Allied Market Research's analysis report stated the the global energy drinks market was valued at $45.80 billion in 2020. Energy drinks include a high concentration of stimulants, primarily caffeine and ginseng. One of the primary reasons for the growth of the energy drinks market is the popularity of energy drinks that improve physical performance as well as mental alertness.
According to The Brainy Insights, the energy drinks industry will increase at an 8.1% CAGR between 2022 and 2030. It is projected that the demand for energy drinks would increase due to the increased need for hydration and fast energy beverages among working professionals and sports. Additionally, the growing consumer focus on all-natural and organic ingredients is probably going to increase the market for organic energy drinks in the years to come.
In the United States alone, the Sports and Energy Drinks industry was worth $27.9 billion in 2020. In China, the world's second biggest economy, the industry is expected to reach a market size of $33.7 billion by 2027, with a CAGR of 10% from 2020 to 2027.
A analysis report released earlier this year states that North America was the largest area in the energy drinks market in 2021. Asia Pacific is predicted to be the fastest-growing region during the forecast period. The report also revealed that many energy drink companies are introducing new flavors to attract new customers and increase sales. For example, in April 2021, Red Bull, one of the multinational energy drink manufacturers and suppliers, introduced Coconut Edition Sugar-free energy drinks in 25cl and 35cl cans. In June 2020, PepsiCo, Inc. (NYSE:PEP), an American multinational food and beverage corporation, acquired Rockstar for $3.86 billion. This purchase adds to PepsiCo's energy drink portfolio, broadens its global footprint, and accelerates growth in the functional beverage area.
Among the most popular energy drink firms are Monster Beverage Corporation (NASDAQ:MNST), PepsiCo, Inc. (NYSE:PEP), and The Coca-Cola Company (NYSE:KO).
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Methodology
We picked the most famous and largest energy drink companies in the world and ranked them by their market caps in an ascending order.
Zevia Pbc (NYSE:ZVIA) is a beverage business that develops, promotes, sells, and distributes different carbonated and non-carbonated soft drinks in the United States and Canada. It sells soda, energy drinks, healthy tea, mixers, kids beverages, and sparkling water. Zevia Pbc (NYSE:ZVIA) is well-known by its energy drink called Zevia Energy, which is a zero-calorie energy drink available in 4 flavors.
On February 22, BMO Capital analyst Andrew Strelzik reduced the his price objective for Zevia Pbc (NYSE:ZVIA) from $18 to $13 and maintained an Outperform rating on the stock. The company's Q4 2021 EBITDA disappointed investors owing to worse sales and margins, according to the analyst in a research note, who also lowers his EBITDA forecast due to incremental industry-wide inflationary pressures and brand building efforts. Longer term, Strelzik sees Zevia as a "strong growth vehicle" with a solid strategy, a number of growth levers, and margin upside over time.
In June, Zevia Pbc (NYSE:ZVIA) announced leadership changes. Analysts believe the new management will speed the company's return to profitability. Zevia's revenue increased 47% compounded from 2008 to 2021.
According to Insider Monkey's data, 3 hedge funds were long Zevia Pbc (NYSE:ZVIA) in Q3, down from 7 funds in the prior quarter. Anthony Bozza's Lakewood Capital Management is the largest shareholder of the company owning 277,873 shares worth around $1.2 million.
National Beverage Corp. (NASDAQ:FIZZ) develops, produces, promotes, and sells a range of sparkling waters, juices, energy drinks, and carbonated soft drinks primarily in the United States and Canada through its subsidiaries. National Beverage Corp. (NASDAQ:FIZZ) is the manufacturer of the well-known energy drink called ZipFizz.
On September 12, UBS analyst Sean King reduced his price objective on National Beverage Corp. (NASDAQ:FIZZ) to $42 from $43 and maintained a Sell rating on the stock. The company's first-quarter results were "difficult," with higher cost pressures causing a significant miss on gross margin, according to the analyst in a research note. King adds that he is still wary of the stock because of trade-down worries.
Jim Simons' Renaissance Technologies is the leading stakeholder of National Beverage Corp. (NASDAQ:FIZZ) with 3.83 million shares valued at around $147 million. According to Insider Monkey's database, 9 hedge funds were bullish on National Beverage Corp. (NASDAQ:FIZZ) in Q3, a decrease from 10 funds in the preceding quarter.
Dutch Bros Inc. (NYSE:BROS) is an Oregon-based corporation that franchises drive-thru restaurants. Hot and cold espresso beverages, cold brew coffee products, Blue Rebel energy drinks, tea, lemonade, smoothies, and other beverages are available from the brand. Dutch Bros Inc. (NYSE:BROS) is the company that manufactures the famous Rebel drink, a sugar-free energy drink.
Dutch Bros Inc. (NYSE:BROS) had 641 outlets at the end of Q3, with 138 opening in the previous year. Dutch Bros opened a record 38 locations in the third quarter, with at least 30 openings in each of the previous five quarters. On November 9, Dutch Bros Inc. (NYSE:BROS) reported earnings for the third quarter of 2022, posting earnings per share of $0.09, above market expectations by $0.01. The revenue for the quarter was $198.65 million, gaining 53.0% from the same time previous year and above market expectations by $3.87 million.
After the business reported "strong" Q3 same-store sales and restated FY22 EBITDA projections, Jefferies analyst Andy Barish on November 10 reduced the his price objective on Dutch Bros Inc. (NYSE:BROS) to $45 from $55 and maintained a Buy rating on the shares. Barish raises his unit growth predictions for FY23/FY24, but adds his lower objective reflects the market's "condition of growth multiple values."
As of Insider Monkey's Q3 data, 13 hedge funds hold Dutch Bros Inc. (NYSE:BROS), an increase from 4 hedge funds in the previous quarter. Driehaus Capital, led by Richard Driehaus, owns 256,096 shares worth more than $14 million.
Celsius Holdings, Inc. (NASDAQ:CELH) is a beverage firm established in Florida that produces carbonated and non-carbonated functional energy drinks, liquid dietary supplements, flavored beverages, and portable drinkable packages and canisters. Celsius Holdings, Inc. (NASDAQ:CELH) is popular as the developer of Celsius Heat and Celsius Live Fit energy drinks.
On November 23, The Professional Fighters League signed a multi-year agreement with CELSIUS Essential Energy to become the PFL's Official Energy Drink Partner. CELSIUS will hold naming rights to the VIP Cageside Club, and the victor of each bout will consume the energy drink inside the PFL SmartCage at every event, commencing in 2023. In addition, CELSIUS will work with select PFL world-class fighters who are also CELSIUS customers to act as brand ambassadors.
After the Q3 results, B. Riley analyst Jeff Van Sinderen on November 10 raised his price target on Celsius Holdings, Inc. (NASDAQ:CELH) to $140 from $130 and maintained a Buy rating on the stock. According to the analyst, Celsius will continue to outperform the competition and "point to a long runway for growth ahead, likely aided by the PepsiCo distribution partnership."
Insider Monkey's Q3 hedge fund data reveals that 22 were long Celsius Holdings, Inc. (NASDAQ:CELH), up from 21 funds in the previous quarter. Richard Driehaus' Driehaus Capital is a significant shareholder of Celsius Holdings, Inc. (NASDAQ:CELH) owning 801,288 shares worth around $72 million.
Suntory Beverage & Food Limited produces and sells alcoholic and non-alcoholic beverages and foods in Japan, Europe, Asia, and the Americas. Under various brands, it provides mineral water, coffee drinks, tea drinks, carbonated drinks, sports drinks, and food for specific health purposes. The firm is most famous for manufacturing V, an energy drink that is most popular in Japan.
The company's sales target for 2030 is ￥2.500 billion, or $18 million, implying an 8% YoY CAGR for FY 2020-2030. Suntory Beverage & Food Limited generates more than 60% of its revenue in Japan and roughly half of its EBITDA.