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US Energy Drinks Market

PMR Provides a Detailed Study on the United States Energy Drinks Market Based on Rocketing Consumer Demand for Beverages that Boost Energy and Enhance Physical Performance

US Energy Drinks Market

Market Size & Share Analysis

The US energy drinks market is estimated to value at US$21.4 Bn by the end of 2031 from US$14.6 Bn estimated in 2024. The market is expected to secure a CAGR of 5.6% during the anticipated period from 2024 to 2031.

Market Attributes

Key Insights

US Energy Drinks Market Size (2024E)

US$14.6 Bn

Projected Market Value (2031F)

US$21.4 Bn

US Market Growth Rate (CAGR 2024 to 2031)

5.6%

Historical Market Growth Rate (CAGR 2019 to 2023)

4.8%

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Market Introduction

The market for US energy drinks is influenced by several factors such as increasing consumption of energy drinks by young adults and particularly those aged 18 to 34. These customers frequently lead active lifestyles and seek energy drinks to improve both physical and mental performance. There is also a sizable market for students, athletes, and working professionals who need rapid and convenient energy sources.

The demographic trend has been propelled by targeted marketing campaigns linking energy drinks to sports, music festivals, and extreme sports events, resulting in a strong brand association with high-energy activities and youthful excitement. Furthermore, an increasing number of health-conscious consumers prefer products made with natural ingredients, lower sugar content, and useful additives like vitamins, minerals, and herbal extracts.

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Historical Growth and Course Ahead

The market for US energy drinks was transformed in the late 1990s and early 2000s with the advent of Red Bull, which not only introduced a new product but also created an entirely new beverage category. Red Bull's unique marketing methods, which focused on extreme sports, adventure, and high-energy activities, resulted in a strong brand identity that appealed to young, active consumers.

With Busy and Demanding lifestyle of customers, they seek convenient and effective ways to boost energy and improve mental alertness, resulting in an increase in the popularity of energy drinks. The shift in customer tastes for on-the-go consumption and rapid outcomes have also contributed significantly to market growth.

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Key Trends in the Market

  • Consumers’ increasing search for energy drinks containing natural ingredients.
  • Introduction of clean packaging and aesthetically pleasant designs by leading brands
  • Launch of new energy drinks with natural sweeteners like stevia and monk by key players
  • Brands are onboarding celebrities and sports personals as their brand ambassadors.
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Drivers Shaping the US Energy Drinks Market

Increasing Innovations and Expanding Product Varieties

Fruit tastes have taken the lead in recent US energy drink introductions, with a diverse range of flavors including berry/summer fruit, orchard fruit, superfruit, melon, and citrus. Strawberry, lemonade, orange, and pineapple are the most popular flavors in energy drinks right now.

Brands are looking for novel flavors and flavor combinations to keep things interesting for customers. Recent taste advancements in energy drinks include Rockstar Refresh in watermelon kiwi. Energy drinks are a popular pre-workout beverage among active lifestyle and sports performance enthusiasts looking to maximize their workout. Now, manufacturers are adding amino acids to their energy drinks to make them even more enticing to this demographic.

Growing Preference for Natural and Organic Ingredients in Energy Drinks

Another element contributing to customers' increased need for clean products is a preference for natural, plant-based alternatives, and organic ingredients. According to our research analyst, 31% of US customers are influenced by natural and made with real ingredients claims, while 27% consider claims of no artificial flavors or colors when purchasing energy drinks.

Energy drink manufacturers that use natural and organic ingredients set themselves apart in a crowded market. This difference helps to establish a loyal consumer base that prioritizes health and wellness.

Celsius brand specializes on natural ingredients, have effectively carved out niches by appealing to health-conscious customers.

Factors Impeding the Market Growth

Growing Competition from Alternative Beverages

Consumers now have access to a diverse range of beverage options beyond energy drinks including ready-to-drink coffees, teas, functional waters, sports drinks, and natural energy shots. These alternatives meet a variety of demands, including hydration and electrolyte replacement, as well as mental focus and relaxation. As a result, customers are broadening their beverage preferences, diminishing the market share of traditional energy drinks.

