Despite the fragmentation within the energy drink market, brands are eager to capture a portion of the category’s market share. According to Market Research Hub, U.S. sales of energy drinks are projected to reach approximately $16.9 billion by 2022, up from nearly $11 billion in 2018. Although the category continues to grow and remains highly profitable, the annual growth rate has slowed to 1.5%, as reported by Euromonitor International. This decline is a sharp contrast to the 60% growth rate seen from 2008 to 2012, as noted by Fortune, and is primarily due to increased competition.
Nevertheless, many brands are seeking ways to enter the space. For instance, in addition to Adrenaline Shoc, Amazon has introduced private-label energy drinks under the Solimo brand to rival Red Bull, Rockstar, and Monster Energy. Coca-Cola is also set to launch its first branded energy drink this month in Spain and Hungary. Coke, which owns 16.7% of Monster, is currently in arbitration with the company over whether its competitive actions violate a 2015 agreement. Additionally, Bang Energy has gained traction in the performance beverage sector, capturing 9% of the overall energy drink market, according to the Wall Street Journal.
While the market is becoming increasingly crowded, Adrenaline Shoc aims to distinguish itself by positioning its brand as an ideal after-workout boost. It faces stiff competition, including Bang and Monster’s new Reign line, which also offers performance drinks suitable for pre- or post-workout consumption. Competing against the leading energy drink brand may appear daunting, but this could be an opportune moment for companies like Keurig Dr Pepper to enter the fray. Analysts such as Bonnie Herzog at Wells Fargo have suggested that Monster’s venture into the performance energy segment might be “too little, too late” to secure a leadership position in the category. Additionally, Monster’s overall growth has been slowing as consumers increasingly seek more natural caffeine sources, a trend that Adrenaline Shoc is attempting to leverage.
However, the brand’s emphasis on using more natural caffeine sources to enhance its appeal to customers has also led to higher prices. Priced nearly twice that of Monster’s Reign and Amazon’s Solimo, this new drink targets consumers willing to pay a premium. Despite this, Collins — the visionary behind Fuze tea, BodyArmor sports drinks, and Core bottled water — appears to have the expertise to position beverages within the premium segment and successfully grow them.
As the quest for energy through beverages shows no signs of waning, it is becoming more fragmented. Coffee was once the go-to source for energy, but now various options, including energy drinks, functional waters, guayusa drinks, and teas, are all vying for market share. It may require significant effort from Keurig Dr Pepper and Collins to persuade consumers that Adrenaline Shoc stands out in this crowded landscape. Moreover, as some consumers may experience an upset stomach from certain energy drinks, the inclusion of ingredients like calcium citrate could become an important selling point for brands looking to differentiate themselves further.