U.S. Energy Drinks Market Size, Share & Trends Analysis Report By Product (Alcoholic, Non-alcoholic), By Type (Organic), By End-use, By Distribution Channel, By Packaging, By Form, And Segment Forecasts, 2024 - 2030

U.S. Energy Drinks Market Size & Trends

“2030 U.S. Energy Drinks market value to reach USD 37.83 billion”

The U.S. energy drinks market size was estimated at 23.41 billion in 2023 and is expected to grow at a CAGR of 7.1% from 2024 to 2030. The increasing demand for energy drinks among male consumers aged 18-34 has primarily driven the market. Consumers prefer these drinks as potential enhancers of both physical and cognitive performance. Beverages that are free from high sugar, glucose, and fructose corn syrups have gained popularity among health-conscious consumers. This has further led market players to actively promote these drinks as functional beverages that enhance energy levels, alertness, and overall physical vitality.

Moreover, the rising demand for natural and organic ingredients has significantly impacted the U.S. energy drinks market due to health and well-being concerns. Consumers are increasingly seeking healthier alternative products offering transparency and sustainability in beverage production. This shift in consumer preferences has prompted energy drink manufacturers to reformulate their products using natural and organic ingredients, including fruit extracts, natural sweeteners such as stevia, and other organic sources of caffeine. Additionally, the belief that natural and organic components offer superior nutritional benefits without synthetic additives fuels the product demand.

Furthermore, millennials and consumers owing to their fast-paced lifestyles drive the market.  Energy drinks with high caffeine content and quick energy boosts align well with modern lifestyles. Moreover, the health-conscious younger population is driving dynamic shifts in the energy drinks market. This has led manufacturers to offer low-sugar or sugar-free options, incorporating natural ingredients, vitamins, and antioxidants. In addition, energy drink makers are increasingly leveraging social media channels to reach their target audience effectively. These channels play a significant role in shaping consumer preferences and building brand loyalty, particularly among the age group between 18-40.

However, health-related challenges have significantly impacted the U.S. energy drink industry, affecting consumer perceptions, regulatory oversight, and overall market growth. The consumption of energy drinks has raised concerns due to their elevated caffeine content, added sugars, and potential risks associated with other chemical components. This has further led health authorities and regulatory bodies to focus more on issues related to energy drink consumption, including adverse effects such as heightened heart rate, elevated blood pressure, and potential links to cardiovascular events.

Product Insights

The alcoholic product segment is expected to witness growth at 8.0% CAGR.

Non-alcoholic energy drinks have led the market with a dominant share of 63.1% during the forecast period. This trend is driven by consumers’ busy lifestyles and their preference for convenient yet healthy beverage options. As health-conscious individuals seek on-the-go beverages, the demand for non-alcoholic energy drinks continues to rise. Consumers are increasingly inclined towards non-alcoholic functional energy drinks infused with nutritious ingredients including minerals, amino acids, vitamins, and others that help immune health.  Notably, major players like Nestlé S.A., Pepsi Co., and others have strategically expanded their product portfolios. For instance, in January 2023, Nestlé S.A. invested USD 43 billion in its U.S. plant, aiming to enhance the capacity of its Boost and Carnation essentials ready-to-drink products and meet the surging demand for energy beverages.

The alcoholic energy drink segment is expected to grow substantially during the forecast period. The increasing popularity of craft alcoholic beverages is a significant market driver. There is a rising demand for unique, high-quality drinks beyond mass-produced options. The growing number of craft breweries and distill0eries that offer innovative flavors, small-batch production, and personalized experiences further attract discerning consumers, leading to market growth. Furthermore, the expanding sales channels including online stores and convenience stores attract young consumers who favor these portable yet convenient alcoholic energy drinks.

Type Insights

Organic energy drinks are projected to witness growth at 9.2% CAGR.

The non-organic energy drinks market dominated the revenue share with 91.9% in 2023. This growth can be credited to the rising demand for health-conscious consumers who seek non-organic energy drinks. Despite their additives, these drinks incorporate functional ingredients, including amino acids, adaptogens, and herbal extracts, including ginseng, guarana, and taurine. These additions enhance flavor profiles while offering potential health benefits. Moreover, to meet the growing consumer demand for personalization, brands are increasingly experimenting with unique flavors to appeal to consumers’ taste preferences.

The organic energy drinks segment is expected to emerge as the fastest-growing segment over the forecast period. Such growth can be attributed to the rising number of health-conscious consumers as organic energy drinks align with their preference for cleaner, natural ingredients. Organic energy drinks avoid synthetic additives, artificial sweeteners, and pesticides. With ingredients including elderberry, ginger, and hibiscus, adaptogens including ginseng, and natural sweeteners such as honey and agave, manufacturers expand the organic energy drinks market with novelty flavor profiles. Moreover, these drinks are packaged with highlighted certifications such as USDA Organic to guarantee quality and eco-conscious production. These further fuel market growth.  

