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Energy Drinks Market Analysis

ID: MRFR//1384-CR | 167 Pages | Author: Pradeep Nandi| July 2023

The energy drinks market is characterized by dynamic and evolving dynamics, shaped by a combination of consumer trends, health considerations, marketing strategies, and regulatory influences. This segment of the beverage industry has witnessed substantial growth, driven primarily by the increasing demand for products that provide a quick energy boost. The market dynamics are heavily influenced by changing lifestyles, with consumers seeking convenient solutions to combat fatigue, enhance alertness, and support physical performance.

One of the key drivers in the energy drinks market is the fast-paced and hectic nature of modern life. As individuals face demanding schedules and a constant need for increased productivity, the appeal of energy drinks as a quick and portable source of energy has grown significantly. The convenience factor has made these beverages popular among students, professionals, and athletes, contributing to their widespread acceptance across diverse demographics.

The perception of energy drinks as performance enhancers is a crucial aspect of the market dynamics. With the incorporation of ingredients such as caffeine, taurine, B-vitamins, and amino acids, these beverages are marketed not only as fatigue fighters but also as aids to improve mental focus, endurance, and physical performance. The association with an active and dynamic lifestyle has contributed to the sustained growth of the energy drinks market.

Health considerations and awareness play a dual role in shaping the market dynamics. On one hand, consumers are increasingly conscious of the ingredients in their beverages, seeking options with reduced sugar, natural additives, and functional ingredients. This has led to a surge in the development of healthier and natural energy drink alternatives, tapping into the growing trend of wellness and clean-label products.

On the other hand, concerns regarding the health impacts of excessive caffeine consumption and high sugar content have prompted regulatory scrutiny and public debates. The market dynamics are, therefore, influenced by ongoing efforts within the industry to address these concerns through reformulation, diversification of product offerings, and transparent communication about nutritional content.

Marketing strategies are paramount in the energy drinks market, where branding, image, and messaging play a critical role in attracting consumers. Companies often leverage associations with extreme sports, adventure, and high-energy activities to create a dynamic and aspirational brand image. Celebrity endorsements, social media campaigns, and event sponsorships are common tactics employed to connect with the target audience and build brand loyalty.

Innovation is a driving force in the energy drinks market, with companies continually introducing new flavors, formulations, and packaging options. The quest for differentiation and the desire to cater to diverse consumer preferences have led to the development of specialized energy drinks, such as those with natural or plant-based ingredients, enhanced hydration benefits, or targeted at specific demographics, such as gamers or fitness enthusiasts.

Distribution channels play a crucial role in the accessibility of energy drinks to consumers. The market dynamics are influenced by the availability of these beverages in a wide range of retail outlets, including convenience stores, gas stations, gyms, and supermarkets. The expansion of online retail channels has also contributed to the accessibility of energy drinks, allowing consumers to purchase their preferred brands with ease.

Regional and cultural influences contribute to the diversity within the energy drinks market. Preferences for specific flavors, ingredient combinations, and packaging formats can vary significantly across different regions. Adapting to local tastes and preferences is a key consideration for companies looking to establish a strong presence in various markets.

Global Energy Drinks Market Overview


Energy Drinks Market Size was valued at USD 71.40145 billion in 2023. The Energy Drinks industry is projected to grow from USD 76.29959 Billion in 2024 to USD 133.35373 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.23% during the forecast period (2024 - 2032).


Energy Drinks Market Overview


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


The market has been segmented based on product type, distribution channel and region. Based on product type the market is segmented into Drinks, Shots, Mixers. Based on type it is segmented into Conventional, Organic. Based on distribution channel the market is segmented into On-trade and Off-trade. Major regions considered within the market are North America, Europe, Asia Pacific, rest of the world.


Prominent players in the Energy Drinks Market include Red Bull, Taisho Pharmaceutical Co. Ltd., PepsiCo. Inc., Monster Energy, Lucozade, The Coco-Cola Company, AriZona Beverages USA, Living Essentials LLC, Xyience Energy and many more. These players are expected to maintain their market position by continuously innovating and expanding their product offerings to cater to evolving consumer preferences.


