Introduction
This report is aimed at examining the supply and demand for energy foods and beverages. One should pay attention to the following issues: 1) the growing demand for energy foods and drinks; 2) willingness of people to pay attention to the health effects of such products; 3) the increasing number of companies that try to enter this market, and 4) the diversity of products that are available to consumers. These are the issues that should be examined more closely. This report will be based on the statistical data collected by researchers.
Main body
It is possible to identify several trends that are related to the supply and demand of energy food or beverages. First of all, the production of energy beverages continues to expand in terms of output, but it is relatively small in comparison with other segments that represent the overall soft-drink market. Currently, this segment constitutes 2.7 percent of the total soft drink market (Bodimeade, 2013, unpaged). This is one of the main aspects that can be identified. One should note that the consumption of these products increased in 2011 by almost 14 percent (Zenith International, 2012, unpaged). In particular, it rose from 3.3 billion liters to 4.8 billion liters (Zenith International, 2012, unpaged). Yet, researchers warn that this trend can be reversed since a growing number of consumers pay more attention to the health effects produced by energy drinks (Hales, 2007, p. 304).
In particular, they focus on the impacts of caffeinated beverages such as Red Bull or Monster Energy (Hales, 2007, p. 304). Therefore, the producers of these goods should be aware of these risks while developing their policies. This is one of the main details that should not be overlooked. It is possible to identify several countries that are the major consumers of energy beverages. In particular, one can speak about the United States, Mexico, Germany, and Saudi Arabia (Zenith International, 2012, unpaged). In this case, researchers speak about the consumption per person (Zenith International, 2013, unpaged). These are some of the main trends that can be distinguished. These issues should be taken into consideration by companies that want to operate in this market.
Among the main suppliers of energy drinks, one can distinguish such companies as Reb Bull, Coca-Cola Company, Monster Beverage Corporation, PepsiCo, and many other suppliers (Bodimeade, 2013, unpaged). It should be noted that such a company as Red Bull produced approximately 4.6 million cans. Other companies also maintain high levels of production. These supplies play a major role in the market, and it will be difficult for a new company to withstand their competition. Nevertheless, there are many local suppliers of energy drinks, and many consumers can be attached to these brands. This is why their role should not be disregarded.
The energy food market has also increased significantly within the recent period. In particular, one should mention that consumers throughout the world spent $ 72.3 billion in 2011 (BBC Research, 2012, unpaged). Moreover, researchers believe that the demand for energy food will only increase in the future. It is believed that the revenues of energy foods producers can reach 89.1 billion in 2016 (BBC Research, 2012, unpaged). Nevertheless, the producers of energy foods should take into account that the consumers of energy foods pay close attention to the dietary value of these foods (Hales, 2007, p. 304). Therefore, producers should remember that the preferences of many consumers can change dramatically, especially if consumers adopt a different attitude toward their lifestyles. This is one of the main issues that should be considered by businesses that want to occupy this niche of the food market.
It should be mentioned that the energy foods market is not dominated by some groups of producers. Many large companies operate in this field, but none of them holds a significant market share. Furthermore, these organizations can offer a wide variety of goods such as yogurt, noodles, cereal flakes, and so forth. One cannot say that a certain brand is more popular than similar products. This is one of the key points that should be made. It should not be overlooked by other businesses that intend to work in this area. The global supply of energy food is very difficult to measure because the producers can estimate the volume of their output with the help of different methods.
Conclusion
Therefore, one can say that the market for energy foods and drinks is now growing at a very fast rate. Furthermore, this market is still open for new entrants. This argument is particularly relevant if one speaks about energy drinks. One can argue that in the future, demand and supply for such foods and beverages will only increase. The companies, which intend to operate in this area, should focus on such countries as the United States, Germany, or Saudi Arabia because they have the highest consumption of drinks per person. Furthermore, this market includes a great variety of products. These are the main issues that can be distinguished.
Reference List
BBC Research. (2012). Energy Food and Drinks. Web.
Bodimeade, M. (2013). Global energy drinks market controlled by Red Bull and Monster. Web.
Hales, D. (2007). An Invitation to Health, Brief Edition. New York: Cengage Learning.
Zenith International. (2012). Global energy drinks market spurts ahead to $37 billion. Web.