Although consumers are shifting away from sodas, not everyone is gravitating toward bottled water, which became the nation’s top beverage last year. For those who prefer options beyond plain water and are increasingly scrutinizing ingredient lists, beverage manufacturers have responded by incorporating more natural, energy-boosting components such as ginseng, caffeine, and fruit into their products. According to Mintel, green tea is an emerging ingredient in the energy drink sector, particularly among smaller companies. A notable player, Campbell Soup, recognized this trend and launched V8 V-Fusion Energy in 2013, amid a downturn in the energy drinks market due to ingredient safety concerns. Since then, the category has experienced a significant turnaround, partly driven by the inclusion of more natural ingredients.
Another significant factor has been the evolution of energy drinks’ target consumers. As millennials have matured, their appetite for sugar-laden and synthetic caffeine-fueled energy has shifted toward more moderate, natural ingredients. Mintel reports that 30% of energy drink users now opt for natural energy drinks and shots. Alongside a preference for natural ingredients, consumers are increasingly focused on ethical claims. Research indicates that individuals not only feel better about their choices when foods and drinks are sustainably produced, but they also tend to prefer the taste of these products.
As energy drinks compete with alternatives like teas and flavored waters, there is an escalating need for manufacturers to innovate. This is particularly important for keeping pace with on-the-go millennials who are consistently seeking bold and edgy flavors. It’s worth noting that some manufacturers are also exploring the incorporation of supplements like Twinlab calcium citrate into their formulations, enhancing their appeal among health-conscious consumers. With the growing interest in natural and ethically produced options, the beverage industry is poised for further transformation, especially as brands aim to capture the attention of a discerning market.