Alternative beverages frequently promote themselves as healthy alternatives to traditional energy drinks, which are widely criticized for their high caffeine and sugar content. Products such as coconut water, kombucha, and cold brew coffee provide natural energy boosts while also providing extra health advantages such as probiotics and antioxidants, making them appealing to health-conscious consumers who value wellness above energy.

High Intake of Energy Drinks Raise Blood Pressure and Pose Health Risks

Energy drinks frequently include high levels of caffeine and other stimulants such as taurine and guarana, which can be harmful to cardiovascular health. Numerous studies have revealed that drinking these beverages can result in elevated blood pressure, increased heart rate, and, in rare cases, significant cardiovascular events. This is especially concerning for people who have pre-existing heart disease or hypertension, as the stimulants in energy drinks can worsen these illnesses, potentially fatal.

The health risks associated with energy drinks have prompted regulatory agencies to act. In certain regions, there are proposals to implement more regulations on the promotion and sales of energy drinks, especially for minors. Some governments have implemented regulations such as mandatory warning signs, promotional restrictions, and purchasing age limits. These legislative actions not only limit the availability of energy drinks, but also contribute to the perception that these beverages are potentially harmful, hindering market growth.

Future Opportunities for the US Energy Drinks Market Players

Replacing Artificial Sweeteners with Natural Sweeteners

Many customers are worried about the potential adverse health consequences of artificial sweeteners, such as their effects on metabolism, gastrointestinal health, and possible linkages to chronic disease. Natural sweeteners like stevia, monk fruit, agave nectar, and honey are seen as healthy options that promote a clean, natural lifestyle. Energy drink producers can address these health issues and attract health-conscious clientele by substituting natural sweeteners for artificial ones.

Natural sweeteners frequently face less regulatory challenges than artificial sweeteners, which are subjected to strict inspection and labeling regulations. Companies that use natural sweeteners can streamline the list of ingredients and create clean, and appealing labels for consumers. Transparent clear labeling can foster trust and boost consumer trust in the product.

Leveraging E-commerce Platforms to Expand Distribution Channels

E-commerce platforms allow energy drink makers to access customers beyond their local or regional marketplaces. This enhanced reach allows national and even international customers to obtain products that may not be available in their local stores. Brands can dramatically increase their market presence by working with big e-commerce retailers such as Amazon and Walmart, as well as specialized health-focused online businesses.

E-commerce platforms offer powerful data analytics tools, allowing businesses to get understanding of buyer habits, preferences, and purchasing trends. This information can be utilized to customize marketing campaigns, improve the range of products, and create personalized purchasing experiences. Recognizing which products are most popular, which age groups buy them, and how frequently they are purchased can help businesses make informed decisions and tailor their marketing efforts.

Category-wise Analysis

Category

Projected CAGR through 2031

Flavored

5.4%

Cans

5.1%

Flavored Energy Drinks to Account Significant Share in Terms of Flavor Type

Consumers are increasingly looking for variety and novelty in their beverage selections, which create a demand for unique and appealing flavors. This shift is particularly visible among young generations, such as millennials and Generation Z, who prioritize taste and experience in their purchasing decisions.

The appeal of flavored energy drinks originates not only from their ability to provide the necessary energy boost, but also from the improved sensory experience they offer when compared to standard, unflavored, or basic-flavored ones.

The use of natural and organic flavoring agents in energy drinks is increasing popularity, responding to rising customer desire for healthy and natural beverage options. Flavored energy drinks with natural ingredients and low sugar content appeal to health-conscious consumers who want both flavor and nutritional value.

Cans to Hold Notable Share in Packaging Type Segment

Cans popularity stems mostly from their practicality and convenience. Cans are lightweight, portable, and easy to store, making them ideal for on-the-go consumption, a desirable attribute among energy drink customers such as busy professionals, students, and athletes. Cans small size allows them to be easily transported in backpacks, gym bags, and even pockets, making them perfect for consumption in a range of settings.

Aluminium cans are highly recyclable and have a well-developed recycling system, making them an environment-friendly packaging alternative. Consumers are increasingly conscious of their environmental impact and frequently prefer products that reflect their sustainability principles. Brands that use recyclable cans appeal to this environmentally sensitive audience, boosting brand image and loyalty.

