BevWire recently came across a news briefing article on BevNet saying that Hiball is launching a sparkling energy juice (article available here). The article also claims that Hiball is a pioneer for clear sparkling energy waters. While BevWire doesn’t doubt that Hiball is a pioneer in that field, there doesn’t seem to be any other companies competing with this niche. This just serves as a clear signal that the energy drinks market is maturing.
Energy drinks have quietly entered into Canada in the last 5 years, and already a great variety of products surround the category. From regular energy drinks (ie. Red Bull) to niche drinks such as natural health drinks, anti-energy drinks, and even to energy shots, pills and gum. Product placements and event sponsorships definitely helped the public recognize these products and propel them into mainstream media.
So what stays and what goes? Once a product hits the maturity level, only a few key players remain in the market. Others that entered hoping to make some quick profit now exit realizing that there is too much competition and the category is no longer profitable for them. Goodbye copycat and private label energy drinks, energy gum and a host of energy shots. BevWire’s guess is the main three energy beverages will stay (Red Bull, Monster, and Rockstar), while niche energy drinks may stick around to compete for the remaining market share. The energy shots market will see Living Essentials (5-Hour Energy) as the dominant market leader, while other brands vie for the remaining dollars. Consumers having been exposed to so many choices have already picked the brands they choose to purchase, and will likely show loyalty to these brands. That’s why only a few brands will be successful.
So now that energy drinks has matured, what will become the new beverage trend?