Article Analysis of Energy Drinks

Article Analysis of Energy Drinks

June 1, 2012

University of Phoenix

ECO/365

Principles of Microeconomics

Energy drinks sales have skyrocketed in the United Stated over the past several years. According to Berk (2012) website beverage marketing estimates that the sales of energy drinks have grown 14.4% in 2011. Energy drinks were first developed in response to the public’s focus toward healthier drinks that would not only give a boost of energy but would also provide vitamins. The energy drink Red Bull was the first to debut in the United States in 1997, and still the current leader in this market. The increasing demands of people’s daily lives has left them more tired than ever, especially since they are giving less time to important tasks, such as sleeping and eating. This created the perfect avenue for a very receptive market because energy drinks offer stimulant energy, vitamins, and even often claim nutritional value. The United States is now one of the top 10 consuming countries of energy drinks.

The popularity of energy drinks is due to the huge caffeine boost they offer. Energy drinks are now offered in a verity of sizes, in a can, in plastic bottles, and in novel flavors such as coffee or tea-based or unusual fruit flavors. The addition of ingredients like hydration, recovery, alertness, anti-aging or immune health has expanded the functionality of energy drinks into new areas. Innovations in packaging have also helped in bringing in new consumers, by providing increased convenience a wider choice for consumption.

Energy shots are proving to be one of the strongest growing areas in the energy drinks sector. They are packaged mainly in two ounce plastic bottles. With the world geared toward healthier energy, energy shots presence in the foreseeable future could well be on its way to proliferating the globe. Energy shots are becoming popular because manufacturer’s would like to find the point of...