SIMPSONS BEVERAGES FUNCTIONAL & ENERGY DRINK TRENDS REPORT 2023

SIMPSONS
BEVERAGES
FUNCTIONAL &
ENERGY DRINK
TRENDS REPORT
2023

REINVIGORATING THE ENERGY
DRINKS MARKET
Energy drinks are alive and kicking. The category is brimming with new offerings and
new opportunities thanks to wider wellness trends.

For many, these drinks represent a lifestyle that is both energetic and aspirational.
This has been nurtured by the ‘more is more’ aesthetics and benefits of traditional
energy drinks, and the bigger brands’ affiliations with extreme sports and music
festivals.

However, the category is also evolving. Newer energy drink brands are rewriting the
narratives surrounding their products by developing different, healthier options.
Ingredients increasingly offer long-term benefits over short-term fixes, as well as
being underpinned by more meaningful brand values.

Recent rushes on new product launches show there’s a thirst for new energy drink
manufacturers and products too. In the UK shoppers have flooded stores to try
influencer-backed PRIME, which promises to be ‘where great flavour meets function’.

Flavour is a central component to energy drinks, but functionality is key.

With sales steadily growing – already rising by 10% up to 2019* - here’s how
functional and fortified drink trends will be shaped in 2023:

*Statista 2019

NATURAL INGREDIENTS FOR
LONG-LASTING ENERGY
Today, drinkers want energy without compromise. Consumers want long-term health
benefits over short-term energy boosts.

Energy drink brands are capitalising on this by using naturally derived or plant-based
ingredients. Increased awareness and understanding have raised the profile of
ingredients like ginseng, guarana, ginger and turmeric as alternatives to traditional
ingredients like caffeine and taurine. These offer a range of flavours too, often negating
the need for added sugars.

For an alternative to caffeine, guarana, a plant native to the Amazon, contains a natural
stimulant to replace or supplement caffeine in energy drinks. Guarana soft drinks offer a
stronger alternative to caffeinated drinks with nutrients on top, all with a crisp, sweet
taste.

Ginseng fortified drinks promise antioxidants and improved energy levels. Used fresh, the
root is found in many traditional Chinese medicines to treat a range of ailments. With an
earthy flavour it suits citrus notes for extra flavour.

Ginger and turmeric shots offer quick, natural energy and long-lasting protective benefits
– best balanced by sweet-tart fruit flavours like orange or pomegranate.

NEW SUPPLEMENTS TO SUIT
WELLNESS TRENDS
Well-established wellness trends, further boosted by increased cautiousness around long-
term health since the Covid pandemic, are further fuelling the energy and functional
drinks market. While a strong core of consumers continue to reach for traditional energy
drinks, newer groups are interested in functional drinks prioritising vitality and longevity.
Increasingly, ‘energising’ is regarded as a proactive or preemptive step, rather than a
reactive measure.

To meet this demand, functional drinks containing supplements like nootropics,
adaptogens and probiotics are on the rise. Nootropics promise improved focus and
memory and can be naturally derived. These range from well-known ‘wholefood’ fruits
and spices like guarana and turmeric, to amino acids like L-Theanine, commonly found in
green and black tea.

Adaptogens are herbal or plant-based ingredients - such as ginseng or ashwagandha -
which, as the name suggests, support the body to adapt. They are being used by everyone
from women approaching the menopause to gym-goers seeking extra ‘gains’ from their
workouts.

Pro-, post- and pre-biotics are all being added to everything from traditional functional
drinks to beers and milkshakes, as gut health is seen as a route to good physical health
and even improved mental health.

UNUSUAL INGREDIENTS
FOCUS ON FUNCTIONALITY
Post-Covid consumer habits have also increased appetite for immunity-boosting
products. This combined with fast-paced lifestyles and squeezed spending power
have accelerated the idea of ‘healthy hydration’ – getting more from daily water
intake while avoiding sugary soft drinks.

