Energy foods and beverages are evolving at an energetic pace to match consumer demand.

And it’s interesting to review this category’s history and behind-the-scenes ingredient shifts. A generation or so ago, energy was strongly linked to B vitamins because several B vitamins function within the body’s energy-generating cycles. Consumers looked for foods, beverages and vitamin supplements with one or more “energy boosting” vitamins.

Today, Innova Market Insights finds energy products targeting two different need states: short term and long term. Short-term energy fixes incorporate stimulants such as caffeine, guarana, and ginseng; or amino acids such as taurine, which participate in energy cycles. By contrast, other long-term products take a more holistic approach to diet and foods that support energy.

One of Innova’s Top 10 Trends for 2023, “Unpuzzle Health,” focuses on consumer interest in understandable communication that reinforces a product’s health messages. Product labels with easy-to-understand messaging can help educate consumers about nutrition and functional benefits, including energy, as an example.

Another 2023 trend, “Generational Push,’ showcases the differences in attitudes toward foods and beverages with each demographic group. Gen Z and Millennial consumers seek positive engagement, new experiences and two-way communication about product features that most interest them—including energy claims.

Let’s dive deeper into consumer attitudes and behaviors around energy and then take a closer look at launch trends.

Consumers look for health, energy

Every year, Innova surveys consumers about their priorities and purchasing behaviors. When we asked US Lifestyle & Attitudes Survey respondents about what’s most important to them in a healthy food or beverage, they named ingredients known to boost health as a key feature. They also said their related healthful eating actions include choosing foods and beverages with convenient, quick energy-boost solutions. Are they willing to pay more for functional ingredients? A solid percentage says yes to ingredients that enhance physical health.

Our annual Health and Nutrition Survey focuses specifically on consumer actions and attitudes around health. In 2021, we asked consumers about the steps they took to improve energy levels during the past year. The highest percentages said that they stayed hydrated and exercised regularly. Clearly this demonstrates a change in knowledge, understanding, and action when compared to a generation ago.

Additionally, one-third of those we surveyed in the US believe that functional foods and beverages can give both long-lasting and short-term energy. However, product purchasing lags behind belief for both long-lasting and short-term energy. We believe this opens the door of opportunity for manufacturers to reach consumers who believe in energy benefits but who have not yet translated that belief into action at the point of purchase.

Energy also is a top priority during the aging process. One-third of US consumers tell us that maintaining energy levels is the most important aspect of healthy aging. That said, we are not surprised to see behavior differences among generations. Gen Z and Millennial respondents are the leading purchasers of products for short-term energy, according to our 2023 Health & Nutrition Survey.  

Functional ingredients for energy and alertness

Innova monitors product claims related to energy and alertness. It’s clear from labels that the related functional ingredients go well beyond caffeine, the classic stimulant associated with energy.

Green tea extract contains polyphenols and L-theanine, which, in addition to caffeine, are associated with improvements in cognitive performance. L-theanine is a nootropic, non-protein amino acid shown to help caffeine work its brain-boosting charm without raising blood pressure or inducing anxiety. Another nootropic, rhodiola rosea, is promoted to increase energy, stamina, strength and mental capacity, improve athletic performance, resist the effects of stress, and help manage depression, anxiety and other symptoms.

The African bark yohimbe is said to stimulate the sympathetic nervous system and activate the body’s “fight or flight” response. Another ingredient, medium-chain triglyceride oil (MCT), typically is extracted from coconut oil or palm oil and is broken down by the liver for fuel or storage as body fat. MCTs also can provide energy for exercise before the liver breaks them down.

Energy drinks a leading category 

North America ranks second in the world for energy drink launches and is the biggest energy drink market, as measured by sales value. Fueling North American product launches are beverages powered by plant protein, new options crafted with organic nootropics and adaptogen blends, and even functional drinks infused with hemp. New offerings range from those that tout cross-category flavor appeal (such as Skittles-flavored energy drink) to those reformulated to be cleaner without artificial colors, flavors and low/no sugar content.

“Energy and alertness” is among the top health claims in functional beverage launches in the US and Canada. Moreover, this claim takes an increasing share of total functional beverage launches each year. About one in seven consumers says they buy and/or desire products with short-term energy functional benefits. And these numbers are at higher levels among younger generations.

Innova also tracks the health claims that appear on energy-related products. Most recently, these top related claims pertain to calories, carbohydrates and sugar reduction; digestive health, including gluten free; and clean claims such as no additives and GMO free. Interestingly enough energy drink flavors tend to feature fruit—including watermelon, mango, orange, lime, berry, punch, lemonade, red grape, and pineapple.

Because beverages are a big target category for energy benefits, we wanted to learn more about consumers’ energy drink behaviors. For starters, our 2023 Category Survey found that nearly one-third of US consumers purchased energy drinks during the past 12 months. Energy drinks surpassed meal replacement drinks, functional waters, and sports and functional drinks. It is interesting to contrast purchasing behavior with usage. Soft drinks account for nearly three-quarters of new energy and alertness products but energy claims have the highest penetration in sports drinks.

We also find it interesting that the highest proportion of consumers surveyed in the US consume energy drinks no more than a few times a month, in contrast to functional waters and meal replacements, where a majority of consumers in the US and Canada drink them at least once a week. These numbers are a bit puzzling since consumers report more frequent purchases but less frequent use of energy drinks. This suggests an opportunity to encourage users to consume energy drinks more regularly.

Purchasing influences also differ. Purchasers of energy drinks say that vitamin and mineral claims most influence their purchasing decision when buying energy drinks. In contrast, sports nutrition purchasers say that protein and functional ingredients are most important.

Cereal, energy bars are popular in North America

North America is the region with the highest share of launches of cereal and energy bars in the cereals category. The region accounts for a stable 61% share of total global cereal and energy bars sales value tracked from 2018 to 2022F.

The boom in functional granola bars with ingredients linked to energy is consistent with the interest of three in 10 US consumers who say they turn to cereal and energy bars to give them energy and keep going. When shopping for cereal and energy bars, US consumers also look for protein, fiber, and “real” ingredients. While nearly all snack bar launches carry at least one nutrition claim, consumers have limited choices for energy since only a small percentage of snack bars technically are energy bars. That said, the calories and macronutrients in all snack bars provide energy.

Consumers likely will continue looking for energy

We see several growth areas for manufacturers. For example, there are only a small number of dairy drinks positioned for energy and alertness. A dairy drink with energy benefits could appeal to certain consumers, possibly those already drinking flavored milk for hydration. Someone could create a more holistic product that supports energy in a calming way. This product could combine ingredients with emotional and cognitive functionality as well as those for energy and alertness.

As consumers’ lives become more complicated and they strive to fit more into busy days, they may become even more open to various types of foods and beverages that deliver more energy and better health.