The Sports Drinks Industry

When we say 'sports drinks', we mean drinks created specifically to hydrate people before, during or after a workout and/or provide sodium and carbohydrates to aid recovery.

William Owen, a British chemist, created in 1927 a glucose and water drink called Glucozade. A few years later, the drink was renamed Lucozade.

Owen's original intent was to create a beverage that sick people could drink to help them recover from their illness. The drink wasn't marketed to athletes at the time. However, over time, the company's owners realised the drink had the potential to be a global hit as a recovery drink, so it was put on the market.

It took about 40 years for the American market to embrace the idea of sports drinks. The first product was Gatorade, which was originally designed for the University of Florida football team in 1965.

1988: Powerade was created. 

Coca-Cola wanted a drink that could compete with Gatorade, so they created their own beverage. However, Coca-Cola was at a disadvantage as Gatorade had more than two decades on Powerade, and especially since Gatorade was the NFL's official drink.

1991: Powerade came alongside Gatorade and put their bid to sign Michael Jordan as their spokesperson. Gatorade offered Jordan about 15 million dollars for 10 years while Powerade came up with a 5 year, 750,000 dollar contract. Jordan obviously chose Gatorade, and launched the brand even higher in the marketing world.

Clever marketing and huge athlete endorsements have kept Gatorade in the forefront of our minds when it comes to hydration. However, Powerade has managed to carve out a little extra space in our minds.

From the 90's through 2000's, the two popular sports drinks were huge players in the market; although, Coke's acquisition of Vitaminwater in 2007 signalled a change in the market, and that change is conveyed successfully in BodyArmor's branding message, "Athletes evolve; so should their drinks and nutrition."

Approximately 60% of US adults consume sports drinks. Sales of all nutritional and performance drinks grew by 42% in the US from 2009-2014. The sports drink segment 'benefits from a high perception of good flavour, affordability, and an interest in the products among general consumers, including non-athletes.' the report states.

The market has gotten larger in the UK and Europe as beverage companies jockey for position in a fitter future. Sports drink suppliers are among the main sponsors of events such as triathlons, road races, etc. Lucozade Sport - which is investing £8.35 million in its "Get your edge back" campaign - is a main sponsor of the London Marathon, with its 36,000 entrants.

According to a 2015 article from Forbes, bottled water takes a 35% share of the beverage market, and in the sports drinks market, Gatorade takes 77% share, while Powerade has a 20% share. Gatorade is being sold through supermarkets, retail stores, websites, etc.

Originally, the drinks were designed for medical purposes, aiming to help sick people get better. Now, the so-called sports drinks are in high demand by retailers, athletes and non-athletes.