LONDON—Australia is one of the main countries to have driven global energy drink volumes up in 2008; however, escalating health concerns, growing preferences for natural ingredients and negative publicity are likely to inhibit long-term growth in the category. New avenues for growth will come in the form of energy drinks that address such concerns; it is likely that health-promoting energy drinks and organic variants will proliferate in the near future, according to a new report from food and drink consultancy Zenith International.
Global energy drink volumes have risen by 2 percent in 2008 to 3.9 billion liters; almost double the 2 billion liters sold in 2003. Average growth in the category over the past five years has been 14 percent per year, with North America the leading region (37 percent of global volume in 2008), followed by Asia Pacific (30 percent) and Western Europe (15 percent). While Asia Pacific experienced a decline in 2008, largely due to a 41-percent drop in Thailand, the Australasia region is surging, with volumes soaring 33 percent.
While sales have been boosted by increased competition and a wider range of alternatives, including energy shots and large can sizes, changing consumer attitudes are an important factor. Energy levels have evidently come to the fore among Australian consumers this year. Datamonitor's Consumer Survey in August 2008 found that 40 percent of Australians paid a high amount of attention to “having enough physical energy or stamina,” which was notably less than the global average of 50 percent.
This growing awareness of and concern surrounding one's energy levels in part explains the growth in regional consumption of energy drinks, which (together with North America) is now the highest in the world, at 4.2 liters per person. The convenience, the novel taste and trendy image of such drinks make them particularly appealing to younger consumers. The growing trend for consumers to mix such drinks with spirits to create "energy cocktails" also contributed to category growth.