Do you ever feel like you need a pick-me-up in the middle of the day? If so, you’re not alone.
Many of us need a boost from time to time and we often head to the fridge to grab an energy drink. This could be just before a test, a long drive, a sports game or in the middle of a sleepy afternoon.
But who is the target market for energy drinks? And what are they looking for in these beverages?
In this article, we will discuss the target market for energy drinks by segmenting it based on the reasons why people consume these drinks and the perceived benefits they get from them.
What is an Energy Drink?
According to the CDC, an energy drink is a beverage that typically contains caffeine, added sugars, additives and legal stimulants.
These drinks are marketed to people who want an energy boost to stay alert and energetic. The target market for energy drinks includes students, professionals, athletes, and anyone who needs an extra burst of energy.
Despite their popularity, there are some risks associated with consuming energy drinks. According to this article by the Mayo Clinic, excessive intake of caffeine or caffeine-like substances can lead to nervousness, irritability, insomnia, and other ailments.
Nonetheless, according to the NIH, other than multivitamins, energy drinks are the most popular dietary supplements consumed by American teens and young adults. This trend is not limited to the United States but is global. And so it is no wonder that the global energy drink market is expected to touch $85 billion by 2026.
It is this market that we will now analyze.
Segmentation of the Target Market for Energy Drinks
The Target Market for Energy Drinks can be broken down into the following segments based on the reasons why people consume energy drinks:
- Performance Enhancement
- Cognitive Functioning
- Physical Appearance
- Stimulation
- Pleasure
1. Performance Enhancement
This market segment believes that consuming energy drinks can improve their physical performance. This could be in the form of improved endurance, strength, or speed. In some cases, these consumers use energy drinks as a pre-workout supplement to improve their performance during a workout.
There is limited evidence to support the idea that energy drinks improve physical performance. The buzz people feel from consuming an energy drink can easily be a result of the caffeine and sugar found in these drinks. It could be this temporary buzz that pushes people into performing better, thus making them link the drink to improved performance.
However, from a marketing standpoint, there is a perceived benefit that comes from energy drinks. And so, when we perform market segmentation based on this benefit, we can target those consumers who believe that these drinks enhance performance.
This creates a valuable segment for the manufacturers of energy drinks to target.
2. Cognitive Functioning
This segment of the target market for energy drinks is similar to the first segment except that it believes that energy drinks help in cognitive functioning.
While it is known that the caffeine and sugar in these drinks help temporarily boost alertness, focus, and concentration (not unlike coffee and tea) there is no evidence to prove that it actually improves cognitive functioning in the long term.
Having said that there is enough proof that there is a clear market for those who consume an energy drink for the temporary mental boost that it gives. This could be having a Coke on a long drive to keep you awake. Or it could be a shot of Red Bull just before a game. Or a Monster Energy before an important test.
So, for people who are looking for a short-term mental boost, energy drinks can be an appealing option and such people are naturally a very interesting market segment for makers of energy drinks.
3. Physical Appearance
A third segment of the target market for energy drinks is interested in their physical appearance. Looking good is a need of this segment.
This group believes that by consuming energy drinks, they will look better and have more energy. This could be because they associate being thin with having a lot of energy or because they think that the ingredients in some energy drinks (like taurine) will help their appearance.
There is no evidence to suggest that energy drinks have any impact on physical appearance, but this segment of the target market still consumes these drinks in large numbers.
From a marketing standpoint, it is interesting to note that there are people who buy and consume energy drinks with the hope that they will look and feel better.
4. Stimulation
This group includes people who consume energy drinks for their stimulant effects, such as those derived from caffeine and sugar. Stimulation can lead to increased alertness, improved cognitive function, and better physical performance.
This target market is especially interested in the energy drinks that are marketed as providing a boost for working out or studying. They are looking for an edge to help them achieve their goals.
Caffeine is the most popular stimulant found in energy drinks, followed by guarana and taurine. These ingredients all work together to provide temporary increases in mental & energy levels.
When it comes to choosing an energy drink, this market segment is interested in taste as well as function. They want a beverage that will give them an immediate burst of energy, but they also don’t want one that tastes too artificial or bitter.
There are a number of different energy drinks on the market that cater to this segment, such as Red Bull, Monster, and Rockstar. These brands have built their businesses around providing an extra boost for people who need it.
5. Pleasure
This segment includes people who consume energy drinks for the pleasure or enjoyment they get from them. This group is typically not looking to improve their physical performance or endurance, but simply enjoying the taste or sensation of drinking an energy drink.
For some, this may be because they find it stimulating or refreshing, while others may enjoy the social aspects of consuming energy drinks with friends. Some people in this segment may also consume energy drinks for the perceived benefits related to pleasure or enjoyment, such as increased focus or concentration.
Whatever the reason, people in this segment represent a target market for energy drinks manufacturers and retailers.
Summary
The target market for energy drinks includes people who are looking for a boost – either in physical performance or cognitive function or some sort of stimulation. For example, students who need to stay up late to study for exams or athletes who are looking for an edge in their sport.
This market also includes people who turn to energy drinks to look better and feel better, as well as those who consume energy drinks simply because they like them.
Each of these segments has different needs, motivations, and demographics that energy drink manufacturers can target with their products. By understanding the target market for energy drinks, companies can develop products that appeal to specific consumer segments and create marketing campaigns that resonate with their target audience.