Best Practices in Energy Drink Merchandising
BEST PRACTICES IN ENERGY DRINK MERCHANDISING
The energy drink category added new shoppers in 2023, making it one of the fastest-growing categories. Sports nutrition items that can help consumers achieve their objectives are in higher demand as more individuals develop an interest in physical fitness and sports
Energy ingredients are essential to these products. They're frequently added to aid with endurance, reducing fatigue and boosting mental concentration when exercising.
60% of surveyed1 consumers state that increasing their energy levels was their #2 health goal, and they're prepared to spend money on products that can help them do that, especially on natural products.
25% of them are spending money specifically on dietary attributes, like Non-GMO.
[1] https://www.nutritionaloutlook.com/view/how-are-natural-product-shoppers-responding-to-inflation
THE WELLNESS EFFECT
This consumer behavior trend opens the energy drink category to meet new needs such as immunity, cognitive support, and added vitamins to expand the audience. New, non-traditional target markets are attracted to these products, people such as fitness enthusiasts, on-the-go moms, healthy-eating enthusiasts. Wellness messaging, supported by lifestyle imagery and clear product benefits can be a winning focus on secondary display and messaging needs to evolve along with the audience.
IMPORTANT MESSAGING:
• Sugar Free
• Organic
• No Preservatives
• Accelerates Metabolism
• Specific Good-for-you ingredients, such as L-theanine, lutein, choline, etc.
• Functional health benefits like immune support, heart health and more
SOURCE: https://www.nutritionaloutlook.com/view/energy-drinks-in-2022-sustainable-natural-and-making-a-difference https://www.glanbianutritionals.com/en/nutri-knowledge-center/insights/energy-drink-trends-what-expect-2022
BRAND DECISIONS ARE MADE IN LESS THAN 4 SECONDS
Within that time, your shopper will typically pass 606 individual product displays. That's an average of 0.3 seconds per display.
SOURCE: EXPLORER RESEARCH GROUP, 2023
CONVENIENCE STORES ARE A KEY CHANNEL FOR ENERGY DRINK CONSUMERS
Nearly 4 in 10 (38%) of shoppers say they shop at convenience stores two or more times every week, while 62% of them visit a convenience store at least once a week.
KEEP DISCOVERY ALIVE FOR GEN Z & MILLENIAL SHOPPERS SEEKING NEW FLAVORS AND PRODUCTS
THE TOP DRIVERS OF PRODUCT PURCHASE
- Affordable price (74%)
- On sale (52%)
- Natural ingredients (52%)
- Novelty (49%)
- Proven quality (39%)
- Supports new health goal (27%)
- Trusted brand (25%)
Affordability is key, and when a product is on sale, it motivates customers to try something new.
In addition, 27% of consumers said they bought a new product to support a new health goal, so aligning products with top health goals can support new consumer acquisition.
FACTORS THAT BUILD LOYALTY
- Price discounts (83%)
- Loyalty rewards (58%)
- Better product quality (47%)
- Natural ingredients (42%)
Price and rewards remain important reasons that customers will stay with their current favorite brands—or whether they will buy new ones instead.
THE FIVE KEYS TO EFFECTIVE MERCHANDISING
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