The Energy Drink Industry Essays

894 Words Sep 19th, 2015 4 Pages
The energy drink industry is a rapidly growing industry that grew 60% from 2008 to 2012 in a market worth more than 12.5 billion dollars (Heckman). Due to the popularity of energy drinks, it is predicted to grow even more in the future. The strengths of the industry are the premium prices and high supplier power. The premium prices are a strong plus to the industry because it creates a high profit margin. Consumers are willing to pay more for an energy drink than they would for alternatives such as soda. Consumers are willing to pay more because energy drinks are often marketed as a “high performance” drink. Supplier power is another strength of the energy drink industry because it gives producers a surplus of buying options when it comes to the necessities for the production of the drink.
On the other hand, the weaknesses of the energy drink industry are the nutritional value of the drinks and the high rivalry between energy drink companies. According to Brown University Health Promotion, energy drinks are made up of caffeine, guarauna, and ginseng, which have a high risk of increasing heart rate and blood pressure. This brings a lot of negative attention to the industry because there also has been an increase in the number of emergency room visits and even deaths due to the consumption of energy drinks. The other weakness, rivalry, is very crucial to the industry as there are at least three leading brands: Monster, Rockstar, and 5-Hour Energy. Along with those top…

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