Functional beverages that promise consumers more physical and mental energy through ingredients such as caffeine, taurine, guarana, ginseng, and B vitamins remain highly popular in the market. However, despite the wide appeal of increased energy, energy drinks have historically been targeted toward a relatively limited group of teenagers and young adults.


Recent Development 


Red Bull introduced its Summer Edition line in the UK in March 2023, featuring a refreshing Juneberry flavor. Concurrently, the company strategically partnered with Keurig Dr Pepper in October 2022 to expand its distribution network into Mexico. These initiatives underscore Red Bull's commitment to introducing innovative flavors and reaching new markets.


Monster Beverage, distributed by Coca-Cola Europacific Partners in certain regions, unveiled two additional flavors in September 2022 to diversify its consumer base. This move exemplifies Monster's strategy of catering to a broader range of tastes and preferences, thereby enhancing its market appeal.


PepsiCo's acquisition of Rockstar in 2020 solidified its position in the energy drink market. Furthermore, PepsiCo has demonstrated its commitment to innovation with products like Soulboost, a sparkling water infused with functional ingredients. This reflects the growing consumer demand for healthier alternatives in the energy drink category, aligning with PepsiCo's forward-looking approach to product development.


Major energy drink brands are experimenting with new flavors to attract fresh consumers. Red Bull has introduced The Coconut Edition, Rockstar has launched Recovery in Marshmallow, and Coca-Cola Energy has proven that cola flavor can work for energy drinks too. However, Bang has taken the lead with its creative range of flavors, which include Birthday Cake Bash, Key Lime Pie, Champagne, Frosé Rosé and many more. Brands are responding to the demand for healthier options by releasing sugar-free and calorie-free energy drinks. This trend benefits athletes and people watching their weight. Additionally, sugar-free options can be useful for gamers looking to avoid a sugar crash. Red Bull, Monster, and Rockstar have all introduced sugar-free and calorie-free versions, signalling an exciting new direction for the energy drink industry.


Monster has introduced its Java Monster line of ready-to-drink hybrid beverages, which are targeted toward coffee enthusiasts. These drinks contain coffee, milk, and cream, as well as typical energy drink ingredients. Flavors like Kona Blend, Mocha, French Vanilla, and Farmer's Oats are available. Starbucks Doubleshot Energy Coffee is a rival product in this category. Sports nutrition is another growing segment for energy drink brands, with more companies incorporating performance and recovery ingredients such as protein and amino acids. Monster's Muscle Monster Energy Shake has twenty-seven grams of protein from milk protein concentrate, while Monster Hydro Super Sport is fortified with BCAAs, calcium, magnesium, as well as extra caffeine. Bang energy drinks also contain BCAAs, EAAs, and creatine. Powerade's Ultra is an example of a product that blends sports nutrition and energy drinks infused with creatine, BCAAs, B vitamins, and additional electrolytes. It looks like a sports drink, but the addition of creatine and BCAAs elevates it to a higher standard for sports performance.


Energy drinks formulated specifically for gamers have emerged as another area of innovation, using functional ingredients associated with improved focus, reaction time, vision, and cognitive support. These products may include ingredients such as caffeine, lutein, choline, Bacopa monnieri, sage, and L-theanine. Low or no sugar formulas are important, with a "no crash" claim being a popular selling point.


Energy Drinks Market Trends




  • Consumer Inclination Toward Low Sugar/Sugar-Free Beverages




With the increasing occurrence of chronic diseases such as diabetes, individuals are becoming more conscious about the significance of following a healthy diet and engaging in physical activities. As a result, people are favoring dietary habits that are low in calories, sugar, or free of sugar in their food and drink choices to reduce the risk of lifestyle diseases. When it comes to beverages, natural sweeteners like stevia are preferred by consumers. Major companies such as PepsiCo Inc. and Coca-Cola have committed to reducing or eliminating artificial additives and sugar in their products in response to changing consumer preferences. Beverage manufacturers are also creating new products in response to the rising demand for sugar-free or low-sugar options as customers try to avoid the negative effects of excessive sugar consumption. Nexba, a provider of non-alcoholic beverages, has adopted a similar approach by expanding its product selection to cater to health-conscious consumers. In May 2022, Nexba launched a range of caffeine- and sugar free energy drinks with added vitamins and prebiotics. The Nexba Natural Energy drinks are available in Lemon & Yuzu and Wild Citrus.


