Energy Drinks Industry Report Now Available from IBISWorld

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With incredible growth rates off a low base in the early 2000s, the Energy Drink industry has slowed down its pace over the five years to 2011. Yet the industry continues to achieve double-digit growth, according to IBISWorld, the nation’s largest publisher of industry research. As the energy drink market gradually becomes saturated it will grow only slightly in the next five years. The popularity of the energy drink industry has attracted business investment and encouraged innovation and new product introductions. For this reason, industry research firm IBISWorld has added a report on the Energy Drink Industry to its growing Wellness Nutrition & Supplements report collection.

IBISWorld Market Research

IBISWorld Market Research

The Energy Drink Industry is attracting businesses and driving industry expansion

With incredible growth rates off a low base in the early 2000s, the Energy Drink industry has slowed down its pace over the five years to 2011. Yet the industry continues to achieve double-digit growth, according to IBISWorld, the nation’s largest publisher of industry research. As the energy drink market gradually becomes saturated it will grow only slightly in the next five years. The popularity of the energy drink industry has attracted business investment and encouraged innovation and new product introductions. For this reason, industry research firm IBISWorld has added a report on the Energy Drink Industry to its growing Wellness Nutrition & Supplements report collection.

According to IBISWorld research, The Energy Drink Industry is attracting businesses and driving industry expansion. Over the past five years, rapid growth in the energy drinks industry stirred up interest in beverage companies, leading to an influx of producers. During the five years to 2011, a quick rise in the popularity of energy drinks such as Rockstar and Monster initially propelled growth. Major players in the industry include Hansen Natural, which owns Monster Energy which is distributed nationwide, Red Bull, Rockstar Energy Drink and The Coca-Cola Company which produces Smartwater, which is considered a functional drink because it is enhanced with electrolytes.

According to IBISWorld analyst, Agata Kaczanowska, the success of the Energy Drink Industry has stimulated product innovation since 2006. “With investment by beverage behemoths like Coca-Cola and PepsiCo, hybrid drinks such as sport energy drinks have surfaced on the market in large numbers, drawing consumer interest,” says Kaczanowska .The major players have become heavily involved in the production of industry products.

As energy drinks achieve market saturation, regulators are cracking down on the marketing of these and other products, according to IBISWorld. In the aftermath of several products like Four Loco and other energy beers being abruptly pulled off of shelves in several states, industry players will be more wary of potential bans or new regulations. According to IBISWorld, this will be especially true when companies deal with non-traditional content combinations like these caffeinated alcoholic drinks, which were banned in 2010. Likewise, new products like energy pills and relaxation drinks, which promote a calmer method for people to focus at work, are increasing competition for the energy drink industry. As companies reclassify products, demand will shift to other industries. Similarly, marketing will be increasingly tricky as health concerns spill into public debate over the five years to 2016.

For more information, download the full report from IBISWorld on the Energy Drink Industry

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IBISWorld Industry Market Research Reports Contain:

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets
Supply Chain
Products & Services
Major Markets

Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry

Major Companies

Operating Conditions
Capital Intensity

Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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James Karklins
IBISWorld
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