Press Release

United States Energy Drink Market to be Valued at USD21.01 Billion by 2026

The rise in per capita income and the growing awareness of the benefits of energy drinks like enhanced physical performance and mental alertness are expected to boost the demand for energy drinks in the United States.

According to TechSci Research report “United States Energy Drink Market By Product Type (Non-Organic & Organic), By Target Customers (Adults, Teenagers & Geriatric Population), By Distribution Channel (Store-Based & Non-Store Based), By Region, Competition, Forecast & Opportunities, 2026F, the United States energy drink market is forecast to grow at a rate of over 6.87% to reach USD21.01 billion by 2026. Energy drinks are expected to become one of the fastest-growing segments in the beverage industry. These drinks often contain five times the amount of caffeine like soft drinks and may also contain taurine, riboflavin, pyridoxine, and various herbal derivatives. One of the barriers to the growth of energy drinks is that the sugar content generally exceeds the recommended daily intake of sugar. As per various studies, the effects of energy drinks on behavior confirm that they increase alertness and attention, improve simulated driving when sleepy, and can reduce sleepiness in night workers.

 

The market growth is stimulated by various factors such as the growing popularity of energy drinks among consumers, increase in the disposable income of consumers which increases the purchasing power of the consumer. The demand for energy drinks in the projected period is likely to register good growth owing to the factors such as the increase in the working population and the need for a refreshing drink to remove fatigue among the people.

 

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During the COVID-19 pandemic, energy drink producers' net sales fell dramatically due to low consumer demand and inventory reductions by large corporations, including Monster Beverage. Furthermore, numerous product introductions have slowed, as the COVID-19 has hampered market growth devastatingly for the longer term. However, the energy drink industry has realized the increasing consciousness of working individuals and sports athletes towards diet and intakes to maintain the nutritional balance in their body, this situation has facilitated the manufacturers to promote the demand for energy drinks among adults in the forecast years.


Owing to growing awareness about the health benefits of herbal extracts, such as increased energy, alertness, attention, and mental performance, young consumers in the country are increasingly turning to energy drinks produced with herbal extracts. The leading companies are also concentrating on developing new energy drinks using organic herbal extracts, which is propelling the US energy drinks market even faster.

 

The United States energy drink market is segmented based on product type, target customers, distributional channel, and region. In terms of product type, the United States energy drinks market is segregated into non-organic and organic energy drinks. Out of these, the non-organic energy drink segment registered a market share of around 73% in 2020. Non-organic energy drink is dominating the market as it is easily approachable but organic energy drink is the fastest growing because, in the last five years, consumer preferences have shifted towards healthier, low-sugar, and clean-label beverages due to health concerns and rising cases of obesity and diabetes. As a part of this larger trend, consumers are embracing more plant-based beverages with the desire for more natural and environmentally sustainable products. In addition, consumers are seeking out beverages with reduced sugar and natural sweeteners, as well as beverages with immunity-boosting ingredients such as turmeric, ginger, antioxidants, vitamins, and probiotics.

 

The target customer segment is segmented into adults, teenagers, and geriatric population where adults dominate the market due to high want of energy boosters because of their busy schedule whereas, the teenagers are the fastest growing owing to high demand for flavored drinks. The distribution channel segment is divided into store-based and non-store-based, where store-based channel dominantly holds the market.

 

Some of the key players within this market are Monster Beverage Corporation, Red Bull North America, Inc., PepsiCo, Inc. (Gatorade), Nestlé USA, Inc. (Milo), Keurig Dr Pepper Inc. (Venom, Xyience Energy), The Coca Cola Company (Powerade), AriZona Beverages USA, LLC (Rx Energy), Campbell Soup Company (V8 Energy), National Beverage Corp. (Rip It), and Vital Pharmaceuticals, Inc. (VPX Bang). Product launches, mergers and acquisitions, joint ventures, and geographic growth are some of the primary strategies used by companies in the United States energy drinks market.

 

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“The concern of consumers towards a healthy lifestyle and staying fit is increasing the demand for energy drinks. In the United States, people are largely occupied in their busy work schedule, and to get a relief from their hectic lives, energy drinks play a significant role. It is also the city of Florida, Tampa which is named as the largest consumer of energy drinks within the United States.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

 

“United States Energy Drink Market By Product Type (Non-Organic Drink, Organic Drink), By Target Customers (Adults, Teenagers, Geriatric Population), By Distributional Channel (Store-Based, Non-Store Based) By Region Competition, Forecast & Opportunities, 2026”, has evaluated the future growth potential of energy drink in United States and provides statistics and information on market structure, size, share and future growth. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment decision. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities present in the United States energy drink market.

 

 

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Relevant Reports

United States Energy Drink Market By Product Type (Non-Organic & Organic), By Target Customers (Adults, Teenagers & Geriatric Population), By Distribution Channel (Store-Based & Non-Store Based), By Region, Competition, Forecast & Opportunities, 2026F

Consumer Goods and Retail | Nov, 2021

The rise in per capita income and the growing awareness for the benefits of energy drinks like enhanced physical performance and mental alertness are expected to boost the demand for energy drinks in the United States.

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