Energy drinks remains one of the growth stars in US soft drinks, and more widely across consumer packaged goods. Despite many categories struggling to stimulate meaningful volume with a financially stretched US consumer, energy drinks achieved 4% retail volume growth in 2024 – even accounting for weaker traffic in the higher-priced, inflation-impacted convenience channel, a challenge which appears to be somewhat abating in 2025.
The maturation of US energy drinks has coincided with a more nuanced and demographically expansive understanding of “energy” as a consumer need state. Energy drinks has its roots in very similar combinations of sugar, caffeine, B vitamins and taurine, supported closely by high-octane, Gen X-style marketing, with close ties to alternative sports, music events and nightlife. Legacy category leaders in the US have historically pursued a male-centric consumer profile, which is also often reflected in advertising, merchandising and marketing decisions.
Celsius reaches beyond the core young, male energy drinks consumer
Celsius, one of the standout US brands in 2024, has gained share by expanding its target consumer profile. The brand focuses on a zero-sugar/zero-calorie formulation, brighter packaging, innovative fruit flavours and successful association with a more inclusive definition of wellness and nutrition. The brand seeks to win consumers with an allied concept of energy to fitness and nutrition goals, in contrast to more extreme young male-focused branding. In April 2025, Celsius Holdings (now distributed in the US by PepsiCo) acquired Alani Nutrition LLC, producer of the Alani Nu RTD energy drink, as well as a line of pre-workout powders and supplements. The brand complements the Celsius strategy of expanding category appeal to women, and potentially higher-income lifestyle consumers.
“Looking at their brand positionings. Celsius, functional for individuals living an active, healthy lifestyle; where Alani Nu is more centered around community, empowerment, wellness for young women.”
– John Fieldly, CEO and Chairman, Celsius Holdings, M&A Call Alani Nutrition LLC 28 May 2025
Upstart premium brands also bring a higher-income shopper to the category
Euromonitor’s E-Commerce data demonstrate the expanding appeal of the Celsius energy drink to higher-income consumers.
A significantly higher percentage of online shoppers for both Celsius and Alani Nu have incomes over USD100,000, while brands like Monster and pre-workout brand C4 overindex with middle- and lower-income shoppers online
Source: Euromonitor International
The growing income segmentation of the category carries significant channel implications, with higher-income consumers more likely to explore club channels, supermarkets and alternative channels (gyms or other health clubs) for energy drinks, in contrast to the convenience store and forecourt retailer focus of Monster, Bang and similar brands.
Online shopper data reveal interesting shifts in the age and gender profile of shoppers within the category. While influencer-supported brands like Alani Nu and Bloom are unsurprisingly more likely to skew female in shopper profile, we also see the growing popularity of juice-based energy brand V8 and nootropic/brain-health focused energy RTD Gorilla Mind among female US shoppers.
Is there white space in affordable energy drinks?
Premiumisation is bringing more affluent shoppers into the category, but new value-orientated brands or private label offerings may still find white space – especially as affordability pressure persists for US households.
Meanwhile, functional crossover from pre-workout and hydration categories offers new daily usage occasions. Products once confined to gym bags are showing up in office fridges and kitchen counters. There is an early momentum for more natural, plant-based formulations appealing to ingredient-sensitive or health-conscious consumers, particularly women. Brands that incorporate adaptogens, vitamins or lower-caffeine formulations can attract users who may have avoided traditional energy drinks in the past.
There's also untapped potential in the female-driven interest in brain health and productivity. Alternative formats such as powders, drink drops and hybrid wellness shots also have disruptive potential, particularly if they offer affordability, portability or customisation, backed by credibility of delivering the claimed functions.
Ultimately, the evolving concept of energy-boosting drinks is creating space for a bolder, more inclusive and more functional shelf.
Read our report, Future of Functional: Wellness in a Can, for more analysis on the global opportunities and outlook for premium, functional drinks.