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A Closer Look at the Energy Drink Market

energy drink market

Energy drinks are quickly increasing in popularity, with the sector’s market value growing at an ascending rate as the business continually taps new markets. This expansion is happening so expeditiously that current financial forecasts expect a market value of $225 billion (USD) by 2026 – massively stimulated growth for an industry that seeks to do just that.

A Look at the Big Players in the Energy Drink Market

The crown jewel of energy drinks, Red Bull amassed the most sales in 2021, acquiring $3.26 billion (USD) in last year’s annual revenue. Their successful fiscal year accounts for 25% of the total energy drink market’s revenue. The brand also held fourth and fifth place, among the top five best-selling energy drinks last year, as its extension brands, Red Bull Sugar Free and Red Bull Editions, reached a combined total of $1.27 billion (USD). Almost parallel with the corporation in market share, Monster Energy placed second with a 2021 total of $3.23 billion (USD) in revenue.

 

Holding 88% of the energy shot industry revenue, 5-Hour Energy continues to remain the leading brand in a wilting sector. Energy shot sales are on the decline, with immediate effects being pandemic-induced, as consumers spend less time in convenience and grocery store checkout lines and have less need for instant energy boosts. With a market value of $978 million (USD) in 2020, which fell to $824 million (USD) in 2021, the downward trajectory of the energy shot business contrasts the big boom of energy drinks.

 

Enhancing their gaming performance, energy drink companies have begun sponsoring eSports teams, investing in top groups and giving gamers the caffeinated boost that keeps them keen. G Fuel, an energy drink brand, has a $305 million sponsorship contract with team FaZe Clan, while Red Bull sponsors team Cloud 9, with an astonishing $350 million contract. Keeping gamers at the top of their game, while also expanding brand recognition and bettering brand image for energy drink companies, this rising trend of exchange proves profitable for both parties.

 

Many consumers seek energy drinks and pre-workout beverages interchangeably. The ingredients in pre-workout drinks, however, do more for the body, while energy drinks focus on stimulating the brain. A primary differentiator between the two types of beverages is the presence of amino acids in pre-workout drinks. Amino acids are the molecules that proteins are comprised of and pre-workout drinks harness the power of three common types. In 87% of pre-workout drinks on the market, beta-alanine is frequently infused to better stamina, and by aiding muscle efficiency, strength. An ingredient in 71% of pre-workout beverages, citrulline targets endurance, keeping you active for longer by prolonging and stabilizing energy. Lastly, taurine is in 51% of pre-workout drinks, and protects against cell damage and injury, acting as an important preventative measure to ensure you get the most out of each workout. 

In Conclusion

Turn to energy drinks to fuel your workout, start the day, or counter mid-day slumps, and join the surge in popularity to recharge.

Brian Wallace is the Founder and President of NowSourcing, an industry leading content marketing agency that makes the world's ideas simple, visual, and influential. Brian has been named a Google Small Business Advisor for 2016-present and joined the SXSW Advisory Board in 2019-present.

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