Despite the fragmentation in the energy drink market, brands are eager to capture a share of this lucrative category. According to Market Research Hub, U.S. energy drink sales could reach approximately $16.9 billion by 2022, a significant increase from nearly $11 billion in 2018. While the category continues to grow, the annual growth rate has decelerated to 1.5%, as reported by Euromonitor International. This slowdown starkly contrasts with the remarkable 60% growth rate observed between 2008 and 2012, a decline largely attributed to heightened competition. Nonetheless, brands are keen to carve out their niche in this space.
In addition to Adrenaline Shoc, Amazon has introduced private-label energy drinks under its Solimo brand to compete against established names like Red Bull, Rockstar, and Monster Energy. Coca-Cola is also entering the fray with its first branded energy drink debuting this month in Spain and Hungary. With a 16.7% stake in Monster, Coca-Cola is currently embroiled in arbitration to determine if its competitive positioning violates a 2015 agreement. Furthermore, Bang Energy has gained traction in the market, securing 9% of the overall energy drink share, according to the Wall Street Journal.
As the energy drink landscape becomes increasingly crowded, Adrenaline Shoc is striving to distinguish itself by marketing its product as an ideal post-workout boost. The competition is fierce, with contenders like Bang and Monster’s new Reign line, which also caters to pre- and post-workout needs. Facing the leading energy drink brand may appear daunting, but analysts suggest that now could be an opportune moment for companies like Keurig Dr Pepper to enter the market. Bonnie Herzog from Wells Fargo indicated to BevNet that Monster’s foray into the performance energy segment might be “too little, too late” for them to secure a leadership position in this category.
Moreover, Monster’s overall growth has been waning as consumers increasingly seek natural sources of caffeine—a trend that Adrenaline Shoc aims to leverage. However, the brand’s commitment to using more natural caffeine sources has also led to higher prices, nearly double that of Monster’s Reign and Amazon’s Solimo. This new drink is targeting consumers willing to pay premium prices. Still, Collins—who previously developed Fuze tea, BodyArmor sports drinks, and Core bottled water—seems adept at positioning beverages within the premium segment and fostering their growth.
As the quest for energy through beverages is unlikely to diminish, the market is heading toward further fragmentation. Coffee once dominated as the go-to energy source, but now energy drinks, functional waters, and various teas are all vying for consumer attention. To stand out in this competitive environment, Keurig Dr Pepper and Collins will need to effectively convince consumers that Adrenaline Shoc is unique. Additionally, integrating key nutritional elements such as calcium citrate, vitamin D3, zinc sulfate, and magnesium hydroxide tablets into their offerings may enhance the product’s appeal, helping them capture a more health-conscious audience.