Why Energy Drinks Are Booming

The energy drinks industry is currently booming with analysts forecasting that global sales of energy and sports drinks will surpass $220 billion by 2026. In 2021 alone, sales increased by almost 13%. Red Bull and Monster Energy made up almost 50% of the market share. 

Although energy drink sales have increased recently, energy shots have taken a hit, possibly due to the consumption of energy shots tending to be an impulsive decision as well as the pandemic causing convenience stores and fitness facilities to close, impacting revenues. Still, they can make a comeback thanks to the world slowly transitioning to normalcy. 

The eSports and gaming industries are helping to bring more attention to the energy drink sector. Some of the biggest eSports teams have gained lucrative sponsorships from energy drink companies. Energy drinks are successfully marketed to gamers and eSports players due to their performance-enhancing properties like boosting cognition and improving reaction times, which allow players to maintain peak gaming performance. 

Sales of pre-workout supplements have been on the rise, but how do they differ from energy drinks? The main difference between them is essentially their purpose. Energy drinks provide a more rapid energy boost by giving consumers a dose of caffeine and other fast-acting ingredients. Pre-workouts are instead designed to boost your energy levels while also promoting better athletic performance. 

In terms of ingredients, pre-workouts contain a combination of energy and performance-boosting ingredients. 86% of pre-workouts contain caffeine, which helps improve cognitive function and memory, physical endurance, metabolism, and information processing. Amino acids like beta-alanine and citrulline are also included. Creatine, a natural substance found in muscle cells, is added as well for enhancing strength, muscle mass, and exercise performance. 

In the U.S., two in three energy drink consumers are men between 13 and 35 years of age. Younger people are interested in the performance, endurance, and alertness enhancing properties of energy drinks as well as them being a possibly healthier choice compared to soda. Nonetheless, less than half of U.S. consumers actually consume energy drinks; loyal customers who buy energy drinks on a regular basis keep the market alive. 

New technological developments are helping energy drink companies with making their products more attractive to more consumers. Changes such as having a wider range of exotic flavors and hybrids of other beverage types as well as focusing on better quality and organic ingredients are just some of the advancements we can expect as consumers. 

Energy drinks are constantly evolving, allowing the industry to remain lucrative.

the business of energy drinks

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.