American Transcendentalist Ralph Waldo Emerson is quoted for having said, “The only thing that can grow is the thing you give energy to.”
Today’s consumers often are turning to beverages to give them energy.
Jennifer Berndt, marketing manager for beverages at Cargill, Minneapolis, describes how consumers’ lifestyles impact the energy market.
“On-the-go consumers fuel the energy drink market,” she says. “Their fast-paced lives and demanding schedules feed demand for quick energy solutions like energy drinks. While sales dipped during the pandemic as consumers stayed home, the segment has regained its footing — albeit with a renewed emphasis on health and fitness.
“Reduced sugar, natural ingredients and flavor innovation are increasingly important as brands work to earn consumers’ purchase,” Berndt continues.
She notes that the energy drink market isn’t just driven by young, Generation Z consumers. Millennials and Generation X consumers also are looking for beverages with energy benefits.
With many consumers now moderating their caffeine intake to avoid disrupting sleep, there’s a rising demand for energy drinks that offer a balanced boost without compromising rest.
Linda May-Zhang, vice president of science and innovation at Blue California, Santa Margarita, Calif., suggests that consumers’ focus on health and wellness, and prioritization of sleep, is reshaping the energy market.
“With many consumers now moderating their caffeine intake to avoid disrupting sleep, there’s a rising demand for energy drinks that offer a balanced boost without compromising rest,” she says. “This shift has also fueled interest in more natural ingredients and botanicals, which are perceived as healthier alternatives to synthetic stimulants.”
Maria Stanieich, marketing manager at New York-based Kyowa Hakko USA, notes that, for years, the energy market has been focused on stimulants like caffeine, which comes with downsides like jitters, anxiousness, difficulty sleeping and what she calls “the inevitable crash.”
“Consumers are looking for energy ingredients and supplements that serve specific needs and are easily integrated into their lifestyles,” Stanieich says. “Specifically, they are looking for the ability to stay on task and be productive throughout the day without the downsides of caffeine. That’s why more are turning to non-stimulant ingredients or naturally occurring nutrients in the brain that can support mental energy when consumed as a beverage.”
Shifting toward natural energy
The move toward natural energy ingredients can be tied to consumer interest in cleaner, better-for-you products.
Blue California’s May-Zhang expresses such sentiments, noting that consumers are seeking alternatives to synthetic stimulants. Concerns surrounding sleep disruption, sugar content and artificial additives are leading consumers to beverages that offer a balanced, clean energy boost, she says.
“This demand is reflected in the market, where natural energy beverages are gaining traction, especially in convenience stores, as consumers prioritize products that align with their health and wellness goals,” May-Zhang explains.
She says that this shift is specifically revolutionizing the energy drinks market.
“Traditional energy drinks, often criticized for their sugar content and synthetic additives, are being overshadowed by a new wave of natural energy beverages,” May-Zhang notes. “Brands are innovating with clean-label products featuring nature-based ingredients. This evolution is also influencing consumer behavior in convenience stores, where nearly half of energy drink purchases occur, driving demand for healthier, natural options.”
Cargill’s Berndt says that the influence of consumers’ “natural ambitions” is evident in the ingredients that beverage-makers use in these drinks.
“Natural sources of caffeine, like guarana and green coffee bean extract, are finding their way into more formulas, alongside other plant-sourced ingredients,” she says. “Similarly, artificial sweeteners are falling out of favor, increasingly replaced by advanced stevia sweeteners that live up to consumer label and flavor expectations.”
Niki Kennedy, director of insights and content at Glanbia Nutritionals, Chicago, notes that disruptive brands in the energy drinks market are leaning into a more lifestyle approach to energy drinks.
“The step-change has driven a focus on ingredients with many of the up-and-coming market leaders leaning on ingredients like green tea extract, guarana root, guayusa extract and ginger root, as well as essential vitamins and minerals like vitamins B and C and magnesium,” Kennedy says.
The Glanbia expert shares that given consumers’ multi-dimensional energy needs, formulators have plenty of options to support those need states.
“Formulating with plant-based energy ingredients is the latest strategy to achieve a more natural label and experience,” Kennedy says. “Natural, plant-based sources of caffeine, such as green coffee, green tea extract and yerba mate, are increasingly being combined with other botanical energizers like ginseng, guarana and Rhodiola rosea.”
Kyowa Hakko’s Stanieich shares that the interest in natural energy ingredients has been strong in recent years and is continuing to grow, especially in the energy drinks category. The company recently conducted a survey of consumers in the United States who have purchased beverages, food or supplements to support their cognitive health.
“In fact, from that survey, we found that 46% of consumers have less mental energy now than they did before the pandemic and 75% of consumers are seeking sustained mental energy throughout the day, rather than short bursts of energy,” she states. “That means energy drinks can best show up by showing that they can truly help consumers improve and maintain mental energy.”
