Some newer players in the segment have come out with energy beverages that specifically address these needs. seen a significant spike in people looking for functional benefits, particularly from beverages,” says Sheridan. Retailers are meeting these needs by rethinking the category and focusing on products that try to gear towards a lower percentage of added sugar and caffeine, while also re-looking at the ingredients and focusing on ones that are plant-based.” “People are now also very conscious about the sugar content within their energy drinks, and they can also be concerned with caffeine levels as well. “Consumers these days are looking for a natural and clean ingredient source of energy that doesn’t include the typical jitters and crashes you would get from a traditional energy drink,” explains Dang. “Despite more people staying home due to the pandemic, the need for energy has never been stronger, and our insights show that consumers say they need more energy these days than before COVID,” asserts Paul Sheridan, senior director, global R&D sparkling, energy and foodservice at Purchase, N.Y.-based PepsiCo, maker of such brands in the category as Rockstar Energy Drink, which the company acquired last year and recently relaunched worldwide with a refreshed look, and the newly introduced Mtn Dew Rise Energy.Īlthough, according to Freck, “Growth has been coming equally from full-sugar and reduced-sugar offerings in the category, and equally from core products and flavor offerings from top brands … across can sizes and pack types,” many have observed that better-for-you beverages in this space are becoming increasingly popular. Indeed, this trend looks likely to outlive the virus. “We are seeing this shift due to the fact that during the pandemic, there were more people at home who needed something to help boost their productivity.” “The segment has had strong growth during the past year, though our assortment is quite limited, as the category before was not as strong,” says Christine Dang, category manager at Los Angeles-based online grocer Thrive Market.
“Many consumers shifted purchasing to trusted energy drink brands in 2020, driving record growth for a brand like Red Bull in 2020 and year to date in 2021.” “2020 unlocked new need states for consumers, driving energy drink category growth in the grocery channel that has persisted into 2021,” notes Laura Lynn Freck, senior director, shopper and category insights at Santa Monica, Calif.-based Red Bull North America. By all accounts, 2020 was a banner year for energy drinks.
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