News | April 19, 2017

Energy Drinks Market Prioritizing Increased Safety, Natural Ingredients, Says Infiniti Research

LONDON--()--Though Infiniti Research predicts that the global energy drinks market is expected to grow at a CAGR of 11% by 2019, the type of products that the market offers will change radically in response to health concerns regarding the ingredients and side effects of traditional energy drinks. As more bans and regulations regarding the sales of caffeinated energy drinks are implemented, the market will see an influx of energy drinks with natural ingredients and the removal of potentially harmful additives including alcohol.

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Market Developments

City councillors in Toronto, Canada recently voted to ask city agencies to consider not selling popular caffeinated energy drinks to customers under the age of 18, and to support compliance with Health Canada’s rules regarding the marketing and distribution of sports drinks. Originally the council was approached with a proposal to ban the sales of these energy drinks in city-owned properties or facilities, including stadiums and recreations centres, but the council’s decision was to ultimately put more of a focus on raising awareness about the potential health risks of these drinks, encouraging customers to make healthier purchasing decisions, and teaching the public about the dangers that come with mixing alcohol and energy drinks.

The Center for Disease Control and Prevention reports that people who consume alcohol mixed with caffeinated energy drinks are three times more likely to binge-drink. They are also more likely to become injured while using these drinks. The combination of alcohol (a “downer”) and caffeine (an “upper”) makes it difficult for the drinker to gauge how much alcohol is in their system.

Some popular energy drinks have been banned in parts of the United States and other countries due to a combination of ingredients that were seen as harmful to the consumer. These concerns and publicized issues are causing brands to re-consider their branding, ingredients, and manufacturing methods. Other manufacturers are removing alcohol from their products entirely. Manufacturers of energy drinks that do not contain alcohol are also working to make their products safer for consumers, substituting traditional forms of caffeine with ingredients like raw Brazilian coffee seed and organic ginseng.

Market Opportunities

Manufacturers must have a clear and comprehensive picture of the market landscape in order to keep their customers satisfied and safe. Infiniti Research’s market intelligence services help organizations identify potentially dangerous ingredients, keep up with changing regulations and bans, and stay informed about what consumers want from energy drinks and other beverages.

Infiniti Research helps companies, including those in the food and beverage industry by providing real-time insights into evolving consumer preferences, price trends, government regulations, and upcoming competitors that help devise effective growth strategies. Infiniti’s latest project helped a leading multinational alcoholic beverages company conduct a customer survey based research study to assess brand awareness, perception, and brand sentiment.

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About Infiniti Research

Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies.

With 13 years of experience and offices across three continents, Infiniti Research has been instrumental in providing a complete range of competitive intelligence, strategy, and research services for over 550 companies across the globe.