Bountiful benefits
In terms of the benefits of natural energy ingredients, experts share how such ingredients appeal to consumers looking for drinks that support brain health.
“While caffeine remains prevalent, alternative sources like green tea or coffee extract appeal to consumers who are wary of caffeine’s potential side effects,” Glanbia’s Kennedy says. “Consumer trends underscore a preference for natural, low-sugar options, with an emphasis on holistic health and vitality. Consumers looking for ingredients helping with mental energy and focus continue to rise and are recognized by athletes as being just as important as physical well-being.”
Kennedy notes that focus, cognition, mood and sleep — all subcategories of brain health — overlap with ingredients and products that target several areas. Key ingredients for mental energy include B vitamins, Panax ginseng and guarana, she adds.
Blue California’s May-Zhang says that L-TeaActive L-theanine is a popular natural energy solution. When combined with stimulants like caffeine, she explains that it adds a more balanced and sustained energy boost.
“L-theanine is known for its ability to promote relaxation without drowsiness, which can counteract some of the potential negatives of caffeine. … By modulating the stimulating effects of caffeine, L-theanine helps create a smoother, more focused energy experience, enhancing cognitive function and mental clarity without the typical side effects of caffeine alone,” May-Zhang notes.
Like Glanbia’s Kennedy, May-Zhang also says that natural caffeine sources are rising in popularity to meet consumer demand for healthier, more sustainable energy options.
Steve Fink, vice president of marketing at PLT Health Solutions, Morristown, N.J., shares that the adaptogen, Rhodiolife, offers a different type of natural energy as consumers “seek to create more balance in their lives.”
He also notes that Zynamite is an ingredient that supports multiple mental and physical performance benefits, including mental energy.
“The ingredient has been the subject of 10 clinical studies,” he says of Zynamite. “It is fast-acting and experimental, offering enhanced mental energy, improved workouts and recovery, targeting both brain and body.”
Kyowa Hakko’s Stanieich voices that it is important to consider non-stimulant ingredients like Cognizin citicoline, a nutrient found in cells.
“Many other cognitive health ingredients only enhance brain performance, but Cognizin provides brain performance as well as more comprehensive brain health support over time.”
She lists Cognizin’s benefits as the following:
- Assists in the ability to stay focused
- Supports focus to reduce errors while on task
- Aids in supplying the nutrition that helps you stay focused
- Promotes focus and attention, which may help support productivity
Formulation considerations
When working with natural energy solutions, there are certain factors beverage-makers must consider.
Cargill’s Berndt states that taste is one of the biggest challenges, because acidified beverages often contain multiple ingredients with difficult flavor profiles.
“On top of these hurdles, consumers are also looking for reduced, no-added or no-sugar products, formulated without artificial sweeteners, adding more complexity to flavor formulation,” she says.
Formulators attempt to balance out the acid while also covering the bitterness associated with energy-focused ingredients, which results in sweeter products, Berndt adds.
“Fortunately, improvements in stevia technology can help brands manage these flavor challenges,” she says. “Cargill’s most advanced sweetener system, EverSweet + ClearFlo, brings together our premier stevia sweetener with natural flavor. The resulting sweetener systems offers wide-ranging benefits that include flavor modification.”
Kyowa Hakko’s Stanieich lists challenges like stability, solubility, flavor, smell, texture, compatibility, regulatory compliance and cost considerations.
“These challenges can affect quality and consumer acceptance,” she says. “Cognizin is an ideal ingredient for beverages because it overcomes many of these challenges. It offers stability and rapid solubility, eliminating issues related to degradation and clumping. Moreover, Cognizin has no taste or odor, addressing flavor and smell concerns.”
PLT’s Fink describes how, in the past, energy drinks were all about packing in more ingredients into formulations. As the market matures, he says consumers are looking for a broader range of energy experiences and ones that do not come with overstimulation.
“Natural and non-stimulant energy has become increasingly attractive to consumers, particularly when it is plant-based and has science behind it,” Fink notes. “Finally, a more sophisticated approach to formulating energy centers on creating product specific, customized energy profiles that meet the need of particular situations and use applications — whether it is sports, pick-me-ups or late night study sessions. Use occasion is becoming an important factor in how energy benefits are delivered.”
Blue California’s May-Zhang says that, when formulating beverages with natural energy ingredients, it is important to consider synergy between ingredients, flavor profiles and the stability of the compounds used.
“Ensuring that these natural ingredients retain the efficacy and appeal throughout the product’s shelf life is crucial,” she states. “As consumers increasingly prioritize health and environmental values, clean labeling, transparency and sustainable sourcing have become more important than ever ...
“By carefully considering these factors, beverage-makers can create natural energy products that not only meet consumer demands for efficacy and sustainability, but also deliver a superior, clean-label product experience,” May-Zhang concludes.