With more products entering the market, the business of the energy drinks industry is booming. Popularity is driven by a number of factors. Consumer preferences and targeting new markets expands the reach and wealth of the sector. With more and more people continually investing in the instant energy these drinks provide. The future of the energy and sports drink industry is as awakened financially as its customers.
How Big is the Energy Drink Market?
Energy drink sales grew 12.6% in 2021 alone. With a total of $14 billion (USD) in energy drink sales, the industry value continues to grow last year. This sum is up from the industry total of $11 billion (USD) in 2017 – a difference that reveals astounding annual growth in addition to last year’s notable month-to-month growth in sales.
The top three selling energy drink brands for 2021, in descending order, were Red Bull, Monster Energy, and Bang Energy. Bringing in $3.26 billion (USD), and accounting for one-fourth of the global energy drink’s total revenue, Red Bull was the leading energy beverage brand last year. Its two extension brands, Red Bull Sugarfree and Red Bull Editions, taking fourth and fifth place respectively. Monster Energy almost matched Red Bull’s success, with an annual revenue of $3.23 billion (USD), taking second place. Lastly, Bang Energy brought in $1.2 billion (USD), reflecting a statistically significant 6.6% growth in sales last year alone.
Although there are also promising newcomers on the market such as Delta 8 Seltzers that contain novel ingredients such as delta 8 THC. A strain of marijuana, that is believed to encourage focus while also promoting calm.
Energy Shots are Declining
In a fiscal climb, energy drinks are savoring unprecedented success while energy shots are dwelling in an unprecedented low. The year 2021 saw energy shot sales totaled $824 million (USD). This reflected a 16% decline in sales from the previous year when energy shot sales reached $978 million (USD). 5-Hour Energy remains the most successful energy shot brand, with the company accounting for 88% of the industry market share. Reduced convenience store runs and situations that require impulsive energy boosts declined since the COVID-19 pandemic. These were two primary factors for the decline.
Pandemic stay-at-home orders kept consumers from purchasing energy drinks. Convenience stores are a primary source of revenue for energy beverage brands. A sales venue that accounts for 10% of bottled water sales, 10% of sports drink sales. Additionally, 27% of carbonated beverage sales, and 31% of energy drink sales, lockdown mandates kept customers away from this primary sales channel, and as a result, revenue away from energy drink brands. Post-lockdown gym reopenings, however, helped energy drink brands rise from the ashes, as sales skyrocketed and people eagerly enjoyed the world’s reopening.
Energy Drinks and the eSports Market
Energy drinks have recently found new financial fertility via the eSports industry. Gamers turn to caffeine to enhance their cognition, accelerate response time, maintain alertness, and ward off any fatigue, stabilizing their performance. Energy drinks have a market value of $1.8 billion (USD) in 2022 and 31.4 million eSports viewers each month. Brands find more relevance and expand brand loyalty by sponsoring the most successful eSports teams. Energy beverage company G Fuel has a $410 million sponsorship contract with team TSM, Rockstar Energy has invested $190 million in 100 Thieves, and Monster Energy has a $310 million sponsorship with Team Liquid. As more energy drink brands join the collaborative eSports trend, both industries benefit.
Harness the business of energy drinks, an industry proving to be powerful, and profitable, and find your power as a result.