Energy Drinks Are Bigger Than Ever
Energy drinks have been around for a long time, but these days, they’re bigger than ever. According to Chicago-based market research firm Mintel, the U.S. energy drink market, estimated at $23.9 billion in 2024, is poised for further growth over the next five years, driven by flavor innovation, an increasing number of better-for-you options, and expanding consumer demographics.
Manufacturers concur with these findings.
“Today’s energy drink consumers are seeking beverages made with better-for-you ingredients that align with a health-conscious lifestyle,” affirms Kyle Thomas, global chief commercial officer at Austin, Texas-based Nutrabolt, parent company of the C4 Energy, Cellucor and XTEND brands. “As wellness becomes more integrated into daily routines, they’re moving away from artificial flavors and additives and instead looking for products that offer functional benefits like enhanced hydration, improved mental clarity and gut health support. These are the attributes that matter most to the modern consumer.”
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Notes Prabha Cheemalapati, VP of beverage at V8, a brand of Camden, N.J.-based Campbell’s Co. and maker of V8 Energy beverages, “Consumers are looking for energy drinks that provide both physical and mental energy, without having to compromise taste or convenience.”
“Consumers today are seeking energy that fits into their daily routines – whether it’s first thing in the morning or an afternoon pick-me-up,” observes Amy Pagels, SVP of marketing at The Jel Sert Co., the West Chicago, Ill.-based business whose Pure Kick hydration drink mix was recently named a 2025 Progressive Grocer Editors’ Pick. “Additionally, we’re seeing that taste matters more than ever. There’s a real demand for flavor-forward, functional fusions.”
Caffeine and More
One key ingredient in energy drinks is caffeine, but today’s offerings are endeavoring to provide a healthier boost.
“We’re seeing stronger growth [in] products offering caffeine from natural sources, lower or no sugar, and moderated levels of caffeine,” says Cheemalapati, who points out that “additional functional benefits, reduced sugar and more natural caffeine sources … provide steadier energy and support other areas of life, such as focus.”
“Some energy brands contain as much as 200 milligrams of caffeine in their products, while we see the sweet spot being 80 milligrams to 120 milligrams of caffeine,” notes Pagels, adding that rather than “leaning on high caffeine counts,” Jel Sert prefers to create “flavor-first products with functionality” through partnerships with Jolly Rancher and Jamba, and tropical fusions like Mango Açaí.
Cleaner energy sources include green tea extract and guarana, which she asserts “are gaining popularity as consumers seek cleaner ingredients, transparency and a balance of benefits.”
Beyond caffeine, Thomas cites the following: “Two hot-ticket items are protein and gut-healthy ingredients like pro- and prebiotics. Protein has certainly been a topic for some time now, but we’re seeing consumers are increasingly drawn to options that deliver both the benefits and great taste. It’s the same with gut-healthy ingredients.”
Further, according to Pagels: “We’re seeing increased interest in products without color, or those using natural color and functional benefits that can be stacked, such as energy plus hydration. It’s about giving consumers options that feel personalized and purpose-built across every part of their day.”
Standing Out, On and Off the Shelf
Of course, it’s not enough to offer the clean-ingredient decks and trending flavors that consumers crave – brands and retailers also have to get shoppers to try the products in the first place and then keep on buying them.
“We have found that the presence of singles [cans] drives trial, and [limited-time-offer] flavors have also been very successful for us” at retailers such as Meijer and Walmart, notes Cheemalapati.
Establishing an in-store presence doesn’t end at the shelf, however.
“Our retail partners are helping us amplify our approach with dynamic off-shelf displays, exclusive promotions and lifestyle tie-ins, such as gaming, where we’re drawing new consumers into the category,” says Pagels. “It’s not about following the category. It’s about reshaping it around what people want.”
She adds: “Off-shelf placement is everything. Ideally, brands can create something eye-catching, accessible and backed by shopper insights. Our Pure Kick Forza displays at Family Dollar and Dollar General are doing really well. We leaned into lifestyle integrations with a gaming promotion that brings energy products into real cultural moments. By offering exclusive shopper deals tied to relevant passion points, we’re not just selling products, we’re helping to bring new customers into the category.”
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Additionally, when it comes to marketing and merchandising, the outside can be just as important as what’s inside.
“Showcasing our incredible flavor profiles in eye-catching packaging is a must,” emphasizes Thomas. “Beyond that, we really strive to reinforce our credibility, be it our NSF Certified for Sport certification or our professional partners, such as Bijan Robinson and Saquon Barkley. By showcasing recognizable faces consumers trust, it reinforces our expertise in the category and ensures retail partners and consumers alike feel comfortable reaching for any of our products.”
Future Energy
What will the energy drink industry serve up in the next few years?
“I was recently at a conference in New York City and noticed several key themes shaping the future of the energy drink category,” says Thomas. “Many brands are leaning into hydration and electrolytes, as well as global-inspired flavors like mango. There’s also a growing presence of beverages infused with functional ingredients like adaptogens. Across the board, convenience and affordability continue to be major priorities for brands looking to meet evolving consumer expectations.”
“We’re going to see more functional stacking – energy plus hydration, plus immunity, plus protein,” predicts Pagels. “It’s a move toward personalization by daypart, where people are choosing products that serve very specific needs at different times of day.”
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She adds: “Flavors will continue to evolve, too, with more adventurous profiles and less reliance on synthetic dyes. Our team is focused on meeting that future now, with smart innovation, accessible price points, and bold product experiences that don’t sacrifice flavor, function or value.”
“V8 Energy is continuing to innovate by introducing bold new flavors and formats that meet evolving consumer interests,” notes Cheemalapati. “Our limited-time-offer strategy has been a major success, giving us the opportunity to introduce trend-forward seasonal flavors like this summer’s Tropical edition, Passionfruit Orange Guava.”
She continues: “Looking ahead, we’re expanding into high-level platforms that go beyond the traditional ready-to-drink space. Just [recently], we launched V8 Energy Drink Mix in three refreshing flavors: Peach Mango, Strawberry Lemonade and Pomegranate Blueberry. This convenient powder format is gaining momentum as more consumers seek customizable energy options. And while we can’t give away all our secrets, you can definitely expect more exciting launches to come.”
In fact, regarding V8’s work on energy drink products, Cheemalapati asserts, “We’re just getting started.”
