By: Zhane Isom | March 15, 2024
Energy Drinks will continue to thrive in 2024 as long as retailers keep innovation as a top priority.
The energy drink category finished 2023 off with a bang in terms of sales and is expected to continue thriving in 2024.
Dollar sales for energy drinks reached $14.1 billion, a 14.6% increase for the 52 weeks ending Dec. 31, 2023, according to Circana. Energy drink unit sales reached 4.67 billion, up 8.8% for the same period.
“Energy drinks have been one of the shining stars in refreshment beverages in recent years,” said Gary Hemphill, managing director of research for the Beverage Marketing Corp. “We expect solid volume growth of about 5% this year based on our preliminary projections. Dollar growth is likely to be even stronger.”
Red Bull, with $5.34 billion in dollar sales, up 9.3%, led the category, followed by Monster, with $3.85 billion, a 12.1% increase.
“I have observed a consistent growth trajectory in the energy drink market, with capacity expanding by approximately 9-10% annually,” noted Nicole Masullo, director of operations for Nittany Oil, which operates over 85 Minit Mart locations throughout six states.
Innovation is Essential
Energy drinks are mainly known and used to provide consumers with an energy boost to help them through the day. However, now, consumers are buying energy drinks for other reasons, including flavor, social media trends and health benefits.
Now that consumers want more from energy drinks, retailers need to start thinking outside the box when rearranging their offerings.
Hemphill mentioned that he has noticed innovation as one of the category’s key growth drivers and expects to see that continue through new flavors and various energy drink line extensions.
“Some trends in the energy drink category include a growing demand for healthier and natural ingredients and innovative flavors, such as the newest, hottest trend on TikTok or other social media outlets,” said
Masullo. “We have had several requests for new innovative products such as Rat Bastard and Prime.”
Aside from innovation, consumers are constantly seeking ways to reduce their spending costs when purchasing energy drinks since inflation is still causing price increases in some areas.
“Customers are seeking advantageous two-for-four deals,” noted Masullo. “Rather than making separate stops before and after work to purchase energy drinks, they now prefer consolidating both stops into a single trip.”
As 2024 continues, retailers need to home in more on innovation, whether it’s adding a new brand of energy drink or offering more flavor options to continue driving energy drink sales.
“My energy drink offerings typically consist of a two- to three-year set that embodies the latest trends from industry leaders such as Red Bull,” said Masullo. “We have plans to add more new items into our warm sets and work them into our cooler areas.”
Source: CStore Decisions