There is a growing consumer inclination toward low-sugar and sugar free beverages, including energy drinks. As consumers become more health-conscious and seek to avoid the negative effects of excessive sugar consumption, they seek healthier options in the energy drink category. Many energy drink manufacturers have responded to this trend by introducing low-sugar or sugar free options. For example, Monster Energy has a range of sugar-free drinks, including Ultra Sunrise, Ultra Citron, and Ultra Red. Red Bull also offers a sugar-free option called Red Bull Sugar free. Other brands like Celsius and Reign offer low-sugar options with natural sweeteners like stevia. In addition to reducing sugar content, some energy drink manufacturers add functional ingredients to their products to appeal to health-conscious consumers. For example, Celsius offers drinks with added vitamins, minerals, and natural caffeine from green tea. Reign has a line of performance drinks with added amino acids, B vitamins, and CoQ10.


Energy Drinks Market Segment Insights


Energy Drinks Product Type Insights


The Energy Drinks Market segmentation, based on the product type, has been segmented into drinks, shots, and mixers. The drinks segment accounted for a market share of 79% in 2021 in the energy drinks industry revenue. Consumers are opting for drinks over other options because they provide instant hydration and essential nutrients for the proper functioning of the body. Moreover, drinks have a broader consumer base due to the wide variety of beverage options available. As they serve a functional purpose, consumers can consume them during work, exercise, or leisure activities, thereby driving product demand. Energy drinks are a kind of carbonated beverage that is formulated to offer long-lasting energy and refreshment. These drinks are usually composed of caffeine, sugar, and other flavorings, and are frequently marketed as a substitute for coffee or other drinks containing caffeine. The market for energy drinks is projected to experience considerable expansion in the coming years, due to rising demand from young consumers and individuals who prioritize physical fitness. Additionally, these beverages are viewed as a replacement for coffee, making them more appealing to individuals who prefer a less potent caffeine dosage. This is poised to positively impact the energy drinks industry in the forecast period.


Sep 2022: Gatorade entered the energy drink category with its first caffeinated beverage - Fast Twitch. A 12-ounce bottle would contain 200mg of caffeine, electrolytes, and B-Vitamins. The beverage was developed with NFL and Sport-performance Experts.


Feb 2022: PepsiCo launched a hemp-based energy drink in the U.S., containing ingredients such as hemp oil, vitamin B, spearmint, lemon balm and caffeine.


Aug 2022: PepsiCo has launched two new Rockstar Recovery variants to add to its existing portfolio, but with added ingredients including collagen and vitamin C. The two new limited-edition flavours – Pineapple Coconut and Mango Lemonade – will join the existing orange and lemonade variants but with additional ingredients.


Apr 2020: Japan’s Taisho Pharmaceutical Holdings has released Japan’s first caffeine-free energy drink containing the botanical ingredient, enXtra, which has been clinically proven to improve alertness and focus up to five hours with or without caffeine.


Figure 2: Energy Drinks Market, by Product Type, 2021 & 2030 (USD Million)


Energy Drinks Market, by Product Type, 2021 & 2030 (USD Million)


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Energy Drinks Type Insights


Based on type, the Energy Drinks Market data has been bifurcated into conventional and organic. In 2021, the conventional segment had the highest revenue share, accounting for more than 84.4%. This trend is predicted to continue throughout the forecast period. The conventional segment is expected to benefit from a lack of consumer awareness regarding organic products. The organic industry is still in its initial stages and consumers are not fully aware of the benefits of organic functional drinks. Moreover, conventional drinks are usually less expensive than organic ones due to differences in ingredients. Retailers prefer conventional drinks over organic drinks because they can make a greater profit per unit of shelf space. Conventional energy drinks are beverages that contain elevated levels of caffeine, sugar, and other stimulants that are intended to boost energy levels and enhance physical performance. Some popular examples of conventional energy drinks include Red Bull, Monster, and Rockstar. These drinks typically contain elevated levels of caffeine, which can have negative effects on the body if consumed in excessive amounts. They may also contain elevated levels of sugar or artificial sweeteners, which can contribute to weight gain and other health problems if consumed regularly.  


