FDBusiness.com

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

 Breaking News
  • Nestlé Inaugurates New Nescafé Dolce Gusto Production in Vietnam Nestlé has inaugurated a new Nescafé Dolce Gusto capsule production line in Dong Nai Province, Vietnam. The site will process an expected 2,500 tons of coffee per year (equivalent to 130 million capsules), using high quality coffee beans from Vietnam. This volume is expected to increase in the coming years. The investment reflects Nestlé’s clear focus on high-growth, [...]...
  • Pink Lemonade Yogurt? Arla Brings Indulgence to New Markets Arla Foods is to expand its successful Finnish brand, Ihana, into new markets with the premium yogurt range being launched in Denmark and the UK. Meaning ‘wonderful’ in Finnish, Ihana was launched through an extensive brand launch in 2016 in Finland with an iconic new design. Indulgence is one of the few areas in growth within [...]...
  • Process Components Announces Kemutec Expansion into Netherlands Process Components has announced the expansion of subsidiary company Kemutec in Europe, with the long-established manufacturing brand opening a new office in the Netherlands. The move forms a key part of its global strategy to extend its global territories, significantly grow its revenues and create new jobs. Kemutec has more than three decades’ worth of heritage in [...]...
  • Packaging Automation Supports the Reduction in Plastic Packaging Waste With the launch of the UK Plastics Pact to address the impact plastic waste is having on the environment, retailers and manufacturers are more conscious of single use and non-recyclable plastics and want to cater for the green consumer. The industry is turning to various kinds of eco-friendly packaging with the aim of reducing plastic [...]...
  • Glanbia Cheese Joint Venture to Build New €130 Million Mozzarella Cheese Facility Glanbia Cheese, the joint venture business between Glanbia plc and Leprino Foods, plans to build a new, world-class mozzarella cheese manufacturing facility in Portlaoise, County Laois, Ireland. A site for the new facility has been identified at the recently established Togher National Industrial Estate in Portlaoise. A total of €130 million will be invested in [...]...

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

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
AEC v1.0.4

Jobs: New Product Development

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements