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Consumers are still looking for products that give them an energy boost, but they‘re shifting toward more natural products and new delivery systems.
The Hartman Group’s “Health and Wellness 2015” report found that while six in 10 consumers said “having enough energy for an active lifestyle” was important to meeting their wellness aspirations and goals, almost a third of consumers viewed their energy levels as urgently needing improvement. That energy deficit means the market for energy supplements has a huge upside, particularly for products offering shoppers something new and different.
IRI data shows that the market for energy powders and shots is still strong, with dollar sales for energy drink mixes across all outlets for the 52 weeks ending March 20, 2016, up more than 10 percent and dollar sales of energy shots up nearly 3 percent. Category leader Living Essentials, which makes the 5-hour Energy brand, has a whopping 91 percent of category sales and dollar sales gains of nearly 3 percent for the period.
Farmington Hills, Mich.-based Living Essentials keeps the brand interesting with new flavors and formulations. This May, 5-hour Energy launched a limited edition extra-strength cherry flavor backed by a cause-related marketing campaign. The company will donate 5 cents from the sale of every specially marked red-white-and-blue bottle of Extra Strength Cherry flavor 5-hour Energy to the Special Operations Warrior Foundation (SOWF), a top-rated nonprofit organization that ensures funding for a full college education for the surviving sons and daughters of fallen military special operations forces who lose their lives in the line of duty.
While 5-hour Energy dominates the category, a closer look reveals that newer delivery systems are growing the category beyond traditional shots and mixes to include gummy products and lozenges. Energy bars are also an area for growth.