Even with increased public and congressional scrutiny, the energy category continues to crank like someone who has gulped a gallon of the stuff. Sales of combined sports, energy and weight-loss supplements continue to dominate the condition-specific market, with $10.23 billion in sales this year, way up from $6.85 billion five years ago, according to Nutrition Business Journal, which estimates the category will pull in $11.259 billion by 2014.
To explain the buzz, we convened Jeff Hendricks, MD, CEO of RIZE Beverage in Landrum, South Carolina, and Bob Green, president of Nutratech, supplier.
Fi: How do you see recent attention given to energy products by the media, Congress, and public affecting the segment?
BG: Certainly energy brands have been feeling the heat from the government and the media. But consumers are purchasing energy supplements in greater quantities than ever before. It’s really one of our industry’s largest and burgeoning categories. Let’s face it; we’re all working a million miles an hour – balancing work, family, and hopefully a little down time. It’s hard to keep up. People need the boost that energy supplements provide. So this category is not going to go away.
What we do expect to come out of this is more responsible advertising; we’ve always been advocates of that. But we also expect to see more energy formulas incorporating non-stimulant energy ingredients like Advantra Z, which research has shown works without causing any cardiovascular or central nervous system side effects. Nor does it cause you to “crash” after that initial burst of energy. In fact, Advantra Z not only increases energy by burning calories and fat, it has staying power. The long half-life of its dominant amine, p-synephrine, delivers a longer, more sustained result – even five to six hours after ingestion – without a sharp decline in activity and effectiveness. This expansion of the energy sector is a key reason why Advantra Z is experiencing such astronomical growth right now.
JH: The energy drink segment has flourished despite all of the negative attention. I think what it’s done, however, is gotten people to take a closer look at drink formulations. I think we are starting to see a drift away from the traditional energy drink and toward the functional beverage. The key will be to make something that stands out from the crowd because of the formulation, not just the marketing. The design of the top 5 energy drinks is not based on producing energy in the cells, they rely on high caffeine content for the most part. The market is poised for a drink to emerge that has a legitimate scientific formulation based on research on functional ingredients.
Fi: How can manufacturers make a product stand out in this crowded market?
JH: Using popular energy drink ingredients is not enough. Everybody seems to be building the same mousetrap or building a variation on a theme by using random combinations of B vitamins, caffeine, and an herb or two. The only hope with that strategy is with an enormous financial campaign and good-tasting product.
The other way to stand out as is with a revolutionary formulation. There are some new ingredients starting to appear. Huperzine-A and trehalose are two ingredients not used before and appeared in Rize Beverage in 2012. Huperzine-A has strong data behind it in terms of cognitive benefits and memory while trehalose is an anti-inflammatory plant-based sugar that releases twice the energy of glucose without spiking insulin.
BG: Then promoting the safety and efficacy of these ingredients – by putting the logo on the label (the natural ingredients equivalent of “Intel Inside) and showcasing the safety and efficacy research supporting that ingredient. That alone will get media attention these days.
Fi: Where do you see emerging opportunities in this sector?
JH: As the trend continues for more healthy alternatives, the health food stores, wellness centers, gyms, and spas are all open for expansion. The other opportunities include international expansion. Consumption of energy drinks by the Asian and Hispanic population is outpacing the other indices.
BG: New dosage forms are one of the biggest opportunities for this sector. We’re working with manufacturers who are using Advantra Z in all sorts of functional dosage applications: chews, bars, drinks, cookies, meal replacements, and more.
Fi: So what are your projections for the year ahead?
JH: People are becoming more health conscious in terms of sugar content, and the traditional RTD colas’ sales have been suffering. Consumers are turning to energy drinks. To continue that trend, beverage formulations will need to appeal to a more sophisticated, educated consumer, and that means using better ingredients and designing better drinks. I think that will happen and we will see growth of around 10 percent this year.
BG: Advantra Z – our proprietary bitter orange extract and the industry’s leading thermogenic ingredient – is having an historic year! Greater sales than ever before, and our biggest growth since 2004. That’s saying a lot because this ingredient has experienced annual double-digit growth since we introduced it in 1996!
BENEO Carbohydrates: Palatinose
BENEO’s functional ingredients are derived from chicory roots, beet sugar, rice and wheat and help to improve the health, taste, texture and nutritional value of a product. Through a unique chain of expertise BENEO supports the development of more balanced and healthy food products.
Morris Plane, New York
Bioenergy Life Science, Inc.
Ribose is the most critical energy component of ATP. Unless your muscles have an adequate supply of ATP, they simply cannot satisfy their astonishing energy demand. Our bodies make ribose naturally, but often the need is greater than the supply. That is why supplementing with Bioenergy Ribose is so important.
Biotropics Malaysia Berhad
Physta, Patented Freeze-Dried Stan- dardized Tongkat Ali Root Extract
PHYSTA is clinically researched and shown to support overall health, energy, muscle strength, muscle mass and enhance masculine vitality. PHYSTA uses a patented water extraction and freeze dried technology developed in collaboration with the Massachusetts Institute of Technology to deliver the purest and efficacious form of tongkat ali.
Shah Alam, Selangor, Malaysia
Customize your dosage form
Capsugel is a global leader in innovative dosage forms and solutions for the healthcare industry. We offer a comprehensive array of products and services, from hard gelatin, liquid-filled, soft-gel, and vegetarian capsules, formulation support and development.
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Greenwood, South Carolina
PURENERGY is an innovative patent-protected caffeine product that is a combination of caffeine and pTeroPure pterostilbene. In animal studies it has demonstrated a 6-8 times longer half-life than caffeine alone, suggesting a reduction in the amount of caffeine needed in a formulation to produce tangible results.
Carnipure™ L-carnitine is a nutritional ingredient that enables the generation of energy from fat by transporting long-chain fatty acids across the mitochondrial membrane. Due to its fundamental role in energy metabolism, L-carnitine is typically used by the body to support functions that have a high energy demand.
Allendale, New Jersey
Nascent Health Sciences, LLC
PQQ, as a powerful antioxidant, has been shown to protect and support the function of existing mitochondria. PQQ has also been proven to stimulate mitochondrial biogenesis — the growth and replication of mitochondria inside the cell. Increased mitochondrial mass has been associated with increased cellular ATP production.
Missouri City, TX
Advantra Z not only increases energy by burning calories and fat, it has staying power. The long half-life of its dominant amine, p synephrine, delivers a longer, more sustained result – even five to six hours after ingestion – without a sharp decline in activity and effectiveness.
973-882-7773 ext: 302
West Caldwell, New Jersey