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What is the market size of hangover cure related product in US? (annual potential in USD$)
Hello! Thank you for your question about the market size of anti-hangover products in the U.S. The short answer is that there is no recent research on the subject, as such cures aren't popular enough among Americans, as opposed to countries like Korea or Japan. According to the market research by Bright Day, a brand that offers an anti-hangover product, most people aren't even aware of such remedies. The outdated Euromonitor study, which predicts that the market will reach $785mln in 2018, remains the only point of reference for brands and experts. Below you will find a deep dive of my methodology and findings.
METHODOLOGY
I started by looking for industry reports and expert articles on anti-hangover products U.S. market from the last two years. I tried both general and more specific search terms, i.e., related to shots, drinks, supplements. Unfortunately, there were none.
Then, I decided to look for the older article mentioned in the request, hoping it would point me in the right direction. It seems that the number ($785mln) includes products that are taken for hangovers but are not necessarily marketed as hangover remedies.
I concluded that despite being outdated, the forecast also involves many uncertainties. However, many more recent articles also cite it as the most relevant point of reference.
It further assured me that it's impossible to find credible sources from the last two years that provide the market size for anti-hangover products. There is also no sensible way to triangulate it, as there are no statistics on how many people use such cures in the U.S. Many of the articles I found suggest that they are not widespread, which may be the reason for the lack of research.
FINDINGS
According to Synthesio's research, over 78% of English-speaking social media users try to cure their hangovers with fast food, with 12% using painkillers. Also, other experts suggest that products like anti-hangover drinks have limited popularity in the U.S. because they face fierce competition from energy drink giants. There is also a low trust factor, as most brands try to appeal to the youth demographic, while the older customer base may have a bigger potential. The American market falls behind countries like Korea, where anti-hangover drinks generate $200mln in annual revenue.
BRANDS' PERSPECTIVE
Despite this, emerging brands offering anti-hangover products are optimistic about their chances on the market, confident that with the right marketing, they can still be successful. Recently, hangover remedy Morning Recovery raised $240,922 on IndieGogo, surpassing its goal by 961%.
Also, in 2016, Bright Day conducted its own market research before launching their anti-hangover supplement. According to their survey, 98% of people aren't even aware of such products. Still, they see a huge market opportunity in reaching the people whose productivity suffers to hangovers. The Centers for Disease Control and Prevention says that this contributes to $179bln lost annually. They estimate their potential market at $6.7bln, with 8% annual growth. However, they are not professional analysts, and they don't explain how they arrived at this result.
Similarly, Eddie Huai, who got inspired by Japanese $178mln hangover remedies industry, targets people aged 25-40, whose bodies don't recover easily after drinking. His product, FlyBy, isn't for the binge drinking market. So far, 60% of his U.S. customers returned to rebuy it. According to him, lack of success of similar cures on the American market can be attributed to bad marketing and lack of scientific research.
Also, though it's outdated, in 2011, Hangover Joe's estimated the total potential market for their product to be between $10 and $50mln.
CONCLUSION
To wrap it up, the information on the anti-hangover products market is fragmented. It wasn't properly researched due to the low popularity of such remedies, compared to cures that aren't marketed as anti-hangover. Outdated report by Euromonitor, which predicts that the market size will be $785mln in 2018, remains the most widely cited forecast, but there are many uncertainties around it. I suggest researching case studies about particular products or consumer habits related to hangover cures to get a better idea about the opportunities for your product.
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