Reenergizing the Market for Energy Beverages

  Sales of energy beverages are increasing as consumers seek drinks containing caffeine and any other energy-inducing ingredients to boost their alertness and productivity. Along with choosing leading brands l, consumers are reaching for energy brands being marketed as healthier and better-for-you hydration options.

  Energy beverage formulations typically contain some combination of carbonated water, caffeine, sugar, stimulants, herbs, vitamins, amino acids, antioxidants, flavorings and colorings. Where they tend to differ is in the proportions of the ingredients and whether they come from natural or artificial sources.

  The caffeine in energy beverages can be sourced naturally or synthetically, and the levels can vary from 70 to 240 mg in a 16-oz can or bottle. For comparison, there are approximately 35 mg of caffeine in a 12-oz can of a regular carbonated soft drink and about 100 mg in an 8-oz cup of coffee.

  Some energy beverage brands advertise that they don’t use anything artificial and are reducing their ingredient panels to the minimum to appeal to the trend toward clean labels and healthier beverages.

  California-based Positive Beverage is one example of this. Chief executive officer and co-founder Shannon Argyros called Positive Energy “the cleanest energy beverage on the market today” because she said it contains green tea extract, stevia, natural flavors, no colors and no sucralose or erythritol.

  “There’s nothing in there that doesn’t need to be in there,” she said. “That’s definitely what sets us apart.”

Argyros said her incentive for creating Positive Energy was to give her son a better energy beverage than she had found on shelves.

  “I looked at every nutrition panel in the store and couldn’t find a product I was comfortable giving him,” she explained.

Dye-free is another feature consumers are increasingly searching for in products, said Sally Lyons Wyatt, global executive vice president and chief adviser of consumer goods and foodservice insights for the market researcher Circana, Chicago.

“There’s always a part of the population that understands ingredients and what’s in the package because they study it,” she said. “They’re purposeful at looking at labels and looking for products with clean ingredients, simple ingredients.”

Growth projections are encouraging for the energy beverage sector. Mintel expects continued growth in the market, although the London-based market researcher said energy drink brands still need to innovate and evolve to meet consumer demands despite past successes.

Innova Market Insights’ analysis of trends in the sector said energy drinks with active health claims experienced a 3% compound annual growth rate (CAGR) from 2020-2025. The Netherlands-based market intelligence and analysis company noted that increased launches highlighted functional ingredients, such as electrolytes, vitamins, minerals and protein.