Companies and Markets
Call us on +44 (0) 203 086 8600
Market Research A to Z | Company Profiles A to Z | RegisterRegister | Contact UsContact Us | Shopping Basket Shopping Basket
+44 (0) 203 086 8600 Call us on

UK energy drinks market dominated by GSK's Lucozade brand

Industry Sector

Food and Drink

Published

7 November 2012

Author

Matt Bodimeade

Type of News

Market

The UK energy drinks market is expected to post a compound annual growth rate (CAGR) of 5% over the next five years, however, the category will face considerable pressure from other functional soft drinks, including products such as Britvic‟s SoBe Water and Biosynergy Skinny Water, which, unlike energy drinks, are free from preservatives and artificial colours.

The UK energy drinks sector has recorded a period of sustained growth, with brands pumping out one innovation after another to its youthful target market. It is a trend that shows no sign of abating. In May 2012 Red Bull unveiled plans to launch 'Editions' - three fruit-flavoured variants in lime, cranberry and blueberry - in the UK. The range is aimed at consumers who like the effects of Red Bull, but not the flavour.

From the introduction of bigger sizes and shots to cola variants, innovation is paying off for the sector, which houses major brands such as Red Bull, GlaxoSmithKline's (GSK) Lucozade, and Coca-Cola's Relentless. Last year, it gained 17% in value share, and is now worth £791.8 million, making it the UK's third biggest soft-drinks category, according to the 'Britvic Soft Drinks Report 2012'.

In 2011, energy drinks continued to grow in popularity and expand through major sports collaborations and sponsorships. Red Bull was particularly successful with its sponsorship of Formula 1 motor racing in 2011, with the Red Bull driver Sebastian Vettel winning the world title once again.

GlaxoSmithKline continued as the leading player in the UK energy drinks market in 2011, by accounting for an off-trade value sales share of 40%. This share was entirely accounted for by the company's iconic Lucozade brand. The company's off-trade value sales reached £498 million in 2011. The company invested £32 million in marketing and advertising for its Lucozade brand in 2011.

The Lucozade YES campaign, which was launched in the summer of 2011, utilised a range of media and proved highly popular among the UK‟s youth population. The campaign, which was run across all the Lucozade sub-brands, namely Sport, Sport Lite and Energy, was targeted to consumers aged 16-24 through bringing music and sport together, with the company‟s advertisements featuring music from leading artists, such as Tinie Tempah. The Yes campaign also encompassed on-pack promotions, as well as activity on social networking sites, including Facebook.Lucozade

However, despite being present in the UK for over a year, energy shots did not provide significant growth for energy drinks in 2011, largely due to a lack of proper communication as to when these energy shots are to be consumed and the energy level rise that can be obtained from their consumption.

In the US, the main player in the market is the five-hour energy boost. Such specific, longer-lasting energy claims can't be made in the UK, and without this benefit, coupled with their relatively high prices, consumers didn't buy into the appeal of shots.

For more information on the UK energy drinks market, see the latest research: UK Energy Drinks Market

Follow us on Twitter @CandMResearch

Visitor Comments

All posts are pre-moderated and must obey the house rules.

Change Currency

GBP
USD

Change Currency

GBP
USD

Use our research skills: Get free support

Free Research Support: Let us do the work for you and find information from public and private sources of information. Contact us now and we can save you time and money.......Free Research Support

December Discounted Prices: Contact us to ask about our special discounts available in December

For the last month in 2014 we are offering discounted prices on a selection of new reports. Please contact us on 00 44 (0) 203 0868600 or via email (click here to email) to ask about prices and special discounts.

Available during December and the run-up to Christmas; Discounted prices on a selection of our reports.

Find all the research at the best prices. Great promotions being offered during December!

We are offering our clients substantial savings on the best research available during December. Please contact us either via emailor by calling our team to discuss your specific research needs on Tel: 00 44 (0) 203 0868600. We look forward to being able to find you the research you require at good prices.

Accessibility
Close

Contrast settings

Text size settings