The energy drinks market - United States

1.2 A growing global market

Size of the energy drinks market World, ****-****, in billion dollars CAGR: +*.*% Source: ****

The global energy drinks market was valued at USD **.** billion in **** and is expected to reach USD ***.** billion by ***** This equates to a CAGR of *.*% between **** and ****. There are several reasons for this growth: firstly, energy drinks offer an immediate energy boost, which is often more energizing than coffee. For example, a guarana bean (***) contains twice as much caffeine as a coffee bean. Secondly, incumbent companies can take advantage of societal health trends by offering energy drinks with more perceived health benefits, such as sugar-free products. Finally, the presence of giants such as Red Bull and Monster at various events around the world will continue, leading to greater consumption among younger consumers.

North America had the largest market share in ****, which was **%. Asia Pacific is the market that is expected to grow the most over the period **** to ****. The market is expected to grow considerably in the economies of China, India and Japan due to consumers' willingness to experiment with new flavours and high demand from immigrants residing in the country, who show an interest in a variety of beverages. Product launches in the region to target and ...

1.3 The US-American market is growing strongly

From **** to ****, the energy drink market in the United States experienced significant growth, showcasing the increasing demand for these beverages among consumers. Over this five-year period, energy drink sales rose steadily, ultimately reaching billions of U.S. dollars in annual revenue. This upward trend can be attributed to a variety of factors, including aggressive marketing campaigns, innovative product developments, and the overall shift in consumer preferences towards alternative sources of caffeine and energy boosts. As people continue to lead busier lifestyles and seek convenient ways to stay energized, the energy drink industry is anticipated to maintain its strong presence in the U.S. market.

Energy drink sales United States, **** - ****, in billion U.S. dollars Source: ****

1.4 Global Trade

According to Volza, the United States has a significant demand for energy drinks. These imports are brought in by *** American importers, who source their products from *** suppliers located across the globe. Germany, Guatemala, and Belgium are the top three countries from which the United States imports most of its energy drinks. 

Energy drink imports in the United States can be categorized into three main product categories, based on their HSN codes. These are:

HSN Code ******: This category includes energy drinks containing a significant amount of caffeine and other stimulants. HSN Code ******: This category encompasses energy drinks that may not contain caffeine but still provide energy-boosting effects through other ingredients. HSN Code ******: This category covers miscellaneous energy drink products that do not fall under the previous two classifications.

United States the second-largest importer of energy drinks in the world United States, ****, amount of shipments Source: ****

The United States imports energy drinks from various countries across the globe. Some of the major suppliers include Mexico, Austria, Germany, the Netherlands, Thailand, and the United Kingdom. These countries provide a diverse range of energy drinks, catering to the tastes and preferences of the American market.

In return, the United States exports energy drinks to several ...

2.1 Energy drinks are not the most preferred drinks

Beverage Consumption Statistics

When it comes to beverage consumption, it is interesting to see the different preferences among individuals. In a recent survey, the following percentages were recorded for various beverage categories:

Bottled Water: **.*% of the participants preferred bottled water, making it the most popular choice among the beverages. Hot Tea/Coffee: **.*% of the individuals enjoyed a steaming cup of tea or coffee, indicating its popularity as a morning and evening drink. Carbonated Soft Drinks (***): **.*% of the participants opted for CSDs, showing that people still have a soft spot for fizzy drinks. Juice: **.*% of the respondents preferred fruit juices, highlighting the appeal of natural and refreshing drinks. Milk/Dairy Products: **.*% of the individuals chose milk and dairy products, emphasizing the importance of calcium-rich drinks. Sports Drinks: **.*% of the participants opted for sports drinks, demonstrating their popularity among fitness enthusiasts. Ready-to-Drink Tea/Coffee: **.*% of the individuals preferred RTD tea or coffee, indicating its convenience as an on-the-go drink. Energy Drinks: *.*% of the respondents opted for energy drinks, showing their appeal to individuals seeking an energy boost. All Other Beverages: *.*% of the participants chose other beverages, highlighting the diverse range of drink options available. None: Interestingly, *.*% of the individuals did not prefer any ...

