Energy Drinks

Topics: Energy drink, Caffeine, Guarana Pages: 4 (862 words) Published: August 5, 2010
Table of Contents

1 Background
2 Market Structure
3 Industry Definitions
4 Market Metrics
5 Industry Players
6 Trends and Recent Developments
7 Sources
8 Related ResearchWikis
Energy drinks are non-alcoholic beverages which are intended to provide a quick burst of high energy to the consumer. These may be prepared with a composition of methylxanthines, caffeine, natural flavors, some herbal components or specific vitamins including Vitamins B. They may also contain taurine, guarana, maltodextrin, ginseng, carnitine, inositol, glucuronolactone, creatine and ginkgobiloba. Most products include artificial sugar. The primary active component is generally caffeine.

Japan and Thailand have a longer history of energy drinks and the use of caffeine has been a key ingredient in those countries. Energy drinks acting as an alternative to coffee were first introduced in Europe. The market received a significant boost when Red Bull entered the US market in 1997. After this successful market introduction, various beverage companies including Coca-Cola and Pepsi entered the market. Austria-based Red Bull remains the market leader though with an approximate market share of 65%. According to Beverage Marketing, the growth rate of this industry had been doubling every since the late 90s. The current U.S. domestic market may be approximately $4 billion, expected to grow to an estimated US $10 billion by 2010.

Recent years have witnessed the emergence of several new energy drinks. They include KMX of Coca-Cola, 180 of Anheuser-Busch, Hansen's Energy, and Adrenaline Rush of PepsiCo's SoBe. Pepsi had earlier introduced AMP under the Mountain Dew brand and also Extreme Energy by Arizona Beverage Company was launched. Growth of the current worldwide market for energy drinks is estimated at 17.8%. Major producers are focusing heavily on marketing, targeting the promotion of energizing conception, result-oriented marketing and product...
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