Fortified water brands enrich drinks with extra vitamins, minerals and electrolytes to
give just this. These supplements offer replenishment by enhancing recovery after
exercise, promoting improved sleep and reducing stress, amongst other benefits

Consumers are increasingly open to these supplements coming from unusual
ingredients too, including seaweed (to support good gut health), chlorophyll (said to
help skin healing) and cacao (to aid relaxation).

These drinks also appeal for how they’re delivered, as well as what they offer
drinkers. Products in convenient or eco-conscious formats are on the rise, such as
subscription services to support healthy habits and concentrates or sachets to limit
plastic use and associated emissions.

GOOD FOR YOU. GOOD                                                             Buoy uses its sales of naturally derived hydration drops to subsidise
                                                                               purchases for, and support charities working with, customers
                                                                               suffering with chronic illnesses.
FOR THE PLANET TOO                                                             Having established strong brands, these producers will be able to
New entrants to the functional drinks market show that the marketing of
energy drinks can be as important as their flavours and ingredients.           diversify through fresh flavours, without straying from their key
                                                                               ingredients or core values.
Where the longer-established energy drink manufacturers aligned their
brands with high octane lifestyles, newer ‘clean’ energy drink brands are      Marketing methods around CSR, sustainability and sourcing of
aligning with consumers’ values.                                               ingredients aren’t solely pursued by challenger brands, of course.
                                                                               Coca Cola has moved its GLACÉAU smartwater drinks to 100%
Runa uses guayusa, a ‘super leaf’ found in the Amazon. The brand trades        recycled packaging and launched naturally derived energy drinks
on both the plant’s performance enhancing benefits and its work giving         of its own, for example.
back to the communities from which it sources ingredients. Similarly,
Tenzing uses all natural ingredients to deliver vitamins and electrolytes to
drinkers, while working to be carbon negative and supporting sustainability
initiatives, appealing to eco-conscious consumers.

CLASSIC OPTIONS CONTINUE
TO LEAD THE ENERGY DRINK
MARKET
Even with challengers entering the market, classic energy drink combinations continue to
lead the category. The most common energy-boosting ingredients continue to be taurine,
caffeine and B vitamins. And anyone who’s worked a long shift or completed an assignment
last-minute can attest to their benefits.

A couple of energy drink brands dominate here including pioneers Red Bull and Lucozade,
and Monster. These market leaders have shown that flavours can be as crucial as their
tried and tested supplements. Red Bull leads with its one strong tutti frutti-style flavour,
while Monster proves versatility works too, with an array of flavour options.

Functionality is key though. Red Bull and Monster each rely on combinations of caffeine,
taurine and B vitamins. As a stimulant, caffeine increases brain activity, while taurine
supports metabolic processes to give physical and mental boosts. B vitamins help the body
to convert carbs into glucose for hits of energy. Lucozade Energy uses glucose itself to
revitalize drinkers while Lucozade Sport offers electrolytes for rehydration.

All three leading brands also offer sugar-free alternatives, avoiding the sugar tax and
complying with the new HFSS guidelines while appealing to the health-conscious. Sugar-
free options are key for energy drink brands.

FUNCTIONAL FUSIONS -
CROSSOVERS INTO OTHER
CATEGORIES
Having grown steadily, the functional drinks market is now fusing with other
categories and drink trends, including appealing to the growing numbers of NoLo
drinkers.

Functional ingredients are supporting the ‘sober curious’ movement, with extra
vitamins, minerals and probiotics being added to NoLo beers and RTD cocktails.
These extras appeal to those seeking to limit or counter the health implications of
even moderate alcohol intake.

FEELING ENERGISED?
LET'S WORK TOGETHER
At Simpsons we’re experts in drinks development, with the ideas and expertise to
create new and exciting beverages across all categories.

GET IN TOUCH TO DISCUSS YOUR
AMBITIONS FOR 2023
info@simpsonsbeverages.com
www.simpsonsbeverages.com
01253 766333