The Daily Mail quotes, “Protein drinks ‘are no help for athletes and aren’t better than a balanced diet’,” with The Independent also reporting that there is “no benefit from sports drinks”.However, does this affect the Protein sports drinks’ market? Clear Barrett writes In an article on The Financial Times saying that Omnipotent.Com, Rupee’s leading online sports nutrition retailer is forecast to generating earnings of EOM on annual turnover of MEME in the year 2011 from the sale of sports protein drinks and supplements, favored by bodybuilders and sports enthusiasts.
Its sales are expected to reach EMMA this year.
(Remuneration 2009) found that “Globally, the U. S is the largest market for sports nutrition supplements and represents 63% of the value. Mexico Is the second largest market with US $192 million In retail sales, followed closely by the united Kingdom with US SSL 72 million. Japan has a market size of US $87 million, while China and India have negligible sports nutrition retail sales. However, Authenticity and efficacy remain big challenges for the sports nutrition market. Remuneration, 2008) stated that “the global market for ports nutrition supplements was valued at US $4. 2 billion. The market experienced strong growth until 2008, then growth gradually declined due to a lack of consumer confidence In spending on discretionary products, as a result of the global recession. ” Furthermore, recent research have Indicated that protein supplements are bad for your health and can be life threatening. The British Dietetic Association (BAD) says “high levels of additional protein can cause side-effects, which can include nausea as well as kidney and liver damage. The BAD argues there is now evidence to show excess levels of additional protein taken over a long time can cause health problems. Jane Griffin speaking for the BAD concluded, “People who have these high protein diets are now running Into problems with their kidneys because of the amount of protein they must get rid of. ” The information provided indicates that there was a decrease in demand in the market for sports protein drinks and can be conveyed in a supply and demand diagram. The first figure (1) is a rundown where value is determined by the market.
The supply curve of a certain product as well as the demand curve of the same product is shown on the same axes. David King quotes “This Is where there Is no excess demand or excess supply, so that the quantity To summaries; “A demand curve shows the quantity that would be demanded at each price or wage, and a supply curve shows the quantity that would be supplied eat each price or wage. The price or wage will settle at its equilibrium level, which is the level at which the two curves intersect. ” Figure (2) shows a shift in demand (to the left) for sports protein drinks.
Because of the recession, globally protein drinks will be set at a price too high, even though the price does not change. Therefore, protein nutrition drinks will become less attractive for consumers, consequently forcing consumers to purchase less as the price is too high. A shift in the demand curve implies that the original demand curve has changed, meaning that the quantity demanded is affected by a factor other than price, in this case the global recession and awareness that protein drinks actually affect health and may be life threatening.
To conclude, protein sports drink manufacturers would be forced to supply less for the same price. King quotes, “if demand decreases, buyers will demand a smaller annuity at each possible price. So the demand curve shifts left, and the equilibrium price or wage, quantity and expenditure all fall. ” Price* Quantity* Price Quantity However, historically, the users of protein nutrition products have been limited to bodybuilders and athletes, but this has now expanded to include recreational users and lifestyle users (Denominator 2006).
Research in 2012 suggest that more teenagers are using muscle enhancing products, such as protein supplements, according to a study published in Pediatrics, a Journal of the American Academy of Pediatrics. A CNN article by (Trash Henry) quotes, “Researchers found the number of teens reporting muscle enhancing behavior to be substantially higher than in previous years. Boys were more likely to report these behaviors, which included supplement use and consumption of protein shakes”, while Dry.
Maria Ginsberg, the lead study author said “These behaviors are a little more common among young Dry. Nicholas Fletcher, an assistant professor of orthopedic declares that, “As their idols have increased in size they are continually pushed to get stronger, bigger and faster… There is that trickle-down effect. From this, we can assume that the market for Protein sports drinks is indeed rising, due to teenagers working towards increasing their body mass and overall strength and striving to follow in the footsteps of their inspirational leaders.
A BBC article done by Newsiest reporter (Kelsey) stated that Remuneration, whom researchers the market size of products, estimates that the sport supplement industry grew 15% last year. It estimated that one in five people who go to the gym more than twice a week use supplements that can come in the form of powders and bars. The information provided can assume that there is a cent increase in demand for sports protein drinks. Figure (3) below indicates that the quantity demanded for protein sports drink increased even though the price remained the same.
A shift to the right for the demand curve depicts the quantity of demand for protein drinks rising. Again, a shift in the demand curve indicates that the original demand relationship has changed; meaning that quantity demand for protein sports drink is affected by something other than price. In this instance, demand for protein was increased because of protein nutrition products expanding ND targeted not only athletes and bodybuilders, but also children and regular gym attendees. David King quotes, “If demand increases, buyers will demand a higher quantity at each possible price.
So the demand curve shifts right, and the equilibrium price or wage, quantity and expenditure all rise. ” To conclude, protein drinks will always be in demand as these products are used not only for sports use, but also widely used between regular gym attendees and children. However, the recent VAT increase implemented on sports nutrition drinks which has taken effect on the 1st October 2012 may cause the demand to slightly crease. References: King, D. (2012) Economics. POP Oxford Remuneration International. Lully 2009).