Figure 2: Energy Drinks Market, by Type, 2021 & 2030 (USD Million)


Energy Drinks Market, by Type, 2021 & 2030 (USD Million)


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Energy Drinks Packaging Type Insights


Based on packaging type, the global energy drinks industry has been segmented into cans, bottles, and others. In 2021, the cans segment dominated the energy drink market with a revenue share of 50.9% and is expected to maintain its leading position over the forecast period. Consumers are becoming more discerning with their preferences and opting for energy drinks in cans over canned wine and other alcoholic beverages. Metal cans are preferred by younger consumers as they are more convenient and less fragile than glass. Due to the COVID-19 pandemic, bars and restaurants have been closed, leading to a surge in demand for canned energy drinks. Many consumers are looking for functional energy drinks, which are readily available in cans, and manufacturers have responded by launching new products in this format to cater to this market. The canned energy drink market is a segment within the overall energy drink market that specifically refers to energy drinks sold in cans. Cans have become a popular packaging option for energy drinks due to their convenience, portability, and ability to maintain product freshness. The market for canned energy drinks has seen significant growth in recent years, driven by factors such as increasing demand for energy-boosting beverages, the availability of a wide range of flavors, and aggressive marketing strategies by energy drink manufacturers. This further drives the growth of the energy drinks industry in the forecast period.


Figure 3: Energy Drinks Market, by Demographics, 2021 & 2030 (USD Million)


Energy Drinks Market, by Demographics, 2021 & 2030 (USD Million)


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Energy Drinks Distribution Channel Insights


Based on distribution channel, the global energy drinks industry has been segmented into on-trade and off-trade. In 2021, the off-trade segment was responsible for the largest share of revenue, accounting for over 70%. This segment continues to be the primary source of consumption for energy drinks. The growth in sales can be attributed to the increasing demand for energy beverages. Consumers typically examine the product quality, ingredients, and brand before making a purchase, which is why off-trade channels are responsible for driving product sales. Most major energy drink manufacturers offer their products through off-trade channels such as supermarkets and hypermarkets, which have a wide customer reach. Popular brick-and-mortar stores in the United States where energy drinks are sold include Walmart, Walgreens, CVS Pharmacy, Target Brands Inc., Kroger, and Safeway. Walmart stocks products from various brands.


Figure 3: Energy Drinks Market, by Distribution Channel, 2021 & 2030 (USD Million)


Energy Drinks Market, by Distribution Channel, 2021 & 2030 (USD Million)


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Energy Drinks Regional Market Insights


By Region, the study segments the market into North America, Europe, Asia-Pacific and the Rest of the World. North America is the largest region in the energy drinks market with a market share of 40% in 2021 and is likely to register a CAGR of 7.17% during the projected period.


Figure 3: ENERGY DRINKS MARKET SHARE BY REGION 2021 (%)


ENERGY DRINKS MARKET SHARE BY REGION 2021 (%)


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


The North America energy drinks market is expected to expand at a robust rate over the projected period, according to Market Research Future. The increased consumption of energy drinks in the region is due to multiple factors, such as the rise in disposable income, the emergence of local brands, and increased marketing and promotional activities. The changing demographics and drinking habits of North Americans have also contributed to the growing demand for energy drinks in the region. As markets become more globalized and migration patterns change, consumers are introduced to new drinking habits, which creates new opportunities for energy drink manufacturers to expand their product portfolios. The popularity of energy drinks in the United States and the prevalent coffee culture have made energy shots a mainstream product, leading to increased sales of energy drinks in the country. Energy drinks have become a staple at social gatherings, parties, and celebrations, with brands such as Red Bull and Monster Beverages offering various flavors and packaging options, including PET bottles and cans, to cater to consumer preferences. As soda consumption decreases, manufacturers like Coca-Cola and PepsiCo seek to capitalize on their brand recognition by expanding their presence in the growing energy drink market.


