Diet drinks fuel growth amid flat sales
After a strong performance for several years, sales of sports drinks are showing some fatigue. The category, which had registered double-digit growth for the last several years, saw sales flatten in 2012. The good news is that Mintel projects the market for sports drinks to grow by 52% from 2013 to 2017.
Diet sports drinks will continue to fuel category growth. The diet segment stole nearly 6 points of market share from regular sports drinks from 2010 to 2012 alone, according to Mintel. Regular sports drinks still accounted for nearly 77% of total sales in 2012, but the consumer research firm believes that continued migration to lower-calorie and lower-sugar versions will drive sales and market share growth for diet sports drinks through 2017.
Pepsi’s Gatorade remains the category’s market leader. The brand was the fifth-largest beverage trademark in 2012, according to Beverage Marketing Corp. data, and commands about 75% of the sports drink market, while competitor Coca-Cola’s Powerade claims around 20% of the market, according to Euro-monitor International data.
In the first quarter of 2013, sales of Gatorade were up, while Coca-Cola’s sales of Powerade slipped, reversing a trend that has been threatening Gatorade’s wide lead. But the brand still needs to keep an eye on the competition. Mintel’s research shows that Powerade and Powerade Zero’s competitive pricing has helped to steadily increase sales for the brand, growing its market share in food, drug and mass channels from 14.3% to 23% from 2006 to 2011.
This year, Gatorade re-introduced Thirst Quencher Gatorade Frost in Glacier Cherry flavor. The drink is designed to help rehydrate, refuel and replace hydration that’s lost through sweat. Gatorade also introduced a new 11-oz. bottle for its Gatorade Recover Protein Shake with an easy-to-grab shape and twist-off cap.
Looking ahead, sports drinks that contain B vitamins for energy, such as Powerade ION4, could attract energy drink consumers who have grown concerned about the safety of those products. Mintel suggests that increased educational and marketing efforts focusing on the natural energy available from sports drinks could bring more energy drink users to the category. The consumer research company expects future growth in the segment to track with growth in the Hispanic consumer market, since use among Hispanic consumers is high.
The article above is part of the DSN Category Review Series. For the complete Sports Drinks Buy-In Report, including extensive charts, data and more analysis, click here.
Manufacturers look to solution-based products
In recent months, several manufacturers have come to the table with new, solution-based formulas that lean more toward treatments to battle such ailments as thinning hair and sensitive scalp.
"Thinning hair and hair fall are a universal — and for many, very emotional — problem for millions of women and men," stated Cihat Dunder, founder and CEO of B’iota Botanical Laboratories, in announcing the U.S. debut of its European herbal solution for people with thinning hair.
According to the American Academy of Dermatology, hereditary hair loss is a medical condition that affects about 30 million American women and about 50 million American men. Furthermore, a man has a 50% chance of experiencing hair loss by the time he is 50 years old.
After more than a decade in more than 35 countries, B’iota Botanical recently entered the U.S. market with B’iota shampoos and leave-in serum, which feature a proprietary blend of ingredients developed over four years by B’iota. When applied directly to the root of the hair, it has been clinically shown to reduce thinning hair due to damage and revitalize the appearance with thicker, fuller, stronger and faster-growing hair, the manufacturer stated.
Looking to help women battle fine and thinning hair, Dr. Lawrence Samuels, chief of dermatology at St. Luke’s Hospital in St. Louis and founder of skin care and hair care product line Rx Systems PF, has formulated a line of hair-volumizing products and supplements called D-Fine. The D-Fine line of hair volumizing products includes shampoos, conditioners and vitamin supplements formulated to strengthen and thicken hair while promoting hair growth.
To help those suffering from sensitive scalp — which experts describe as itching, redness, tingling and burning — Kérastase Paris has brought its Dermo-Calm line to the United States. According to the brand, studies have shown that 2-out-of-5 women and 1-out-of-3 men are concerned with the health of their scalp because of its sensitive nature. Dermo-Calm aims to instantly soothe and calm a sensitive scalp, while providing suppleness and softness to hair. The collection includes Bain Vital Dermo-Calm shampoo and Sensidote Dermo-Calm intensive treatment.
Multivitamins, sleep supplements lead growth
Dietary supplement product lines with the strongest growth in overall consumer bases include vitamins B and D, multivitamins and melatonin, the popular supplement that helps regulate sleep cycles, according to the latest TABS Group 2013 Annual Vitamin Study released in May.
"We saw some gains in adult multis, really for the first time in awhile," reported TABS Group CEO Kurt Jetta. "The new news there? I would surmise it was gummy vitamins," he said. "Melatonin is another [supplement] that saw some pretty substantial gains [in overall consumer base]. A lot of that is driven by the over-the-counter sleep supplements," Jetta noted. For example, the recent launch of Procter & Gamble’s ZzzQuil has prompted many retailers to migrate their sleep sets from the bottom shelf to the top, helping to raise the profile of all supplements in the category.
"The heavy buyers are really defined by how many different types of products [they purchase]," Jetta said. "If you ever [looked] into the cabinet of a hardcore supplement user, you’d see 10 or more [VMS] bottles in their cabinet."
The number of heavy users remains steady, but there is significant growth in the number of consumers who are trying supplements out — those who report that they take one to two supplements either occasionally or regularly, Jetta said.
A separate survey conducted on behalf of the Council for Responsible Nutrition found that the 68% of consumers who have committed to supplementing their diets are actually making healthier lifestyle choices overall. That suggests VMS sets could become a lead-in to many product lines that support healthier lifestyles, such as yoga accessories and light gym equipment, along with pedometers and activity tracking devices.
"Supplement users seem to understand the importance of combining, rather than isolating, healthy practices," said Judy Blatman, SVP communications for CRN. "It’s the total lifestyle that’s going to help you feel good and stay fit, and taking supplements is one piece of that lifestyle."
The article above is part of the DSN Category Review Series. For the complete Vitamin Buy-In Report, including extensive charts, data and more analysis, click here.