CGA by NIQ’s latest Channel Strategy Report demonstrates how it presents a high profit opportunity for drinks brands, suppliers, and venue operators, as consumers search for exciting beverage options that make the good times last longer.
The mighty non-alc nobody’s talking about
The energy drink category stands out across several metrics, reflecting strong consumer satisfaction and appeal compared to other non-alcoholic beverages.
Moreover, the Report shows energy drinks scoring highly in terms of:
- Value for money – 89% consumer satisfaction, on par with hot tea and even matching RTD alcoholic beverages.
- Quality of service – 91% satisfaction, leading the non-alcoholic category and outpacing still and sparkling waters (87%).
- Wow factor – 90% consumer excitement, equaling whiskey and second only to RTDs (91%) in the alcoholic drinks category.
These results solidify energy drinks as the non-alc option with the potential for industry stakeholders to capitalise on untapped demand.
Consumer preferences by channel
Energy drink consumption is most prominent in drink-led and experience-driven venues, making these channels a prime opportunity for targeted trade efforts.
The top five channels driving energy drink growth include:
- High energy venues (29% of energy drink orders)
- Airport bars (21%)
- Stadiums and arenas (18%)
- Experiential bars and eatertainment venues (18%)
- Outdoor events (16%)
The data reflects how energy drinks thrive where consumers seek to keep pace in a high energy environment or to power through as the night progresses.
With 140 million weekly ordering opportunities in the category and 14% of consumers frequenting high-energy venues (half of whom visit at least weekly), there are plenty of opportunities for energy drink brands to thrive.
Leveraging the energy drink opportunity
So, what do drinks brands and venue operators need to focus on to release the full potential of the energy drink category?
- Prioritize visibility in drink-led channels – High energy venues, stadiums, and experiential bars are key battlegrounds to spotlight energy drinks as the solution to flagging energy levels.
- Emphasize value and excitement – Consumers already rate energy drinks highly for value, service, and excitement. Reinforce these attributes in your marketing and ensure staff are trained to promote energy drinks with confidence.
Size of the prize
Competitors are racing to capitalise on the growth potential of energy drinks as the category heats up. For this reason, it’s essential for drinks brands and operators to harness data-driven insights and gain the competitive edge. Those that do so are better equipped to position energy drinks optimally across the most lucrative channels.
Matt Crompton, VP Americas – On Premise said: “Energy drinks represent an untapped opportunity in the non-alcoholic space. Their performance in consumer satisfaction, excitement, and versatility makes them a top choice for operators looking to drive sales and boost margins. Industry stakeholders can crack this category’s full potential and secure long-term growth by aligning channel-specific dynamics with consumer values.”
Matt Crompton, VP Americas – On Premise said: “Energy drinks represent an untapped opportunity in the non-alcoholic space. Their performance in consumer satisfaction, excitement, and versatility makes them a top choice for operators looking to drive sales and boost margins. Industry stakeholders can crack this category’s full potential and secure long-term growth by aligning channel-specific dynamics with consumer values.”
CGA by NIQ’s Channel Strategy study offers a comprehensive overview of US On Premise channels. It uncovers profiles of interest, information around consumer visitation, and their consumption behaviors within the channels, which are integral for informing successful On Premise strategies. Download more information about the Report here or contact CGA’s experts here to dive deeper with channel specific reports.
