The Next Best Energy Drink Will Be Both Functional & Flavor Forward

The energy drink evolution means big opportunities for brands willing to innovate with functional ingredients and bold flavors.

If you haven’t been paying attention to energy drinks, it’s time to check-in. No longer exclusive to overnight work shifts, extreme sports, or gaming culture, energy drinks are popping up at bars, music festivals, and more. Parents enjoy them in the pickup line and they’re even replacing alcohol for some. 

That’s not all.

According to a 2025 Mintel report, it’s estimated that energy drink growth will exceed 33 billion dollars by 2029, “driven by flavor innovation, BFY (better-for-you) claims and consumer habits of drinking 2+ types of energy drinks, depending on occasion.”¹

Technically, energy drinks are functional beverages, but today’s trending drinks are delivering a lot more on the “functional” front in response to consumer demand for BFY options.

Mintel food and drink consumer insights analyst Jack Doggett explained that for consumers to consider an energy drink to be “healthy,” it needs more benefits than before. “A variety of vitamins and minerals, low sugar, added hydration and a lack of jitters are all energy drink-specific benefits consumers expect to see in BFY options.”²

The beverage landscape is rapidly evolving and energy drinks are well suited for innovative ingredients and flavors. Brands that understand who consumers are, as well as when and why they reach for energy drinks, can adapt quickly to meet demands and stay competitive.

Discover what’s driving the energy drink evolution and how bold, exciting flavors are helping brands stay competitive while building on customer loyalty.

The New Energy Drink: Functional Format Blurring

After years of health concerns associated with high caffeine and sugar consumption, this functional evolution paints energy drinks in a much more favorable light. While those concerns still exist, many producers are attempting to meet clean label demands with more recognizable ingredients, low to zero sugar and/or calories, as well as “natural caffeine.” 

Caffeine sourced from things like green tea is often perceived as healthier for its additional antioxidants, sustained energy, and reduced jitters/crash. However, that’s the tip of the iceberg in terms of innovation.

With ingredients like biotin, collagen, pre-biotics, and even whey protein, energy drinks and sports drinks are now capable of helping consumers bridge nutritional gaps, support digestive health, and even provide skin benefits. 

The demand for additional functionality is significant with “71% of sports/energy drinks consumers in the US [saying] they wish these products had other functional benefits.”³ It’s no secret that consumer wellness trends have been influencing the beverage industry for years, but one look at recent launches highlights the depth of that influence.

Brands like Protein2o offer protein hydration drinks for athletes using whey protein, electrolytes, and vitamins B5 and B6.⁴ Collagenx advertises their beverage as “The First Beauty Energy Drink” and it includes collagen, biotin, niacinamide, and caffeine.⁵ Bloom Nutrition’s Sparkling Energy Drinks include prebiotics and advertise increased energy, a boost to metabolism, and increased mental focus.⁶

Even well-established brands like Monster are offering products with enhanced functionality. Their Rehab Monster comes in five flavors and is “packed with electrolytes, vitamins, and botanicals that deliver on advanced hydration helping you reduce fatigue and increase concentration.”⁷

Bottom line? Since many still perceive caffeine as unhealthy, a simple boost in energy isn’t enough. However, energy drinks that provide additional functional effects and “clean” energy will resonate with consumers looking for products that align with their ideas of wellness.

Opportunities in Expanding Energy Drink Occasions

Today’s energy drinks, and the reasons consumers reach for them, have come a long way from their “medicinal” origins.

In post-World War II Japan, Taisho Pharmaceutical Company launched what many consider to be the first modern energy drink called Lipovitan-D. This medicinal tonic was marketed to factory workers and truck drivers, and was designed to enhance work productivity with a mix of B vitamins, caffeine, and taurine.⁸

In the late 1970s, a better tasting version called Krating Daeng popped up. That translates to Red Bull. Yes, THAT Red Bull. He later formed a partnership with Dietrich Mateschitz to develop and market it internationally. From there, it became associated with sports, then extreme sports, and then video games and esports. ⁹

Those motivations still exist today. According to Mintel, 21% of daily consumers still reach for energy drinks while working, 21% before physical activity, and 20% simply upon waking. However, energy drinks are becoming popular during more specific occasions as well. 

For example, at least once a week, 83-84% of parents with children under 18 are likely to consume an energy drink, 56% of consumers reach for energy drinks before a night out, and 33% are replacing alcoholic beverages with energy drinks. 

This is no random trend, either.

A 2025 report on Non-Alcoholic Beverage Occasions noted that energy drinks, along with carbonated soft drinks and sparkling water, have experienced some of the strongest growth. “This surge can be attributed to their versatility, as they cater to a wide range of needs, offering emotional appeal through flavor, and functional benefits like energy and hydration.”¹⁰

Clearly, the occasions in which consumers reach for energy drinks are evolving. From physical stamina and recovery to mental clarity and fun, energy drinks are a versatile category capable of meeting a wide variety of consumer preferences. 

