FDBusiness.com

The Impact of Sugar Tax on the UK Sports and Energy Drinks Market

 Breaking News
  • Chivas Brothers Opens New Head Office Chivas Brothers, the Scotch whisky business of Pernod Ricard, has opened a new 27,000 sq ft head office in the centre of Glasgow. Jean-Christophe Coutures, chairman and chief executive of Chivas Brothers, says: “We need to keep moving with the times and this is the beginning of a new and exciting chapter for Chivas Brothers [...]...
  • Unilever Achieves 100% Renewable Electricity Across Five Continents Unilever has announced that its factories, offices, R&D facilities, data centres, warehouses and distribution centres across five continents are now powered by 100% renewable grid electricity. As far as possible, Unilever’s transition to renewable electricity has been delivered through supporting the development of local renewable energy markets, with 38% of its grid electricity supplied through [...]...
  • Landmark Court Ruling Opens the Way For Launch of Signum® by Quinn A recent landmark patent ruling has heralded the launch of Signum® by Quinn, a mono PET plastic tray.  The arrival of Signum® by Quinn follows a long and successful patent challenge by Irish plastic packaging manufacturer Quinn Packaging, against patents held by Klöckner Pentaplast and Faerch. In July the Intellectual Property Enterprise Court (IPEC) in [...]...
  • Danish Crown Presents its New Brand Identity Farmer-owned Danish Crown is setting a new direction towards a more sustainable future from farm to fork. A new brand and narrative will make it clearer to customers and consumers that Danish Crown has started this transformation. At the same time, Tulip Food Company is to change its name to Danish Crown Foods. Danish Crown plans [...]...
  • Lantmännen and Yara Lead the Way Towards World’s First Fossil Free Food Chain Lantmännen, the Nordic region’s leader in agriculture, machinery, bioenergy and food products, and Yara, thespecialist in agricultural products and environmental protection agents, are taking a pioneering role in the transformation of the food system. The partners will launch a pilot project with the ambition to introduce the world’s first certified fossil free food chain. This move [...]...

The Impact of Sugar Tax on the UK Sports and Energy Drinks Market

The Impact of Sugar Tax on the UK Sports and Energy Drinks Market
September 12
10:16 2016

With the tax on sugary soft drinks due to come into effect in April 2018, the majority of UK sports and energy drink users say they expect their purchasing of these products to be affected as a result of any price increases. Indeed, new Mintel research reveals that one in three (32%) British consumers who drink sports and energy drinks would cut back on the amount of sugary varieties they consume if the price were to increase, while one in five (20%) say they would stop drinking sugary varieties altogether. Meanwhile, almost two in five (37%) say they wouldn’t change their drinking habits at all.

Despite these reported spending changes, low-sugar and sugar-free variants of sports and energy drinks are set to benefit. Over one third (37%) of those who would reduce their consumption of sugary sports or energy drinks if the price were to increase say that they would switch to low-sugar or sugar-free versions as a result. Furthermore, almost half (48%) say that they would drink other drinks instead, such as juice, smoothies or milk, while 28% would switch to a less expensive brand.

Already the impending sugar tax has caused an uplift in product innovation. According to Mintel Global New Products Database (GNPD), 28% of sports and energy drinks launched in the UK so far this year* have carried a low, no or reduced sugar claim, up from just 10% of sports and energy drink products launched in 2015.

Amy Price, Senior Food and Drink Analyst at Mintel, says: “Sugar continues to be an issue in the market and the pending sugar tax is expected to have an adverse effect on consumption. Positively for the market, however, a strong minority of sports and energy drink users would not change their habits following the introduction of the sugar tax. This is likely owing to the infrequent usage within the category, meaning that the impact on total grocery budgets of the tax would, for most drinkers, be decidedly modest. Ongoing investment in low, no and reduced sugar formats will be essential to providing a different option for consumers, especially if these are at a lower cost to the consumer.”

Today, half (49%) of Brits drink sports or energy drinks, rising to 80% of men aged 16-24. Branded products are currently the most popular variety; however, frequency of usage is low as just 16% of Brits have drunk a branded sports drink, and 12% have drunk a branded energy drink, at least once a week in the past 12 months**.

MintelEnergyWhat’s more, despite the recent backlash against sugar, standard varieties of the drinks remain the most popular. Less than three in 10 (28%) Brits who drink energy drinks consume low, no or reduced sugar varieties, while 27% drink this low, no or reduced sugar variety of sports drinks.

Moving forward, however, Mintel research highlights significant consumer interest in new product innovation using more health-oriented ingredients. Indeed, over one quarter (28%) of those who drink sports and energy drinks say they’d be interested in seeing cold-pressed juice included in these drinks, 25% express interest in trying these products made with mineral water and 22% express interest in these products containing bits of fruit.

“Innovation in the non-alcoholic drinks market is blurring the lines between different categories. ‘Cold-pressed’ has become an increasingly popular label in the juice sector, with these ‘raw’ fruit juices and smoothies positioned by some operators as more nutritious than standard products due to not having been heat-processed. This health halo could be mined by sports and energy drinks brands to capitalise on the trend through products that look to cold-pressing techniques,” Amy Price adds.

Finally, Mintel research indicates that products made with more naturally-derived ingredients are likely to appeal to consumers. Approaching two in five (37%) consumers say that it would be good to know the origin of ingredients used in sports and energy drinks, for instance Sicilian lemons or Brazilian guarana, while another three in five (29%) would be interested in reduced sugar sports and energy drinks made with plant-derived sweeteners.

MintelLogoCroppedWhat’s more, one in five (20%) say that energy drinks made with superfood ingredients, for example ginseng, are worth paying more for.

“Information on origin of ingredients and reference to how they are sourced could bolster trial of a sports or energy drink. While tropical and ‘punch’ flavours have become popular as brands look to capitalise on sporting events such the Rio 2016 Olympics, more could be done to highlight the origin of exotic ingredients,” Amy Price concludes.

*January-August 2016

**12 months to June 2016

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

Jobs: New Product Development

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements