Energy drink trends: Coca-Cola discontinues energy brand in US

Although energy drinks have witnessed steady year-on-year (YOY) growth in the US recently, Coca-Cola has decided to discontinue its Coca-Cola Energy brand after 17 months in the US market. This highlights a gap in the market for hybrid innovations, according to GlobalData.

Holly Inglis, Beverages Analyst at GlobalData, commented: “Coca-Cola Energy’s launch in the US was long-awaited; despite the US market size, it was one of the latter markets to begin sales after many regions in Europe. At a time where the energy drinks market is flourishing, it is interesting that Coca-Cola has chosen to pause sales of a potential future cash cow.”

According to GlobalData, the US energy drinks market grew by 10% in 202⁰¹ and was buoyed by a flurry of innovations such as Monster Mule ginger-flavoured drink and Moonlight Wingman Smart Energy. Despite COVID-19 lockdown restrictions throughout the year, the category remained a key purchase choice for many consumers across the country.

In GlobalData’s latest survey, 73%² of US consumers stated that energy-boosting ingredients are either nice to have or essential to purchasing decisions. Interestingly, this comes at a time where health and wellness trends are prevailing and where energy drinks have, in the past, come under scrutiny for high sugar and unfavourable additive content. Manufacturers have worked to offset this by adding functional claims or unique flavour innovations to their beverages.

Inglis continued: “GlobalData’s survey found that 82% of US consumers stated that immunity-boosting ingredients have a positive influence on their purchasing decisions³, reinforcing that there is opportunity for beverage manufacturers to innovate energy drinks products that combine health and wellness claims with energy-boosting ingredients.”

Image credit: ©stock.adobe.com/au/Davide Angelini

_{1. Data taken from GlobalData’s Annual Soft Market Analyser – US}

_{2. GlobalData’s Q1-21 Consumer Survey Results – North America}

_{3. GlobalData’s Q1-21 Consumer Survey Results – North America – Combined responses: “Essential / Key driver of purchase” and “It is nice to have”}