Soft drinks, Generation Z youth prefer energy drinks

They are a candidate to become the drinks of the third millennium. Although still a minority segment among soft drinks today (9.1% of turnover in large-scale distribution), the steady upward trend in sales and the appreciation of consumers (especially the youngest) suggest that energy drinks will become for Generation Z what colas and orangeades were for Baby Boomers and Generation X. The emergence of energy drinks is a global phenomenon, driven bya steadily growing demand and a tumultuous development of supply (+21% of new products in three years, according to Mintel) and polarised around big brands offering an ever-increasing variety of products and flavours.

Italy is no exception. "In the off-trade, in the year ending June 2024, according to Circana, energy drinks recorded growth of 17.6% in volume and 14.8% in value," explain Red Bull, the leader growing in double figures (+15.2% in volume). Also in the large-scale retail channel, energy drinks are gaining more and more space. In the last twelve months alone, sales grew by 9.2% in volume and 10.8% in value, reaching EUR 216 million. "A more than surprising result considering the high price of these products, which is on average 3.43 euro/litre compared to 1.23 euro/litre for drinks," comments Elena Pezzotti of Niq.

The trends are positive for everyone. Both classic products (such as the leader Red Bull, which has increased volumes by 8% and is grinding out record shelf turnover rates, among the best in the FMCG world) and novelties, such as Monster Energy Lewis Hamilton Zero Sugar, developed by the Formula 1 world champion with the brand team, are performing well. Range extensions, new products and limited editions are proving to be able to support increased sales without penalising existing brands and are therefore proving to be crucial in expanding the market, especially as they allow new targets to be reached. Such as health-conscious consumers who feel the need for more energy and focus in everyday life, but don't just want a sugary, exciting, 'alpha male' drink, as some analysts say.

To win them over, companies have introducednatural ingredients (such as botanicals), developed products with less caffeine and reduced additives. But they have also worked on communication, to present them with a healthier image and overcome the prejudices that have held back the use of energy drinks by many sections of the public. The operation of bringing energy drinks closer to the world of soft drinks is also passing through the revisitation of many recipes, with the use of trendy ingredients (such as exotic fruit), and the proposal of more contemporary uses, such as use in non-alcoholic cocktails.