The energy drinks market - United States

Energy drinks are a type of soft drink rich in caffeine, sugar, and other stimulants. Energy drinks are consumed to boost energy levels, often in relation to sports. However, energy drinks are not necessarily associated with sports but are also consumed in leisure settings. The most common ingredients in energy drinks are caffeine, taurine, guaran, and vitamins. On top of this, additional energy is provided through high levels of sugar. The global energy drinks market is expected to continue on the positive growth path seen during the last couple of years. In particular, between 2023 and 2028 the market is expected to grow at CAGR 7.5%. [Market Data Forecast] Several key drivers will drive this expansion; first, as consumers focus more on fitness, they are more inclined to consume energy drinks. Secondly, energy drinks offer immediate energy boosts which are often more effective than coffee. The global market is highly concentrated and dominated by three brands: Monster Energy, Red Bull and TC Pharmaceutical Industry. Together, these players accounted for 43.9% of sales in 2019. The position of these players will most likely remain intact for the years to come due to the massive marketing expenditures implemented by Red Bull and Monster in particular. In the US, the market is expected to grow, albeit at a slower pace than globally. This is related to the relative maturity of the US energy market. In particular, health trends and millennials will drive this growth. In other words, energy drinksplayers in the US must implement specific marketing campaigns which underline the health benefit of their product in order to reach the largest potential customer group. This becomes particularly important as the industry is not only faced with strong internal competition, but also external pressure from products such as coffee and tea. The global market is dominated by Red Bull and Monster. In 2022, Red Bull sold 11.6 billion cans of energy drinks. By 2020, Red Bull's global market share in energy drinks was 43%.