2.2 Consumption of Energy drinks in the U.S.A.

In recent years, energy drinks have gained significant popularity among various age groups, particularly young adults. Additionally, a notable trend has emerged regarding the consumption of these beverages, with more men drinking energy drinks than women. This disparity is quite evident, with a difference of **.* percentage points between the two genders.

Consumption of Energy drinks by females United States, ****, in % Source: ****

    Consumption of Energy drinks by males United States, ****, in % Source: ResearchGate There could be several reasons behind this phenomenon. One possible explanation is that energy drinks are often marketed towards men, with advertisements frequently depicting male athletes or action-packed scenarios. This targeted marketing approach may lead men to perceive energy drinks as a product designed specifically for them, thus resulting in higher consumption rates among males.

Another potential factor contributing to this gender gap in energy drink consumption is the difference in taste preferences. Some studies have suggested that men tend to prefer strong, bold flavors, which are often found in energy drinks. Women, on the other hand, might be more inclined towards milder or sweeter beverages, which could explain the lower consumption rates among females.

Additionally, societal norms and expectations might also play a role in this disparity. Men ...

2.3 Potential for the market

A potential market could be older generations, as currently, younger generations are primarily targeted for Energy Drinks, but caffeine consumption increases with age. While young people often rely on energy drinks and caffeinated beverages to boost their energy levels, older individuals might also be interested in such products due to increased energy needs or the desire for mental alertness and concentration. There is, therefore, potential to expand the focus to older demographics and offer products specifically tailored to their needs and preferences. However, potential health effects and individual tolerances should also be considered, as older individuals may be more sensitive to certain ingredients.

Percentage of Age Groups that consume Caffeine United States, ****, in % Source: ****

According to the U.S. Energy Drink Industry Report, the industry should consider launching new products with taste preferences that appeal to different generations, such as milder flavors for older consumers. Packaging should also be subtle and neutral to attract a wider range of consumers and make energy drinks more suitable for professional settings. Furthermore, sponsoring events targeted at these new age demographics, such as concerts, corporate events, and fashion events, would help expand the industry's reach and provide opportunities for product sampling. By entering these markets ...

3.1 Value chain & Distribution channels

The value chain of energy drinks involves various stages, from production to consumption. Each step adds value to the final product, ensuring quality and efficiency.

Source: ****

Energy and Monster Energy are two prominent energy drink brands that utilize various distribution channels to reach their target customers. In the United States, both companies rely heavily on full-service distributors to make their products available in various retail outlets. Between **** and ****, the number of U.S. full-service distributors for these brands slightly decreased from ** to **.

On the international front, both Energy and Monster Energy have expanded their presence by partnering with full-service bottlers and distributors. The number of international partners has grown from ** in **** to ** in ****, highlighting the brands' global expansion efforts.

In addition to full-service distributors, Energy and Monster Energy sell their products through club stores, drug chains, and mass merchandisers. However, these outlets have slightly decreased from ** in **** to * in ****. Furthermore, retail grocery, specialty chains, and wholesalers have become less prominent as distribution channels for these energy drinks, with their numbers dropping from * in **** to just * in ****.

Lastly, other distribution channels, such as online sales and vending machines, remain relatively marginal in the overall distribution strategy for Energy and Monster Energy, with ...

3.2 Red Bull market leader, Monster is constantly growing

Red Bull, the leading brand in the energy drink market, holds a strong position with a **.*% market share. The Austrian company has created a unique brand image and has become synonymous with energy drinks worldwide.

Monster, an American energy drink company, is the second most prominent player in the market, with a **.*% market share. Monster has steadily grown over the years and is known for its aggressive marketing strategies and diverse product offerings.

VPX, another American company, has managed to carve out a niche for itself with an *.*% market share. VPX focuses on providing performance-enhancing energy drinks, targeting fitness enthusiasts and athletes.

With a *.*% market share, Rockstar is yet another American brand in the energy drink market. Rockstar has differentiated itself from competitors by associating its brand with music and extreme sports.

Market share of the leading energy drink brands United States, ****, in % Source: ****

In recent years, the number of employees at the US company Monster has increased significantly. This increase reflects Monster's growth and success in the energy drink market. Besides that, the growth is an indication of the growth of the energy drink market.

