them widely. From the time it emerged on the scene in the 1980s, the market has exploded. Australia’s energy drink market is worth over $800 million annually and continues to grow. That’s why Kelly’s is an energy drink distributor with a wide selection of products to suit your store’s unique needs.
When choosing the right cooled drinks for their customers, many stockists forget to consider energy drinks and perceive them as a tradeoff between energy drinks vs sports drinks. Find out how you can effectively capitalise on this sector by reading this month’s blog post!
INDUSTRY INSIGHTS AND TRENDS
The market for energy drinks has grown steadily over the last few years and shows no signs of slowing down. From 2018/19 to 2020/21, the combined category of energy, sports, and electrolyte drinks consumed by Australians has increased by 20%. That’s an average consumption increase from 15 mL to 19 mL per capita per day over those two years.
The most recent study from The Australian Bureau of Statistics also observed a significant increase in the daily consumption of energy drinks and other functional beverages in the last financial year.
- Energy drinks increased by 22% (from 9.2 to 11.2 mL per day)
- Electrolyte drinks increased by 18.5% (from 6.5 to 7.7 mL per day).
Despite being, at times, high in sugar, it’s no surprise that it’s drawing increasing consumer attention and proving to be extremely popular. Marketline forecasts that the industry’s value will only grow to be valued at $2,160.2 million. That’s a 48% increase since 2020.
WHO’S BUYING ENERGY DRINKS
When it comes to your target market, there are many more factors to consider than just if people prefer coffee vs energy drinks or vice versa. Energy drinks are popular with a wide variety of people. Still, they’re especially popular with teens and young adults, often for their convenience, efficacy and affordability. There is a tendency in research and studies to observe that energy drink consumers are more likely to be male than female, with high levels of education. However, there are exceptions to this rule.
According to Marketline’s report, consumers are increasingly worried about their health, which has led to a renewed demand for energy drinks. Additionally, consumer groups are leading increasingly hectic lifestyles, causing functional beverages to become increasingly popular. Interestingly enough, Canstar Blue found that almost one in five Aussies said they prefer energy drinks to coffee because they don’t like hot drinks but still want a caffeine hit. Students, professionals in fast-paced industries such as technology or construction, or even people who frequently work out at the gym are likely to be the most lucrative customers for energy drinks.
Gaming partners, sponsors of cultural events, and active lifestyle promoters have also supported certain brands like Bang energy on social media in recent years. As a result of the industry’s awareness of health-conscious consumers, they are planning to continue capturing this audience with low-calorie and sugar-free products like Red Bull Sugar-Free.
WHAT’S AUSTRALIA’S FAVOURITE ENERGY DRINK?
Regarding boots-on-the-ground consumer surveys, Mother Energy has remained victorious as the most popular energy drink amongst the general Aussie market, followed closely by global powerhouse Monster Energy.
Marketline’s most recent industry trend research indicates that traditional brand names are the most popular in the Australian functional drinks market. Red Bull had a value share of 26.2% in 2020. V Energy Drinks (owned by Suntory Holdings) and Coca-Cola’s Powerade are also among the top brands, with respective brand value shares of 21.9% and 16.7%.
However, if you walk into any local gym, you’re likely to find Brands like 5 Active, Bang and even Hemp Energy drinks. So like most beverage choices, it all comes down to who your target market is!
DO ENERGY DRINKS ACTUALLY WORK?
Energy drinks are a big part of busy people’s lives and those with intensive hobbies like gaming, extreme sports and gym enthusiasts. Many state and private health authorities have repeatedly encouraged less consumption of these beverages excessively. Still, people continue to drink them in large numbers.
Why? Because they actually work! In recent years the industry has stopped treating energy drinks like party mixers and recognised their similarities to other functional beverages on the market. They really aren’t that much different from consuming your regular cups of coffee and contain a tonne of vitamins and antioxidants!
In addition to caffeine and taurine, which have been shown to boost energy levels and mental alertness, energy drinks also often include vitamins B12, B6 or niacin, ginseng and guarana, which provide energy and attention levels naturally.
People are always looking for little ways to improve their moods and energy levels throughout the day. Thanks to the convenience of chilled, canned and bottled drinks, it’s never been easier.
HOW MUCH CAFFEINE IS TOO MUCH?
The average can of energy drink contains 80mg of caffeine. If you’re wondering, what the amount of caffeine is like in comparison to other beverages, like coffee vs energy drinks, it’s actually about the same amount as a standard cup of coffee or tea.
Are energy drinks safe? Yes! The survey by Canstar found that two-thirds of Australians consume one standard energy drink daily. The European Food Safety Authority released a landmark scientific report on caffeine in 2015, concluding that caffeine intake of up to 400mg daily poses no safety risks to adults.
So are energy drinks bad for you? Well, it depends. Energy drinks can contain pretty large amounts of caffeine and sugar. So it’s best to consume them in moderation. Energy drinks are required by law to indicate their caffeine content on the label, contain only ingredients approved by the Food Standards Australia New Zealand (FSANZ) and not be marketed toward children (including teenagers), pregnant or breastfeeding women, or people sensitive to caffeine.
At the end of the day, energy drinks can be a great addition to your convenience store, cafe offerings or even your gym’s vending machine. Not only do they pair well with other popular snacks and treats you’re likely to have on offer, but they’re also a great way of satisfying customer demands for more functional beverages. We hope this article has helped you to make an informed decision before stocking up on your favourite energy drinks and if you need any assistance our friendly team at Kelly’s is more than happy to find the right drinks for your business – get in touch today!