The Market

The world market for sports drinks was $23 billion in 2016. In the United States it was $8.5 billion and $1 billion in Canada. Gatorade accounts for 75% of the market share and is distributed in 80 countries. It is Pepsi’s fourth largest brand.

The market for regular bottled water in the U.S. was $6.9 billion in 2016. This is significant because potable water can be obtained for free from any faucet in most places in the country, and yet consumers will buy 25 billion bottles of water this year. People care a great deal about the quality of water they drink.

In a related market, in the U.S. some 60% of men and 40% of women are somewhat addicted to caffeinated beverages. Global caffeinated energy drink sales exceeded $50 billion in 2016. U.S. and Canadian energy drink sales topped $12 billion in 2016. After coffee, the leaders in the category are Red Bull, Monster and Rockstar.

Separately, the out-of-home, indoor advertising market for health club venues continues to grow. Market leaders Zoom Media and Blueline Media have seen 40% year-to-year revenue growth in the 4,000 individual gyms and health clubs in which they have screens. Patrons of health clubs are typically between 20 and 50 years old, skewed toward the professions, have above average incomes and clearly are health and lifestyle aware; in other words, one of the most sought-after demographic segments in advertising.

There were 36,000 health clubs, fitness centers and gyms in the U.S. in 2016 and another 6,000 more in Canada, altogether 42,000, with a total membership of 57.2 million people, generating an annual revenue of $21.8 billion. The average cost for gym membership is $58 per month, with a low of $40 and a high of $120 per month. Members on average go to the gym twice a week, however 67% of paid members never go. This means that of the 33% who do go regularly, they work out 5-6 times per week.


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