Energy Drinks

Market Overview

Energy drinks are one of the fastestgrowing segments of the total nonalcoholic beverage industry, thanks to a combination of factors: a dedicated base of high-frequency users, retention of high brand engagement among category leaders, better-for-you (BFY) innovation from newer brands, and consumers’ everpresent need for energy.

The pandemic only increased consumers’ energy needs, resulting in strong market growth and spurring changes in consumers’ purchase behaviors. Consumers shifted their dollar spend from c-stores to conventional food and drink retailers, which in turn resulted in increased multipack purchases, a trend that ultimately benefits the market.

Key Issues

Consumers turn to energy drinks to fulfill key need states such as while working/studying and during long drives; this strong association is a primary driver of the energy drink market’s period of prolonged growth.

A new crop of brands has successfully garnered attention among highfrequency energy drink consumers, fitness enthusiasts and even some noncategory consumers.

Appealing to non-category consumers is a challenging and narrow path; 41% of noncategory consumers say that nothing would motivate them to try an energy drink. However, 26% of consumers say that they would try an energy drink that offers functional benefits in addition to energy.

What Consumers Want, and Why

Newer brands that deliver on flavor, provide consumers a noticeable energy boost and feature BFY claims will rise in market prominence.

By Barbara Ruhs