Number of Monster Beverage employees worldwide Worldwide, **** - ****, total number Source: ****

3.3 Risk factors

The National Library of Medicine in the USA dealt with the influence that energy drinks have on its consumers. 

The study identified several risks associated with energy drink consumption among adolescents. These risks can have an influence on the market for energy drinks and its manufacturers. Here is a summary of the risks mentioned in the text:

Emotional and behavioral problems: The study found a significant association between energy drink consumption and emotional and behavioral problems in adolescents. Higher consumption of energy drinks was linked to more emotional and behavioral problems. Caffeine intake: Energy drinks contain high amounts of caffeine, which can exceed safe limits. Excessive caffeine consumption can have negative effects on physical and mental health, including depression, stress, anxiety, and self-destructive behavior. Unhealthy dietary habits: High energy drink intake was associated with unhealthy behaviors, such as reduced and insufficient sleep and skipping breakfast. Adolescents who consumed energy drinks were more likely to have inadequate sleep duration and to skip breakfast. Sleep problems: Many adolescents already sleep less than the recommended * hours, and energy drink consumption further exacerbates this issue. Insufficient sleep duration and poor sleep quality have been linked to increased emotional and behavioral problems. Breakfast omission: Breakfast skipping ...

4.1 A concentrated market dominated by big brands in particular

The market for energy drinks is a highly concentrated one, with only a few companies operating on a global scale. Despite the limited number of players in the industry, these companies have managed to establish a strong presence and capture significant market shares.

The largest companies in the energy drinks market include Red Bull, followed by Monster, VPX, Rockstar and Reign. These companies have managed to dominate the industry through aggressive marketing strategies, innovative product development, and efficient distribution networks (***).

The average profit margin for the energy drinks industry is **.*%, which is quite lucrative considering the market's competitive nature. This high profitability can be attributed to the companies' ability to charge premium prices for their products and their focus on cost reduction through economies of scale and efficient supply chain management.

There are a total of ** businesses operating in the energy drinks industry. This relatively small number of players highlights the high barriers to entry in the market, which can be attributed to the significant capital investments required for production and distribution and the strong brand loyalty among consumers.

The energy drinks industry is currently in a growth phase but is approaching maturity. This means that while the market is still ...

4.2 High sugar content varies according to brand

The high sugar content in energy drinks can vary significantly depending on the specific brand.

Source: ****

Monster Energy, Energise Edge, and Lucozade Energy Caribbean Crush contain the highest levels of sugar per serving at ** grams, ** grams, and ** grams respectively, while Monster Rehab, Bolt, and Lucozade Energy Cloudy Lemonade have the lowest sugar content with **.*, **.*, and ** grams per serving.

4.3 Trend Produkt Energy shots

In recent years, energy shots have become a popular trend among consumers seeking a quick and convenient energy boost. Several companies have entered the market, offering a wide variety of energy shots to cater to different tastes and preferences. The overall revenue for energy shots has reached an impressive ***.** million USD, indicating the growing demand for these products. As the market continues to expand, it will be interesting to see how energy shots evolve and what new innovations will emerge in this competitive space.

Source: ****

5.1 Regulations

In the United States, there is growing concern about energy drink consumption and its impact on health, leading to discussions and potential legislation regarding the sale and regulation of caffeine. While caffeine is currently regulated in soda beverages, energy drinks have been marketed as dietary supplements, allowing them to bypass certain labeling and caffeine content restrictions. The U.K. has already implemented a ban on energy drink sales to children under **, while the U.S. FDA has yet to make a definitive decision on caffeinated non-cola products. It is expected that any future regulations in the U.S. regarding caffeine sales will likely be less strict compared to the U.K.'s bans.

The key regulations for energy drinks according to Shumaker, a provider of legal and legislative services, are as follows:

Advertising Restrictions: Energy drink advertising must not contain false or misleading information and should not make unsupported health claims. Labeling Requirements: Energy drink packaging must include certain information such as the product name, manufacturer, ingredients, caffeine content, and warnings for specific populations such as children, pregnant women, or individuals sensitive to caffeine. Sales Restrictions: Energy drinks may be subject to age restrictions, depending on the laws and regulations of ...

6.1 Positioning of the players

• VPX (Vital Pharmaceuticals)
• Boost Drinks