End-use Insights

Teenagers & kids are expected to boost the U.S. energy drinks market at 7.0% CAGR.

Based on end-use, adults dominated the market with over 51.0% share in 2023 owing to the increasing work population. As professionals juggle demanding work schedules, they seek quick energy boosts to stay productive, combat fatigue, and maintain mental alertness. Adult athletes, gym-goers, and fitness enthusiasts have significantly driven the market demand to seek better physical vitality. They prefer caffeine and taurine to enhance endurance, stamina, and physical performance. These ingredient-based energy drinks are particularly appealing to active adults.

Teenagers & kids are expected to account for the fastest-growing end use segment in 2023 owing to the widespread promotion by celebrities and influencers. Celebrities and social media influencers actively promote energy drinks, particularly among teenagers. Their endorsements create aspirational appeal and influence consumption patterns. In addition, parents appreciating beverages that align with health values have led to the increased production and marketing of organic and low-sugar energy drinks.  

Distribution Channel Insights

The on-trade distribution channel is projected to witness growth at a CAGR of 5.2%.

The off-trade distribution channel secured the largest share with 84.4%% in 2023. Consumers prefer off-trade channels, including retail stores and supermarkets, as they can carefully evaluate product quality, brand reputation, and ingredients to meet their standards before making a purchase. In addition, retail outlets provide convenient access to energy drinks and ensure widespread availability.

The on-trade distribution channel is projected to grow substantially during the forecast period. Bars, clubs, and restaurants primarily drive this segment, as consumers, particularly millennials, prefer an experiential environment. Unique energy drink flavors, mixology, and creative presentations enhance the drinking experience. Consumers can purchase energy drinks as standalone products or in combination with juices or spirits, including mocktails and cocktails. Furthermore, energy drinks fit well in nightlife, sports events, and gatherings, making them popular choices in on-trade venues.  

Packaging Insights

The bottles segment is expected to grow substantially at a CAGR of 6.0%.

Cans have dominated the U.S. energy market with the largest share of 92.4% and are expected to continue growing lucratively during the forecast period due to their high convenience, portability, and sustainability. Their lightweight design appeals to busy consumers seeking quick energy boosts on the go. Additionally, cans offer better protection against light, air, and moisture, ensuring a longer shelf life for the drink. Their high recyclability aligns with growing environmental consciousness, making them a preferred choice for eco-conscious customers.

The bottles segment is expected to be significant during the forecast period due to modern consumers’ increased preference for convenience and sustainability. They prefer packaging options that are easy to carry and can be reused. Brands that use eco-friendly materials and highlight recyclability resonate with environmentally conscious consumers. Sustainable packaging practices contribute to positive brand perception. Although aluminum cans dominate the energy drinks market due to their lightweight, protective properties, and recyclability, they often face shortages and supply chain challenges. In such cases, bottles are utilized as a preferred alternative that ensures consistent product availability even during material shortages.  

Form Insights

The drink form secured 93.8% of the market share in 2023 as energy drinks continue emphasizing performance enhancement, appealing to fitness enthusiasts, esports participants, and active individuals. Energy drinks, with their blend of caffeine, vitamins, and other functional ingredients, cater to consumers seeking beverages with the desire for sustained energy, mental alertness, and improved physical performance. With their stimulating properties, energy drinks are a viable substitute for traditional alcoholic beverages, including wine and beer.  

Moreover, the rise of specialty coffee culture has influenced energy drink preferences. Consumers have increased preference towards the nuances of coffee flavors, which has led to further expansion of the market with a sophisticated formulation of coffee with energy drinks.

Key U.S. Energy Drinks Company Insights

The market is competitive with a handful of dominant brands including Red Bull, Monster, and Rockstar. These brands’ long-standing presence and strong brand equity contribute to their prominence. In addition, numerous smaller and medium-sized companies operate in the market, focusing on niche segments, regional markets, or innovative product offerings. To maintain consumer interest and adapt to evolving preferences, key players continuously introduce new energy drink variants that cater to specific demographics including fitness enthusiasts and gamers. Furthermore, key players are expanding their portfolios with energy-infused teas, coffee-based drinks, and functional beverages.

Recent Development

• In March 2024, Red Bull introduced the limited-time-only Summer Edition Curuba Elderflower flavor. This refreshing variant combines the benefits of Red Bull energy drink with a burst of curuba, citrus, melon, and an elderflower finish.

U.S. Energy Drinks Market Report Scope

U.S. Energy Drinks Market Report Segmentation

This report forecasts revenue growth at a country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. energy drinks market report based on product, type, end-use, distribution channel, packaging, and form. 

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Alcoholic

  • Non-alcoholic

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Oil

  • Gas

  • Shale Gas

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Onshore

  • Offshore

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Primary

  • Remedial

  • Others

• Packaging Outlook (Revenue, USD Million, 2018 - 2030)

  • Oil

  • Gas

  • Shale Gas

• Form Outlook (Revenue, USD Million, 2018 - 2030)

  • Energy Drinks

  • Energy Shots