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Energy Drinks
Invigorating the Beverage Market
The days of coffee being the No.1 pick-me-up drink seem to have disintegrated. Typically, people have always leaned on coffee to give them that caffeine buzz to wake up in the morning and stay alert during the day. However, 12 years ago, smart marketing and even stronger ingredients delivered the introduction to America’s first energy drink. In 1997, the Red Bull Energy Drink quickly revolutionized beverages through a complex mix of amino acids, vitamins, Caffeine and Artificial Sweeteners. This drink was designed for people to get that instant energy spike specifically for those on-the-go with busy lifestyles.

Soon after its introduction, Red Bull took control and now holds a significant share of the energy drink market in the United States and Europe despite major beverage players like Hansen, Coca-Cola and Pepsi jumping into the pool and creating their own line of energy drinks. Most people started consuming energy drinks because the effects would typically last longer than coffee as well as improve their mood. By the time energy drinks caught on, the main groups targeted by these companies were younger crowds such as college and high school students. Most of these young people were looking for an alternative to coffee and something to keep them energized throughout the school day. As of today, close to 70% of all energy drink consumers range from those in their teens to mid-30s. To add to the hype, club goers often enjoy their favorite drink mixed with some combination of fruit juice, alcohol and energy products like Red Bull or Monster.

Energy drinks can certainly heighten awareness, boost mental stimulation levels and provide nutrients, which begin with the quality and blend of ingredients in these drinks. Some of the most common ingredients in energy drinks include Caffeine, Taurine, Inositol, Glucuronolactone, B-Vitamins, Guarana, L-Carnitine and Panax Ginseng. The leading energy sparking additives in these drinks include Glucuronolcatone and Taurine, which both provide stimulation to battle fatigue, increase mental awareness and induce other psychological effects. Several B-Vitamins, like Niacin (B3), Pantothenic Acid (B5) and Folic Acid (B9) are popularly marketed for energy drinks with claims of converting sugar into energy and regulating red blood cells to deliver more oxygen. On the herbal side, Guarana and Panax Ginseng serve as catalysts in energy drinks. Guarana’s potency in particular contains more than double the caffeine found in coffee beans while Panax Ginseng is known as a stimulant that helps resist stressful situations with its antioxidant properties. Still, the most widely used base additive in beverages and soft drinks is Caffeine. More than 90% of North Americans consume this stimulant daily, it is known to reduce drowsiness and induce alertness. These ingredients serve as a model for many highly publicized and advertised energy drinks that have impacted the beverage industry of today.

Powerful ingredients coupled with consumer demand continue to show that energy drinks are still booming with no signs of slowing. In fact, since 2003, the market for energy drinks bubbled to more than a 400% sales growth rate. Last year alone, North American consumers drank over 1.3 gallons of caffeinated energy drinks.

By 2010, the energy drink industry is expected to reach over $10 billion in sales. It has already taken market share away from other drink and beverage products such as sports drinks, soft drinks and juices. With the right ingredients, production and promotion, numerous energy drink manufacturers and retailers should see an increase in the success of energy beverages as they continue to invigorate our fast paced lives.