December 10, 2024 – In the US and Canada, energy drinks are favored for a quick boost of energy and indulgence. This trend is driven by the demands of fast-paced lifestyles and a growing interest in functional beverages. Innova’s 360-degree research into energy drinks industry trends highlights the latest product launches, market insights, top brands, flavors, and what may develop in the future.
Energy Drinks Sales Trends
North America leads the energy drinks industry in sales value over the past year, driven by a focus on energy and alertness claims supported by functional ingredients. Nearly 1 in 2 consumers in the US and Canada show interest in caffeine in energy drinks with components like taurine, ketones, and adaptogens for sustained energy and mental clarity.
With 2 in 7 consumers prioritizing health prevention, low/no/reduced sugar claims significantly influence purchasing decisions. Notably, options made with natural sweeteners and calorie-free selections raise consumer awareness, enabling informed decision-making before purchases. This aligns with Innova’s annual top trend of 2024, ‘Prioritizing Prevention,’ which highlights consumers are increasingly choosing products that promote well-being due to a growing emphasis on preventive care.
Energy Drinks Product Launch Trends
Energy drink subcategory launches show a fluctuating trend, with a significant rise in 2023. In the US and Canada, 29% of consumers actively check ingredients and labels, driving demand for products featuring clear, functional claims. Meanwhile, energy drinks trends with active health claims have experienced 3% CAGR growth over the past four years. This reflects Innova’s annual top trend of 2024, ‘Ingredients: Taking the Spotlight,’ with launches highlighting functional ingredients like electrolytes, vitamins, minerals, and protein on the pack are likely to maintain consumer interest.
Energy drinks industry accounts for an average of 7% of launches in the soft drinks category in the region. The US leads with a gradual increase in launches over the past four years. Seasonal and limited-edition claims are growing at a 12% CAGR, which also captures attention. Special launches, such as the 2024 Red Bull Racing can and seasonal ranges for winter and summer, are preferred among consumers, combining exclusivity and appeal.
Top Brands and Companies
Celsius is the market leader in energy drinks launches in the US and Canada over the past year. Celsius stands out in the US energy drinks industry with its strong focus on scientific validation and proven effectiveness. It is supported by six published studies; it showcases thermogenic properties that boost metabolism, helping users burn more calories and fat during workouts. Its MetaPlus blend activates thermogenesis, enhancing endurance and reducing fatigue. By offering these benefits, the company becomes a trusted partner for anyone looking to elevate their fitness journey.
PepsiCo, Monster Beverage, Red Bull, and Zoa Energy are the other notable companies in the market. These top 5 companies account for 24% of launches in the US and Canada over the past year.
Claims and Positionings Trends
Sugar-free, vegan, low/no/reduced calorie, gluten-free, and no additives or preservatives are the top five positionings in energy drinks subcategory launches in the US and Canada. The sugar-free claim leads in both the US and Canada. Apart from the top five positionings, other positionings growing across the US are brain health, GMO-free, and limited edition. Meanwhile, the organic claim is gaining attention in Canada.
Energy Drinks Flavor Trends
Taste and flavor drive energy drink purchases for over half of consumers, with fruit flavors displaying 82% of launches in the past year. This is reflected in the fruit flavor category accounting for 82% of launches over the past year. Mango, strawberry, watermelon, orange, and berry are the top 5 flavors in the market.
Apart from the top 5 flavors, mushroom, passion fruit, peach, grapefruit, and red raspberry flavors are gaining significance in the market.
What’s Next in the Energy Drinks Market Trends in the US & Canada?
The energy drinks industry in the United States increasingly emphasizes hydration and focus, with hydration-related claims making up 14% of launches. Blends featuring electrolytes, L-theanine, and amino acids drive innovation by supporting hydration, cognitive function, and physical performance. This aligns with Innova’s other top trend of 2024, ‘H2.O: Quenching the Future,’ where hydration products are enhanced by health benefits and innovative endorsements.
In the US and Canada, 23% of consumers prefer energy drinks trends with added health benefits. Protein-rich options and sugar-related claims, such as sugar-free, no added sugar, and low-calorie, reflect the growing demand for health-conscious and transparent choices. Brands can cater to this shift by developing products with healthful ingredients that appeal to health-conscious consumers.
Additionally, combinations like mango and peach, strawberry and watermelon, and banana and strawberry enrich flavor diversity and add further significance. As consumers seek a balance between health and taste, brands that innovate with functional ingredients and creative flavors are likely to lead in the market.
This article is based on Innova’s Overview in Energy Drinks in the US & Canada report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
