Sports Drinks in Australia

PROSPECTS

Despite strong consumer loyalty, category witnesses significant price promotions

Consumers exhibit strong brand loyalty in sports drinks which means new players will require significant investment to win share over the players that are the traditional leaders in the category. Despite this, sports drinks saw minimal unit price growth in 2019 due to the high frequency of price promotions during the year, especially in supermarkets.

Consumers’ growing health consciousness encourages growth of reduced-sugar sports drinks

The trend of being mindful of one’s health and wellness is having an impact on the consumption of sports drinks. This is due to the high levels of sugar contained in these drinks and the strong connection between sugar consumption and negative health issues such as dental decay and obesity.

Clear sports drinks such as G-Active appeal more than light coloured varieties such as Gatorade G2

Consumer perception is having a strong influence on the success of some sports drinks. For instance, some believe that because G-Active Electrolyte Water is clear they think it is healthier but less flavoursome.

COMPETITIVE LANDSCAPE

Coca-Cola Amatil remains the leader in sports drinks

Coca-Cola Amatil’s Powerade was the leading brand by off-trade value sales in 2019. The company’s off-trade volume share within sports drinks increased over the review period.

Schweppes Australia is the number two player in sports drinks

While Schweppes Australia recorded a significant decline in its share of sports drinks over the review period as a whole, the company saw a good recovery in share in 2019. This growth was attributable to G-Active Electrolyte Water, which has gathered momentum since being introduced in 2017.

Mizone extended to include reduced sugar variant marketed towards women

Towards the end of the review period, Mizone was also extended to include a variant containing one-third less sugar than the original. The brand extension is marketed as a better for you sports drink for women that provides fast-acting hydration.

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