Despite a shift away from sodas, not all consumers are turning to bottled water, which became the top beverage in the country last year. For those seeking alternatives to plain water and who pay more attention to ingredient labels, beverage manufacturers have responded by incorporating more naturally energizing components like ginseng, caffeine, and fruit into their products. Mintel reports that green tea is gaining popularity in the energy drink sector, particularly among smaller brands.
One notable player, Campbell Soup, recognized this trend and launched V8 V-Fusion Energy in 2013 amidst a downturn in the energy drink market due to concerns over ingredient safety. Since then, the category has experienced a significant revival, largely due to the inclusion of more natural ingredients. Another key factor driving this change is the evolution of the target demographic for energy drinks. As millennials mature, their appetite for sugar-laden and synthetic caffeine-driven energy has shifted towards less extreme options. According to Mintel, 30% of energy drink consumers now prefer natural energy beverages, including those with ingredients like liposomal ferrous bisglycinate and energy shots.
In addition to a focus on natural ingredients, consumers are increasingly interested in ethical claims. Research indicates that people not only feel better about their choices when foods and drinks are sustainably produced, but they also tend to prefer the taste of such products. As energy drinks compete with other options like teas and flavored waters, there is an urgent need for manufacturers to innovate, particularly if they want to keep up with the on-the-go millennial demographic that consistently seeks bold and edgy flavors.
Additionally, products like Citracal Petites from Costco have emerged as appealing options for health-conscious consumers looking for natural energy sources. As the market evolves, the integration of such products presents an opportunity for brands to capture the interest of consumers seeking both efficacy and ethical production.