Fortified/Functional Beverages in Germany

PROSPECTS

FF energy drinks performing well despite challenges

FF beverages continued to record strong growth in 2018, supported by the popularity of FF energy drinks. Despite growing awareness of the health dangers of consuming too many energy drinks and further debate about a potential ban on sales to children under the age of 16, almost all brands recorded an increase in value sales in 2018 as energy drinks remained popular beverages, especially among young people, as well as mixers for cocktails in bars and clubs.

Naturalness wins over functionality

If excluding beverages which are fortified/functional by default, such as energy drinks and sports drinks, the most dynamic categories over the forecast period will include FF fruit/herbal tea and FF 100% juice, which demonstrates the importance of naturalness in FF beverages. Products such as 100% juices and infusions with wellbeing claims are perceived as purer and healthier.

A clearer message could prove beneficial

Many FF beverages tend to have a general wellbeing claim thanks to their added vitamins and minerals. As a result, the message about why consumers should choose FF beverages over standard ones can be lost.

COMPETITIVE LANDSCAPE

Red Bull continues to lead FF beverages

While Red Bull Deutschland remained the leading player in FF beverages in 2018 thanks to its strength in energy drinks, it continued to face an ongoing offensive from its competitors, not only Coca-Cola with its Monster Energy brand but also smaller brands such as 28 black, which outperformed the FF beverages category in terms of value sales growth. Further launches are expected over the forecast period, particularly of more natural or reduced sugar products, such as the new variants of Monster launched in 2018, namely Monster Pipeline Punch with fruit juice or Monster Ultra Violet, which is less sweet and has no calories.

Powerade retains its lead in FF sports drinks

Despite its considerable marketing resources, the US giant PepsiCo and its brand Gatorade continued to fail to outshine Coca-Cola and its Powerade brand, which benefits from a core consumer base in Germany as well as strong marketing activities. With the brand having a unique position in Germany in FF sports drinks, its main competitors derive from other sports products such as bars, tablets, powders and gels, as well as more specific sports brands available in specialist outlets.

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