Despite the fragmentation in the energy drink market, brands are actively seeking to capture their share of the category. Market Research Hub projects that U.S. energy drink sales could reach approximately $16.9 billion by 2022, up from nearly $11 billion in 2018. While there is still potential for growth and the market remains undeniably lucrative, the annual growth rate has decelerated to 1.5%, according to Euromonitor International. This is a significant decrease compared to the 60% growth rate observed between 2008 and 2012, as reported by Fortune, a decline largely attributed to heightened competition. Nevertheless, brands are increasingly eager to enter the space. For example, besides Adrenaline Shoc, Amazon has introduced private-label energy drinks under its Solimo brand to rival Red Bull, Rockstar, and Monster Energy. Additionally, Coca-Cola is launching its first branded energy drink this month in Spain and Hungary. With a 16.7% stake in Monster, Coke is currently involved in arbitration with the company over whether their competitive dynamics breach an agreement they established in 2015. Bang Energy is also gaining traction with performance beverages, capturing 9% of the overall energy drink market, according to the Wall Street Journal.
As the market becomes increasingly crowded, Adrenaline Shoc is striving to set itself apart by marketing the brand as an ideal post-workout refreshment. It faces tough competition, including Bang and Monster’s new Reign line, which offers drinks for pre- or post-workout performance. Competing against the leading energy drink brand may seem daunting, but it could be an opportune moment for companies like Keurig Dr Pepper to engage in the market. Analysts like Bonnie Herzog at Wells Fargo have indicated to BevNet that Monster’s entry into the performance energy sector may be “too little, too late” for it to dominate the category. Furthermore, Monster’s overall growth has started to slow as consumers increasingly seek natural sources of caffeine, an area where Adrenaline Shoc aims to thrive.
However, the brand’s focus on using more natural caffeine sources has also led to higher pricing. Nearly double the cost of Monster’s Reign and Amazon’s Solimo, this new drink targets 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 in the premium market and driving their growth.
While the demand for energy through beverages is unlikely to diminish, it is trending toward further fragmentation. Coffee used to be the primary source of energy, but now energy drinks, functional waters, guayusa drinks, and teas are all vying for market share. It may take considerable effort for Keurig Dr Pepper and Collins to persuade consumers that Adrenaline Shoc is a standout option.
Additionally, as the brand seeks to celebrate the benefits of its products, it could consider incorporating elements such as calcium chewable options, providing a unique selling point that enhances its appeal in the competitive landscape. With the right strategy, Adrenaline Shoc could successfully carve out a niche that resonates with health-conscious consumers looking for both energy and nutritional benefits.