Food & Beverage

August, 08, 2003 - 11:59 AM / ET

Mintel's Research Reveals That Energy Drinks Appeal to Minorities

CHICAGO--(HISPANIC PR WIRE - BUSINESS WIRE)--Aug. 8, 2003--According to Mintel's exclusive consumer research, energy drinks appeal more to Hispanic and black consumers than whites. The Hispanic population is growing and provides an attractive target marketing group, as Hispanic respondents are much more likely than whites (22% vs. 9%) to participate in the energy drinks category. SoBe's new Fuerte drink, distributed in parts of Texas, San Diego and south Florida is clearly aimed at Hispanics, as are several other niche products, such as Mott's Clamato Energia drink.

Similar opportunities may exist among young black adults who, according to Mintel's research, are almost twice as likely as whites to say they consume energy drinks. Black teens are just slightly less likely than white or Hispanic teens to say they drink energy drinks, though this may have something to do with the price and teens' levels of disposable income.

The energy drinks market has grown rapidly since its inception in 1997, increasing 465% from 1998 to 2003. With estimated sales of $890 million in 2003 and increases of at least 20% each year, the market will continue to grow, but at a much slower rate as the market matures.

At the same time, energy drinks will remain a niche category and will command a small portion of the overall $460 billion beverage category. A number of companies, both large and small are vying for a share of this market, with the largest spikes in growth registered in 2001 when Coca-Cola (KMX), PepsiCo (AMP), and Anheuser-Busch (180) all introduced new products. When the market settles within the next three to five years, Mintel expects that no more than ten companies will remain.

Overall, Mintel predicts the energy drinks market to grow 210%, from 2003 to 2008, fueled primarily by an expansion in the target market, appealing to women, and various ethnic groups.

Established in 1972, Mintel incorporates Mintel consumer intelligence, Global New Products Database (http://www.gnpd.com), and Mintel consultancy. Mintel is an independent research company which operates offices in Chicago, London, Munich and Sydney. For more information on Mintel, please visit our website at http://www.mintel.com.

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Alissa Ostrowski
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