Competition Energy Drinks

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Competition in Energy Drinks,
Sports Drinks, and
Vitamin-Enhanced Beverages
Tami Bouldin-Golt

The beverage industry, like most food service industries in these economic times, faces many challenges. Not one company is excluded from the challenges of economic conditions, demographics, social and global forces, and regulatory, political, and legal factors.

The global economic conditions affect the energy drink industry in many ways. This industry depends highly on the disposable income of its customers. People are very cautious with their money these days and if additional income does not exist to purchase these items, then the companies suffer. In recent projections, however, this does not seem to be the case. The global industry factors show a projected growth of $20 trillion in sales between 2009 and 2014, and demand for these alternative beverages is expected to increase globally as customer purchasing power increases.

Social factors play an important part in the industry’s strategy, as well. With customers concerned with healthy lifestyles and exercise, the alternative beverage industry has increased sales in the last decade. Customers demanding low calorie, energy & vitamin-enhancing drinks turn to these types of beverages for their needs instead of carbonated soft drinks. Alternative drinks are consumed by a slim demographic. These products are generally used by young adults, college and high school students, athletes and exercise aficionados. Another branch of these drinks are the energy “shots,” which have become very popular in the last decade.

With new legislation and changing regulations, it is very important for companies to stay abreast of all changes. There has been an increase in negative reports on what affects energy drinks have on people that use them, from high blood pressure to arrhythmia, which as forced some companies to include warning labels on their packaging. There is...
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