Energy Drinks Win with Bold Limited Edition and Seasonal Flavors

While brand loyalty exists within the energy drink category, Mintel emphasizes that flavor preference remains a top priority for consumers with 43% stating flavor was more important than brand name. 

Mintel explains that “Flavor experimentation is one of the strongest trends in the category. Limited-edition releases, seasonal flavors, and inspiration from other categories (e.g., candy) cater to adventurous consumers and open doors for brand partnerships.”

Brands like Alani Nu maintain interest and engagement in a competitive market by regularly launching seasonal and limited edition flavors. Their Sherbet Swirl and Cotton Candy flavors appeal to consumers who want BFY beverages with indulgent flavors.¹¹ 

Their limited-edition Witches Brew, a combination of green apple and caramel, regularly sold out last year prompting the brand to bring it back as a seasonal staple. Thanks to its success, consumers are already on the hunt for their latest seasonal launch, Pumpkin Cream.

The opportunities for flavor innovation are vast, and Mintel’s Flavourscape AI highlights fruit, confectionary, floral, and even spice flavors in its analysis of the North American sports drink landscape.¹² Fruit flavors like Blue Raspberry, Apricot, and Kiwi are well established, while emerging flavors include Peach, Sherbet, Ginger, Passionfruit, Yuzu, and even Gummy.

On top of great taste, flavor is a way for brands to convey messages to consumers about occasions. Energy drinks with traditional “morning” flavors like coffee or orange juice may appeal to consumers looking for a morning pick-me-up, while cocktail-inspired flavors strengthen associations with going out, socializing, and celebrating. 

Whether you’re trying to engage with consumers with novel, nostalgic, or occasion-specific flavors, brands that continuously innovate with flavor may be more likely to capture fickle customer loyalty.

Create the Best-Tasting Energy Drinks with Abstrax Flavor Solutions

At Abstrax, we provide novel solutions for beverage manufacturers looking to streamline, innovate, and gain a competitive edge. With our knowledge and extensive resources, we’ve crafted collections that make it easy to brew with the precise flavors and aromas your customers want.

Ready to create the next trending energy drink? Contact us today and let’s get to work!

1. A Mintel Analyst, Global Analyst. (2025, April 01). Energy Drinks – US – 2025. [Market Report]. Mintel. https://www.mintel.com/ 

2. Alverson, C. (2025, August). Shooting For More: Energy Drinks, Shots Market Embraces Innovation, Functionality. Digital Edition. https://digitaledition.bevindustry.com/august-2025/category-focus/

3. Kaczorowski, Mikolaj. (2025, June 27). A Year of Innovation in Sports and Energy Drinks, 2025. [Market Report]. Mintel. https://www.mintel.com/

4. Protein2o Protein Hydration Drinks: Protein Packed. Electrolyte Filled. Protein2o. (2025, April 14). https://drinkprotein2o.com/

5. The Only Energy Drink Your Skin Loves. COLLAGENX. (n.d.). https://www.drinkcollagenx.com/products/collagenx-the-energy-drink?srsltid=AfmBOopfb2imVP9lsZ8z5Y4x968O5aEMGqNfqtEKJEdTeI7ww-NE9DTM

6. Bloom Nutrition Sparkling Energy. Bloom Nu. (n.d.). https://bloomnu.com/products/sparkling-energy?srsltid=AfmBOophP0ODvikbXxuMOg3iK_SZqEUfI6IKK4TqHEjuXpiVuFidQWbE&variant=46303156437092

7. Rehab Monster Flavors | Brewed Tea Energy Drinks. Rehab Monster. (n.d.). https://www.monsterenergy.com/en-us/energy-drinks/rehab-monster/

8. The History and Rise of Energy Drinks. PRO Engineering/Manufacturing Inc. (2023, April 25). https://prowm.com/brewing/energy-drinks-history-rise-pasteurization/

9. Red Bull. (n.d.). History of Red Bull: Giving Wiiings Since 1987. History of Red Bull. https://www.redbull.com/us-en/energydrink/history-of-red-bull

10. Mills, Julia. (2025, June 30). Non-Alcoholic Beverages Occasions – US – 2025. [Market Report]. Mintel. https://www.mintel.com/

11. Energy Drink - Witch’s Brew. Alani Nu. (n.d.). https://www.alaninu.com/collections/drinks-snacks/products/energy-drink-witchs-brew

12. Mintel’s Flavour Landscape for Energy Drinks in Canada and USA. Flavourscape AI. Mintel. (n.d.). https://clients.mintel.com/scapes/flavourscape/landscape?searchTerms=woTCp2ZsYXZvdXLCkMKuYXR0cmlidXRlR3LEhnDCkMKmcmVnaW9uwpLCpkNhbmFkYcKjVVNBwqhjxIvEm29yecKRwq1FbmVyZ3kgRMSObmtz