U.S. Energy Drinks Market Size Estimated to Reach $17.2 Billion by 2026
U.S. Energy Drinks Market size is estimated to reach $17.2 billion by 2026, growing at a CAGR of 6.9% during the forecast period 2021-2026. Energy drinks are beverages that usually contain caffeine, sugar, and supplements, such as vitamins and carnitine, and are promoted as products capable of enhancing physical performance and mental alertness. Energy drinks are one of the most popular dietary supplements consumed by teens and young adults in the country. Energy drinks are increasingly being adopted among the millennial population owing to the rise in marketing campaigns in the country. The increase in the demand for various energy drinks and sports drinks without any artificial sweeteners, rise in the shift towards energy drinks made with herbal extracts owing to the increasing awareness about its health benefits, growing investment by the key players to expand their presence in the country, and the rise in the demand for energy drinks made with taurine amino acids are the factors that are set to drive the growth of the U.S. Energy Drinks Market for the period 2021-2026.
Key Takeaways
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- The growing adoption of energy drinks made with herbal extracts and taurine amino acids is driving the Non-Alcoholic segment. However, the rise in the availability of substitutes is one of the major factors that is said to reduce the growth of the U.S. Energy Drinks Market.
- The rise in the demand for various energy drinks and sports drinks without any artificial sweeteners in supermarkets is driving the Supermarkets/Hypermarkets segment.
- Detailed analysis on the Strength, Weakness, and Opportunities of the prominent players operating in the market will be provided in the U.S. Energy Drinks Market report.
U.S. Energy Drinks Market: Market Share (%) By Distribution Channel, 2020
U.S. Energy Drinks Market Segment Analysis - By Type
The U.S. Energy Drinks Market based on the Type can be further segmented into Alcoholic and Non-Alcoholic. The Non-Alcoholic segment held the largest share in 2020 and is also estimated to be the fastest-growing segment with a CAGR of 7.2% over the period 2021-2026. This growth is owing to the factors such as the increase in the adoption of energy drinks made with herbal extracts and taurine amino acids in the country and the growing advertising campaigns by the key players to attract consumers in the country. The rise in the investments by the key players to develop non-alcoholic energy drinks with innovative flavors is driving the growth of the U.S. Energy Drinks Market. The Alcoholic segment held the second-largest share in 2020 owing to the factors such as the growing demand for alcoholic energy drinks among the young population and the rise in the consumption of alcoholic energy drinks in urban areas in the country.
U.S. Energy Drinks Market Segment Analysis - By Distribution Channel
The U.S. Energy Drinks Market based on the Distribution Channel can be further segmented into Online Channels, Supermarkets/Hypermarkets, Convenience Stores, and Others. The Supermarkets/Hypermarkets segment held the largest share in 2020 owing to the factors such as the increase in the demand for various energy drinks and sports drinks without any artificial sweeteners in supermarkets and the rise in the investment by the key players. The easy availability of choice of flavor and trustworthiness in the supermarkets is driving the growth of the U.S. Energy Drinks Market. The Online Channels segment is estimated to be the fastest-growing segment with a CAGR of 7.4% over the period 2021-2026. This growth is owing to the factors such as the rise in the demand for energy drinks made of herbal extracts and taurine among the young population in online channels, growing inclination towards a sedentary lifestyle, and advancements in technology.
U.S. Energy Drinks Market Drivers
- The Rise in the Adoption of Herbal Extracts in Energy Drinks
The young consumers in the country are increasingly shifting towards energy drinks made with herbal extracts owing to the growing awareness about its health benefits, such as enhanced energy, alertness, concentration, and mental performance. The key players are also focusing on developed various energy drinks with organic herbal extracts, which is further propelling the growth of the U.S. Energy Drinks Market.
- Increase in the Popularity of Energy Drinks among the Millennial Population
Energy drinks made with natural sweeteners, taurine amino acids, and herbal extracts are extensively gaining popularity among the millennial population in the United States owing to the rise in the marketing campaigns that are mainly directed towards the young population. These advertising campaigns are enhancing consumer expectations about the benefits of various energy drinks in the country, which is one of the major factors driving the growth of the U.S. Energy Drinks Market.
U.S. Energy Drinks Market Challenges
- The Rise in the Availability of Substitutes
The key players in the market are increasing their investment to carry out various research and development activities for launching high-quality energy drinks without any artificial sweeteners. However, the rise in the availability of substitutes, such as packaged juices and malted health drinks is one of the major factors that is estimated to reduce the growth of the U.S. Energy Drinks Market.
U.S. Energy Drinks Market Competitive Landscape:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the U.S. Energy Drinks Market. Key companies of this market are PepsiCo Inc, Monster Beverage Corporation, Rockstar Inc, Red Bull GmbH, Arizona Beverages, Living Essentials LLC, GURU Organic Energy Corp, Taisho Pharmaceutical Co Ltd, Xyience Energy, and National Beverage Corp among others.
Expansions/Product Launches:
- In May 2021, GURU Organic Energy Corp has launched a plant-based energy drink yerba mate in the U.S. Market to meet the growing demand of customers who are looking for healthy alternatives in the energy drink sector.
- In March 2021, PepsiCo Inc has launched a line of energy drinks called Mtn Dew Rise Energy for morning consumers in the United States to meet the growing demand for non-alcoholic beverages in the energy drink sector in the country.
