ENERGY DRINKS

Energy drink consumption is routine, with almost half ofconsumers drinking them multiple times a week. Purchasing location varies, as do their reasons. Consumers who buy in bulk do so in club stores andonline, while convenience store buys are made out ofease. While bulk ordering is more convenient, offering loyalty programs and exclusive flavors can appeal to shoppers who typically buy one. Flavor remains asignificant motivator for purchase, followed by branding, packaging, and endorsements. The top reason for the increase in energy drink consumption is productivity. While consumers continue to intake energy drinks, brands must focus on elevating the playing field through innovative flavors, incentivizing purchases, and adding functional claims.

Consumers are highly interested in energy drinks with functional and health claims, providing opportunities for innovations supporting physical and mental performance. Brands should consider borrowing from beverages like tea and green juice and incorporating vitamins and proteins to create well-rounded options. Currently, high-frequency consumers seek out energy drinks to increase their productivity, from high caffeine content (44%) to cognitive enhancing (50%) and performance-enhancing (54%) capabilities. With consumers already having a solid foundation in the energy drink market, interests between gender and age range differ. While traditional energy drinks are usually marketed toward males, brands may rely on younger women for growth, primarily through sports, performance, and nutrition drinks. Focusing on flavor and lifestyle marketing can attract this demographic, as women tend to increase consumption due to better flavors and stress management needs. Maintaining an engaged consumer base while innovating with diverse flavors, textures, and customizable caffeine levels can boost frequency and reach new demographics.

Innovation in the energy drink category has led to healthy sales growth. The market is expected to become a $30 billion business in five years, thanks to a well- stablished customer base and newcomers finding interest in the category. Brands can continue sustaining their base through thoughtful marketing and including other beverages in energy drinks. Blurring the lines between non-alcoholic beverages and borrowing benefits from coffee, performance drinks, and alcohol will help extend occasions and catapult interest. While energy shots fall behind energy drinks, differentiating the segments can signal success; however, pricing will need to be considered to remain top of mind.

2023    2024

Kantar Profiles/Mintel, February 2024