Circana’s 2023 New Product Pacesetters report has found rollouts of new energy drink products are on the rise as more merchandisers seek to leverage shoppers’ growing focus on options that meet their interest in convenience, health and wellness, taste, and functionality.
“As consumers demanded more than just sustenance and refreshment from their food and beverage choices during the past couple of decades, a broad market of energy and performance-boosting products emerged,” Circana said in its new product report.
“The slim can bursting with caffeine and flavor launched a market of high-intensity beverages and a revolution in carbonated and energy-boosting beverages began,” it said.
Some of the popular new products include Cold & Crafted coffee from Starbucks for a “ready-to-drink boost,” and Gatorade has rolled out Gatorlyte, which has a lower sugar content than its traditional sports drinks. Red Bull has also started a marketing campaign for Green Edition, which “provides energy and ‘vitalizes body and mind’ with its dose of dragon fruit.”
The Circana annual review found energy drinks, sports beverages and hard seltzers accounted for many of the year’s most successful product launches, occupying six of the report’s top 10 rankings and generating nearly $700 million in sales. Circana identified products such as Alani Nu’s energy drink line which includes ingredients like biotin, B6 and B 12 vitamins as an example of which types of drinks have brought them success.
“Energy beverages are more nuanced than ever, as they are enhanced with benefits including vitamins and a hyperfocus on hydration,” New Product Pacesetters report stated. “More than 41% of consumers say they want new beverages to help with hydration, better than 25% of consumers want more than basic nutritional benefits, and nearly 17% want an energy boost.”
“Consumers are looking for products that provide an energy boost that is more sustained and in new formats,” said Lisa Maas, principle and practice lead of Circana’s Innovation unit. “These products offer ease of consumption, but more importantly more natural energy sources and added health benefits.”