Why Consumers Are Gravitating Toward Energy Drinks
Just in time for summer, energy drink brand C4 Energy, a brand of Austin, Texas-based Nutrabolt, has teamed up with Creamsicle for a seasonal flavor available exclusively at 7-Eleven stores across the country. Powered by 200 milligrams of caffeine and CarnoSyn Beta-Alanine, C4 Energy x Creamsicle offers a sweet tangy orange taste with a frosty vanilla finish reminiscent of the famous frozen treat. Knowing that 70% of Creamsicle buyers are also energy drink consumers, C4 Energy inked an official license deal with Good Humor and Unilever to create the limited-time beverage.
To mark the collaboration launch with Creamsicle, C4 Energy is holding a summer-long program with rapper and actor Ludacris, evoking 7-Eleven’s car culture and getting the word out about this latest product offering.
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As can be seen by the rollout of a fun new flavor at one of the biggest retailers in the nation — No. 24 on The PG 100 — the U.S. energy drink market is on the upswing. According to Dublin, Ireland-based Research and Markets, it’s expected to reach $36.71 billion by 2028, from $23.2 billion in 2022, increasing at a compound annual growth rate of 8.1%. This surge is driven by several factors, the market research firm notes, among them the introduction of a variety of options such as sugar-free, natural and organic, which has helped diversify product offerings and kept consumers interested in such beverages.
“The category has seen new entrants featuring perceived better-for-you (healthier) options [and] cleaner ingredient decks, as well as additional sugar-free options,” agrees Jeff Sigouin, president and COO of Farmington Hills, Mich.-based Living Essentials, the maker of 5-hour ENERGY beverages. “Unlike many brands that have added new sugar-free options, all 5-hour ENERGY product variants have always been sugar-free.”
The Sugar-Free Space
Speaking of which, 5-Hour ENERGY, the leader in the 2-ounce energy shot segment, has rolled out a refreshed lineup of its 16-ounce energy drinks that provides the same level of energy as the shots. “We made the designs on these cans bolder, enhanced our classic fan-favorite flavors and introduced two new flavors to the lineup,” Rainbow Sherbet, a combination of orange and lemon-lime flavors, and Raspberry Razz, says Sigouin of the refresh, which coincides with the brand’s 20th anniversary. “The 16-ounce beverages are sugar-free, [have] zero calories, and contain our proprietary blend of vitamins and taurine.”
Meanwhile, Santa Monica, Calif.-based Red Bull has expanded its zero-sugar portfolio with two additional flavors: Red Bull Red Edition Sugarfree, with the taste of watermelon, and Red Bull Amber Edition Sugarfree, with the taste of strawberry apricot, have joined original Red Bull Sugarfree and Red Bull Zero. Both new flavors come in 8.4-fluid-ounce and 12-fluid-ounce single-serve cans or in a 4-pack. The brand has enlisted college basketball star MiLaysia Fulwiley, guard for the South Carolina Gamecocks, to promote the additional beverages.
This focus on sugar-free products partly reflects a desire on the part of manufacturers to appeal more to women in what Sigouin admits is a “largely male-dominated category.” Case in point: Boca Raton, Fla.-based Gorgie, a female-founded beverage brand asserting that “the energy drink aisle no longer needs to be masculine, negatively [perceived] or dark.” The zero-sugar product line is vegan, gluten-free, and has no artificial preservatives, sweeteners, colors and flavors while containing L-theanine, biotin, and B6 and B12 vitamins — Gorgie comes in Paradise Punch, Watermelon Crush, Mango Tango, Peach Tea and Citrus Burst flavors.
“We will undoubtedly see more launches that appeal to female consumers in the future,” predicts Sigouin.
Functionality Facts
In regard to emerging energy drink products, Sigouin notes, “There have also been functional additions such as focus, hydration and pre-workout formulations.”
One of example of this is Odyssey — free from added sugar, preservatives, artificial flavors or sweeteners — which has recently introduced a new product line, 222, named for the milligrams of caffeine it contains. In addition to natural caffeine from green tea, the 222 beverages offer a whopping 2,750-milligram blend of lion’s mane and cordyceps to support sustained energy and mood. The product line consists of Blue Raspberry, Cherry Lime, Strawberry Watermelon and Pineapple Mango flavors, each made with real fruit juice concentrate and naturally sweetened. The Fort Lauderdale, Fla.-based brand also offers zero-caffeine options with its Revive line.
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For its part, 5-Hour ENERGY has launched a pre-workout shot, SPORT, which is available online and will be tested in select retailers later this year. The beverage contains CitraPeak, naturally derived from orange peels, to help athletes get the most out of their workout.
In the Big League
As energy drinks increase in sales and visibility, major sponsorship opportunities beckon. For instance, Rockstar Energy Drink, a brand of Purchase, N.Y.-based PepsiCo, was tapped to take part in a multiyear sponsorship of Leagues Cup, the official World Cup-style tournament featuring all 47 clubs from Major League Soccer (MLS) and LIGA MX, along with the Lay’s, Sabritas and Gamesa brands from Frito-Lay, the convenient foods division of PepsiCo.
The sponsorship encompasses exclusive Lay’s packaging, in-stadium experiences, Leagues Cup displays and a consumer sweepstakes for the chance to win tickets to matches across the country, as well as the grand prize of a trip and tickets to the Leagues Cup 2024 final on Aug. 25.
Future Energy
Regarding what’s next on the horizon for energy drinks, 5-Hour Energy, for one, is “currently launching new shots to cater to the gaming community, which are available online and will be in stores this fall,” says Sigouin.
“Energy products will continue to grow for the foreseeable future,” he asserts, “and the lines that separate energy drinks from other beverage categories will continue to blur.”