Europe’s energy drinks market has witnessed significant growth over the years, driven by factors such as changing lifestyles, increasing demand for energy-boosting beverages, and aggressive marketing strategies by energy drink manufacturers. One of the key trends in the Europe energy drink market is the increasing popularity of natural and organic ingredients as consumers become more health-conscious and seek healthier alternatives to traditional energy drinks. Manufacturers have responded by introducing organic and low-sugar options and drinks that incorporate natural ingredients such as green tea, guarana, and ginseng. Another trend in the Europe energy drink market is the growing demand for energy drinks that cater to specific needs and occasions. For example, there are energy drinks designed for athletes and fitness enthusiasts and those marketed as study aids or hangover cures. This trend has led to developing a wide range of energy drinks with diverse flavors, ingredients, and packaging options.


The Asia Pacific region is one of the fastest-growing markets. Countries such as China, India, and Japan are expected to experience significant growth in the market due to several factors, including consumers' openness to trying new flavors and the demand from immigrant populations who enjoy a diverse range of beverages. This has led to increased regional product launches as manufacturers seek to appeal to a wider range of consumers and drive demand. The demand for non-carbonated drinks is increasing in Asia-Pacific due to urbanization, rising disposable income, and growing consumer health consciousness. Adolescents are a significant consumer group for energy drinks, as they are attracted to the products' claims of improving performance, endurance, and alertness.


Additionally, long, and erratic working hours and the prevalence of social gatherings drive consumers toward consuming energy drinks. Furthermore, energy drinks made with natural ingredients and lower sugar content are becoming more popular and attracting health-conscious consumers' attention. For instance, brands that use natural ingredients extracted from coffee beans are expected to see growth in the region. The market is also projected to grow due to manufacturers' increased promotional and advertising strategies, thereby boosting the growth of the Asia-Pacific energy drinks market.


The rest of the world, which includes Latin America, the Middle East, and Africa, is also expected to witness moderate growth in the energy drinks industry due to anticipated increases in disposable income, changing consumer lifestyles, and rising health concerns. As more people in these regions can afford energy drinks, they will become a more popular choice for those looking for a quick energy boost. Additionally, as consumers become more health-conscious, they may turn to energy drinks with natural ingredients and fewer artificial additives. Overall, the market of Energy Drinks in these regions is expected to experience moderate growth as consumer preferences shift and the market becomes more diversified. The increasing demand for convenient beverages, changing lifestyles, higher income levels, urbanization, and sports activities drive the African energy drinks industry. This trend is expected to augment the growth of the functional beverages market, including drinks and mixers.


Energy Drinks Key Players & Market Competitive Landscape


The Energy Drinks Market is profitable, both for existing players as well as new entrants. The market is highly competitive, with all the players competing to gain a higher market share. Intense competition, rapid advances in energy drinks technology, and regulations are key factors that confront the market growth. A substantial level of rivalry is observed among the existing manufacturers in the market. Our analysis revealed that market players had adopted different strategies and innovative research and development techniques to expand their business and secure their position in the nergy drinks industry. In recent years, strategic movements by major players included approvals, which have been used as market penetration strategies and a means to reduce competition.


Companies in the Energy Drinks Market are continuously introducing innovative products with fresh flavors and creative packaging designs to entice more customers. Red Bull, for example, has launched its "Red Bull Editions" line, which includes various variations such as sugar-free Red Bull Editions Zero Sugar & Zero Calories, caffeine-free Red Bull Editions, organic Red Bull Edition, and more. These variations are targeted toward fulfilling diverse consumer demands across different regions globally.


