Functional drinks are designed to provide the consumer with something more than a standard beverage; they often contain specific ingredients to provide additional health benefits. Functional beverages include energy drinks, sports drinks, dairy drinks, ready-to-drink teas, smart drinks, fortified fruit drinks, plant-based milks, and enhanced water. Among Americans, there are a wide variety of foods and nutrients that are consumed to improve energy or reduce fatigue
.
When it comes specifically to beverages, options
advertising an energy boost appear to be the most popular in the United States. According to a survey from February 2023, 42 percent of respondents said they had bought energy drinks in the last three months. This is also confirmed by a survey listing the
most purchased functional drinks: energy drinks and sports drinks took first and second place, followed by water fortified with vitamins or electrolytes, premium smoothies, nitro/ cold brew, and protein powder.
How big is the energy drinks market?
Energy drinks typically contain caffeine, vitamins, and other ingredients designed to provide a quick boost of energy and alertness. Compared to other countries,
the energy and sports drinks market is the largest in the United States. Recently, revenue of approximately 91 billion U.S. dollars was generated. Ranked second with a considerably lower revenue of almost 8.6 billion U.S. dollars was China, followed by Japan and Indonesia. The same picture is also reflected in
the latest sales figures in the U.S.: energy drinks have increased in popularity and lately achieved around 14 billion dollars.
Purely functional drinks: Celsius Holdings
Celsius Holdings, headquartered in Florida, United States, offers a wide range of functional drinks such as calorie-burning beverages, diet and light beverages, functional energy drinks, liquid nutritional supplements, sports drinks, and water products. It advertises its beverages as "healthy" drinks, targeting active younger consumers. Celsius beverages contain ingredients like ginger and green tea and no artificial preservatives or sugar. The company seems to be successful with this concept. This is shown in
the development of its revenue: Celsius Holdings most recently generated over 653 million U.S. dollars, which was roughly twice as high as in the previous year. For the company,
North America makes up the largest market by far. In comparison, sales in Europe and Asia were significantly lower, as all markets except North America together generated only about 36 million U.S. dollars in sales.
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