Essay About Alcohol Beverage Market And Functional Beverages

Energy Drink Market Situation Analysis
Product Situation
Beverage Industry
• The total non alcohol beverage market is over $110 Billion dollars in the US.
Functional beverages are approaching $15 Billion of that total.(1)
• The market is expanding rapidly due to growing global trend of eating and
drinking healthier
• The market is highly competitive given the attractive market growth rate
and the typically high price point on these types of beverages.
• There is an industry wide trust/believability issue from consumers on
whether most functional beverages/supplements really provide the
advertised function (examples: Brain enhancement, clearer skin, bigger
muscles, etc)
• Functional beverages/supplements are not required by the FDA to be
backed by science which has lead to a bevy of Functional beverages/
supplements making wide, barely substantiated claims over the past 5
years
• It is thought the segment of Functional beverages/supplements relating
to Sport and Fitness (examples: Gatorade, Muscle Milk, EAS) has a slightly
higher trust level from consumers due to the better informed users.
• Gatorade is the most well known and established sports and fitness
functional beverage
• The most popular ‘functions of sports and fitness beverages/supplements
are enhanced hydration, facilitation of building muscle, faster muscle
recovery, weight loss, and energy.
• Several of these functions formally came in pill or powder forms and were
primarily used by hard core fitness professionals and athletes. Products
are increasingly converting to liquid form as it is less intimidating for
mainstream consumers and easier consumption.
• Creditability is the largest challenge for all functional sports and fitness