Domestic Growth of Energy Drinks and Exercise

Americans will no doubt continue to have an affinity for drinks that provide shots of energy that serve as substitutes for more coffee, tea, and other traditional energy boosters

Energy drinksCoffee and tea were formerly the providers of artificial stimuli to American workers for well over a century. They gave countless Americans a boost to make it through monotonous work weeks and even assisted those who wanted to have longer lasting sessions at the gym. The last decade has seen these traditional methods slowly give way to new and improved methods of artificial stimulation. The upward trend of growth in the energy drink market domestically has been an intriguing occurrence over the last decade; these offerings when from a novelty in the early 1990s to household items by the mid 2000s. The side effects of these stimulants have been well publicized, with studies attempting to offer definitive proof that the nervous system is adversely affected by intake of energy drinks. Energy drinks have spiked in popularity in spite of reluctance on the part of health professionals to their usage.

The market for energy beverages had the groundwork laid got by Jolt Cola, which began to gain popularity in the mid to late 1980s; as a result the concept of energy drinks was given a foot hold that would soon expand rapidly. However, the proliferation of energy drinks in the     U. S. perhaps owes a large debt to Red Bull’s entry into the American market in the late 1990s. It was started in the 1980s by Austrian Dietrich Mateschiz as a different version of Thai energy boosting beverage Krating Daeng, and it has revolutionized the way Americans take in caffeine after being introduced domestically in 1997. The early days of the beverage’s venture into the American market relied heavily on nontraditional advertising, taking unconventional angles to appeal to a younger audience just starting to experiment with energy drinks. The drink provides users with an energy boost thanks to 27 grams of sugar packed into every 8.3 ounce can. Red Bull has seen steady increases in its domestic sales, but has slowly seen competition become stiffer in the industry. Competing energy drinks Rock star and Monster have become much larger objects in Red Bull’s rear view mirror as they gained name recognition and slowly peeled away market share.

According to Nielson Co. reports, energy drinks now account for over 18% of total sales in convenience stores. Guarana is included in almost all energy drinks as an artificial stimulant, and the amino acid taurine is a common ingredient as well. Vitamin B and ginseng are commonly found in the various offerings. After initially boasting only a few brand names such as Lipovitan D in Japan and the previously mentioned Jolt Cola in the United States, the market became saturated with labels claiming the title of “energy drinks” during the initial decade of the 2000s. A few brands have emerged as industry leaders, but numerous others such as Red Rooster, King 888, and Blue Charge failed to gain significant traction in an increasingly competitive market.

One such label that seems to have found a niche is Rock star energy drink. The product’s inception occurred in 2001 and helped to popularize the concept of the 16 oz. can. It currently accounts for a 14% share of the American energy drink market. Rock Star contains 62 grams of sugar in each can, providing its users with a stimulant to avoid barely making it through the daily grind.

Monster Energy drink burst on the scene in 2002 as the brainchild of Hansen Natural Company of Corona, California. Like Rock Star, the drink is delivered in a 16 ounce can stating that it allows those who drink it to “Unleash the Beast”; apparently Hansen Natural felt the need to have a short and sweet slogan to counter Red Bull’s claim that it “Gives you Wings.”  Monster Energy contains slightly less sugar than Rock Star and Red Bull energy drinks, reporting 52 grams of sugar in every 16 oz can.

By 2006 energy drink sales had ballooned to $3 billion annually, skyrocketing from sales of less than $10 million only five year prior. Strong growth is continuing, although the straight shot upward has not continued at as brisk a pace over the last several years. Americans will no doubt continue to have an affinity for drinks that provide shots of energy that serve as substitutes for more coffee, tea, and other traditional energy boosters

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