The global energy drinks mixer market is witnessing the entry of both small and large players who are introducing innovative products and expanding their portfolios to appeal to consumers worldwide. The demand for energy drinks is particularly high among the working population and younger generations, leading to the growth of the market. Energy Drinks are gaining traction globally due to the availability of various flavors and variants. To stay competitive in the market, key players are focusing on collaborations, expanding their distribution channels, and launching new products. Prominent players in the Energy Drinks Market include Red Bull, Taisho Pharmaceutical Co. Ltd., and PepsiCo. Inc.; Monster Energy; Lucozade; The Coco-Cola Company; Arizona Beverages USA; Living Essentials LLC; Xyience Energy, and many more. These players are expected to maintain their market position by continuously innovating and expanding their product offerings to cater to evolving consumer preferences. In key markets like North America, Europe, Asia-Pacific, the Middle East & Africa, and South America, the global players who have established production facilities or sales offices have expanded their operations.


Key Companies in the Energy Drinks Market Include



  • Red Bull

  • Taisho Pharmaceutical Holdings Co Ltd.

  • PepsiCo, Inc

  • Monster Beverage Corporation

  • Suntory Beverage & Food Limited

  • The Coca-Cola Company

  • Living Essentials Marketing LLC

  • Xyience Energy

  • Arizona Beverages USA

  • Vital Pharmaceuticals, Inc.


Energy Drinks Industry: Market Developments


Mar 2023: Red Bull has expanded its ‘Summer Edition’ line with the launch of a new Juneberry flavour energy drink. The new juneberry drink provides a flavour reminiscent of dark cherries, raisins, and blueberries, and “aims to create excitement” among consumers as flavours are a key driver of growth in the sports and energy category.


Mar 2022: Red Bull has unveiled its latest addition to its Summer Editions portfolio with the launch of a strawberry-apricot flavoured energy drink. Red Bull Summer Edition Strawberry-Apricot features flavours of strawberry, apricot and peach and contains caffeine, B-group vitamins, sugars, taurine and acesulfame K and sucralose, and water. The energy drink was designed to be enjoyed on its own or in a seasonal mocktail.


Sep 2022: Red Bull has released a new flavor, Red Bull Winter Edition Fig Apple to add to its series.


Sep 2021: Red Bull has unveiled a new limited-edition beverage in the US – Red Bull Winter Edition Pomegranate. The new offering features notes of pomegranate, sour cherry, and red berries. Red Bull Winter Edition Pomegranate contains caffeine, B-group vitamins, sugars, taurine, and alpine water.


Sep 2021: Red Bull Africa launched its new exotic energy drink flavor, called Cactus Fruit Flavor. The flavor consists of cactus fruit, dragon fruit, and pitaya.


Apr 2020: Japan’s Taisho Pharmaceutical Holdings has released Japan’s first caffeine-free energy drink containing the botanical ingredient, enXtra, which has been clinically proven to improve alertness and focus up to five hours with or without caffeine.


Sep 2022: Gatorade entered the energy drink category with its first caffeinated beverage - Fast Twitch. A 12-ounce bottle would contain 200mg of caffeine, electrolytes, and B-Vitamins. The beverage was developed with NFL and Sport-performance Experts.


Feb 2022: PepsiCo launched a hemp-based energy drink in the U.S., containing ingredients such as hemp oil, vitamin B, spearmint, lemon balm and caffeine.


Aug 2022: PepsiCo has launched two new Rockstar Recovery variants to add to its existing portfolio, but with added ingredients including collagen and vitamin C. The two new limited-edition flavors – Pineapple Coconut and Mango Lemonade – will join the existing orange and lemonade variants but with additional ingredients.


Energy Drinks Market Segmentation


Energy Drinks Application Outlook



  • Residential

  • Commercial


Energy Drinks Product Type Outlook



  • Cardiovascular Training Equipment

  • Strength Training Equipment


Energy Drinks Demographics Outlook



  • Men

  • Women

  • Unisex

  • Kids


Energy Drinks Pricing Outlook



  • Premium/ Luxury

  • Mass


Energy Drinks End User Outlook



  • Recreational

  • Professional


Energy Drinks Distribution Channel Outlook



  • Supermarkets & Hypermarkets

  • Specialty Stores

  • Online

  • Others


Energy Drinks Regional Outlook



  • North America

    • US

    • Canada

    • Mexico



  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia & New Zealand

    • Rest of Asia-Pacific



  • Rest of the World

    • South America

    • Middle East

    • Africa



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