Country Analysis

Consumers in the United States are increasingly seeking beverages that deliver energy boosts with no/low sugar content and free from artificial ingredients. This development is resulting in the emergence of natural and organic energy drinks manufactured with ingredients such yerba mate, green tea extract and natural fruit juices.

Targeting particular demographics has become important for businesses seeking to distinguish themselves and carve out a niche in the highly competitive marketplace. This strategy comprises creating marketing campaigns and product formulas tailored to specific customer segments, such as gamers, athletes, and professionals. For example,

Red Bull have successfully targeted extreme sports enthusiasts and adrenaline addicts by sponsoring events like the Red Bull Rampage mountain bike race and the Red Bull Air Race.

Competitive Landscape for the US Energy Drinks Market

Acquisition, and partnership in the development of the innovative products and the expansion of production capacities are the key growth strategies followed by the key players in the market. Companies are continuously investing in research and development to introduce innovative flavored products in the US energy drinks market.

Top Industry Players Profiled

  • The Coca Cola Company
  • PepsiCo 
  • Cellucor
  • Red Bull GmbH
  • Monster Energy Company
  • BANG Beverage Company LLC.
  • 5-hour Energy
  • Celsius
  • Keurig Dr Pepper
  • ZOA Energy
  • NOS Energy Company
  • Congo Brands
  •  Zevia
  • AriZona Beverages USA
  • G FUEL
  • Optimum Nutrition

Recent Developments in the US Energy Drinks Market

  • Sprecher Brewing Co., a 'craft' soft drinks company based in the US, entered the energy drink industry by acquiring Juvee, a label noted for its line of flavored energy drinks. 
  • In March 2023, the mushroom-based functional energy drink Odyssey Elixir raised $ 6.3 million in Series A funding, following a $1.3 million investment in 2022.
  • In March 2024, National Basketball Association (NBA) franchise the Los Angeles Lakers have partnered with energy drink brand Prime Hydration.
  • In March 2024, Monster Energy Ultra have launched New Fantasy Ruby Red in first-ever augmented reality reveal of a beverage can.
  • In February 2024, Red Bull have revealed its latest Summer Edition drink flavoured with curuba and elderflower. It is available in 250ml, 250ml PMP, 355ml Sugarfree and 250ml Sugarfree four-pack formats.

US Energy Drinks Market Report Scope

Attributes

Details

Forecast Period

2024 to 2031

Historical Data Available for

2019 to 2023

Market Analysis

US$ Bn for Value

Key Country Covered

  • The United States

Key Market Segments Covered

  • Product Type
  • Flavor
  • Packaging Type
  • Sales Channels
  • Country

Key Companies Profiled in the Report

  • The Coca Cola Company
  • PepsiCo 
  • Cellucor
  • Red Bull GmbH
  • Monster Energy Company
  • BANG Beverage Company LLC.
  • 5-hour Energy
  • Celsius
  • Keurig Dr Pepper
  • ZOA Energy
  • NOS Energy Company
  • Congo Brands
  •  Zevia
  • AriZona Beverages USA
  • G FUEL
  • Optimum Nutrition

Report Coverage

  • Market Forecast and Trends
  • Company Share Analysis
  • Competitive Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

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US Energy Drinks Market Segmentation

By Product Type

  • Caffeinated
  • De-caffeinated

By Flavor

  • Flavored
  • Unflavored

By Packaging Type

  • Bottles
  • Cans
  • Pouches
  • Tetra Packs
  • Others

By Sales Channel

  • Hypermarkets /Supermarkets
  • Convenience Stores
  • Discount Stores
  • Specialty Stores
  • Drug Stores & Pharmacies
  • Online Retail
  • Others

By Country

  • The United States

- Companies Covered in This Report -

- Frequently Asked Questions -

The US energy drink market is projected to expand at 5.6% CAGR during the forecasted period.

Increasing preference for natural and organic ingredients in energy drinks is surging the demand for energy drinks in US.

Some of the key players in the market are PepsiCo, Cellucor, Red Bull GmbH, Monster Energy Company, Celsius, and Keurig Dr Pepper.

Cans segment to hold the significant market share in the US energy drinks market.

Introducing exotic flavors that attract consumers can benefit the brands to increase market penetration.

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