Energy drinks, the undisputed pacesetter of the convenience-store cold vault, are finding renewed vim and vigor with new products and new audiences.
Not only are the leaders of the energy space—Red Bull, C4, Monster, Rockstar and others—helping fill the retail pipeline with compelling new arrivals, but a new breed of energy players is taking center stage to provide both core drinkers and new users with more reason to get energized.
The advent of clean, sugar-free and better-for-you energy is the overarching headline, furnishing the segment with a health halo after dealing with concerns over higher caffeine levels in formulations impacting younger consumers.
To add more bandwidth to the energy offer, the emergence of mixes and pouches is attracting new users across gender and demographic lines. Energy mixes and pouch formats provide convenience and personalization along with the energy boost.
Speaking about the energy boost that’s bound to continue into 2026, beverage industry participants believe marketers “have been smart to capitalize on better-for-you trends in a category that for a long time was hyper-focused on men, college students and blue-collar workers,” said Duane Stanford, editor and publisher of Norcross, Georgia-based Beverage Digest.
The evolution toward “trendy ingredients, such as adaptogens, was inevitable: marketers across all beverage categories are cleaning up labels and capitalizing on social media-driven health and wellness trends,” said Stanford.
Stanford notes that smaller suppliers have driven much of the innovation.
“Upstarts drive most of the game-changing innovation because they’re nimble and have less to lose,” Stanford said.
Burst of energy
The consolidated category encompassing non-aseptic drinks, shots and mixes in c-stores grew 7.9% for a 52-week period ending Sept. 7, according to Circana.
The $15.5-billion c-store market saw non-aseptic drinks gain 8.5% in dollars, with energy drink mixes up a whopping 99% over the year period. Energy shots lost 6.7%.
A greater level of vigilance on the part of consumers about the foods and beverages they consume manifested post-pandemic. This paved the way for cleaner, functional energy to receive better trial in c-stores.
“Our research shows that about 60% of consumers currently read food labels on a regular basis,” a significant increase from pre-COVID-19 times, said Sally Lyons Wyatt, global executive vice-president and chief advisor of consumer goods and foodservice insights for Chicago-based Circana.
“We can’t pinpoint what came first: the public attention to higher levels of caffeine (in energy drinks) or that manufacturers understood that consumers were seeking more alternatives with energy. One way or another, it’s led to a new level of category innovation,” Lyons Wyatt said.
A “confluence” of three trends has triggered a higher level of new and intriguing arrivals within an already-prolific energy category.
“Consumers are reading more labels, watching sugar and seeking benefits beyond caffeine, which created demand for transparent formulas such as zero sugar, natural flavors, L-theanine, electrolytes and adaptogens,” said Richard Laver, founder and CEO of Austin, Texas-based drink brand Lucky Energy.
The category has also “splintered into new occasions: workday focus, gaming, pre-workout, afternoon slump: this invited formats beyond 16-ounce cans to 12-ounce sachets/mixes and pouches,” said Laver. “Add social-led discovery and GLP-1 (glucagon-like peptide) era calorie consciousness and you get a flywheel where better-for-you and better targeting keeps pulling more shoppers in.”
Laver also points to “distribution and manufacturing barriers” being razed post-pandemic as a third vital trend. “Amazon lowered the cost of trial and DSD (direct-store-delivery) networks opened doors for challenger brands with true velocities,” said Laver, whose Lucky Energy brand offers a portfolio of options that boast zero sugar, zero calories and five health-focused ingredients.
New recruitment
Be it via healthy formulations, social media or distribution-related means, new energy drinks are being tested by a new breed of consumer. The significant rise of retail coffee prices due to higher tariffs and less-than-optimal weather conditions for coffee growers conspired to make consumers seek their daily caffeine boost from alternative sources, said Lyons Wyatt.
“Consumers are making choices about where they want their energy boost to come, and some have switched from coffee to energy drinks,” she said.
Stanford of Beverage Digest reinforces this trend towards java. “Coffee drinkers have increasingly moved to energy drinks. They more and more want their coffee cold and fizzy,” he said.
Younger generations are increasingly open to adventurous tastes and innovative formats—and social media influence has had a significant impact, said Jacob Jordan, category insights manager for major U.S. c-store distributor McLane Co. Inc., Temple, Texas.
“At the same time, there’s a growing emphasis on product quality. Manufacturers that deliver BFY [better-for-you] options, offering not only great taste and excitement but also added functionality, are best positioned for long-term success,” said Jordan.
The numbers bear out the continued upward trajectory of energy, which had been growing incrementally within its core and beyond. Energy in the c-store cold vault has delivered uninterrupted dollar and unit growth that traces back more than a decade, if not longer.
Widening the ‘tent’
Expanding to attract a new breed of energy consumers is a mission that Lucky Energy “has been intentional about,” said Laver. “We leaned into gender-neutral, lifestyle-forward branding: our white cans and clean design aesthetic signal accessibility to invite women, professionals and wellness-minded shoppers.”
Other suppliers have developed nuanced strategies, be it through energy line extensions or across their multiple brand lineup. At Keurig Dr Pepper Energy Brands, Burlington, Massachusetts, each of its four brands offers a distinct point of difference to appeal to a wide range of consumers, said Justin Whitmore, president of Keurig Dr Pepper Energy Brands.
“Bloom (Sparkling Energy) is a female-forward offering, C4 Energy offers functional performance focus, Ghost is a mainstream appeal while Black Rifle has an unapologetically American positioning,” said Whitmore.
This delineated strategy has helped KDP grow from near-zero market share to more than 7% of the U.S. energy category in just a few years, said Whitmore, adding that nearly three-quarters of Gen Z and two-thirds of millennials try new beverages monthly.
“More than 60% of energy drink consumers purchase at least once per week, and the category continues to add millions of new households each year,” said Whitmore. “There remains significant headroom for growth relative to more mature liquid refreshment beverage segments.”
Make the space work harder
There’s a lot at stake; thus, retailers are constantly seeking to right-size an ultra-robust category from a category management standpoint. “The answer isn’t to keep expanding the cold vault but to make the space work harder,” said Laver of Lucky Energy.
Using automated data, consumer feedback and wholesale-distributor input, retailers can calibrate sets, “indexing to velocity, giving space in proportion to what actually moves, but regularly run incrementality checks so slower-turning ‘new’ brands that bring in different shoppers don’t get cut too soon,” said Laver.
“Showing up with the right product at the right price and making a strong case for shelf space (is essential). Our DSD network, strong brand portfolio and deep consumer insights” enables the team to carry this out, Whitmore of KDP Energy said.
Stanford of Beverage Digest calls this period “one of extreme culling. The most efficient retailers demand that brands earn their space with velocity and they cut quickly those that can’t (earn their space),” said Stanford.
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