Published Date : Jan 08, 2016
Rising popularity and consumption of energy drinks by all age groups have boosted the demand from the global energy drinks market. Energy drinks are formulated with ingredients to boost sugar level in the body thereby increasing the total energy level of the body. Most of these energy drinks are marketing as healthy alternatives to other sugar-saturated and carbonated drinks. However, this remains a point of contention because certain energy drinks have been found to contain ingredients that are potentially harmful to children. Still, the global energy drinks market is projected to register healthy growth in the coming years with surging demand from athletes, sportspersons, and those leading a hectic lifestyle.
The energy drinks market has been monopolized by two brands- Gatorade and Red Bull. Market players are trying to break the monopoly of these two brands by looking at untapped market segments such as geriatric population. To gain a foothold in the market, the key players are also looking at incorporating organic and natural ingredients in energy drinks. For example, in India, Hector Beverages, maker of popular Paper Boat drinks, is changing its formulations to appeal to the local consumers while complying with the regulations set by food regulator FSSAI.
On the orders of FSSAI, the company had to recall its energy drink Tzinga as the formulation contained both caffeine and ginseng as the key ingredients. Hector Beverages is planning to relaunch the product with changed formulation. The company’s most popular product, Paper Boat, has appealed to a niche market with energy drinks in local flavours such as kokum, aam panna, aamras, and jaljeera. This year, the company is looking forward to introduce a number of new products including flavoured milk. To expand its presence across smaller towns in India, Hector Beverages has struck a distribution partnership with Indo Nissin, the maker of Top Ramen noodles.