Energy drinks have long been favorites of exam-weary college kids and Huber-man-inspired gym enthusiasts alike. But as the functional beverage space continues to heat-up, a new wave of energy drinks is breathing life into the category, bringing with it a broader, more diverse consumer base.
Traditionally, energy drinks have delivered exactly what’s promised on the label: a quick boost of energy, powered by high doses of synthetically sourced caffeine, paired with sugar and artificial flavorings. However, their short-lived surge often comes with a cost: jitters, the infamous crash, and growing concerns over adverse long-term health effects.
Consumer perceptions have reflected this. A 2019 Mintel study found that 66% of female consumers viewed energy drinks as both unhealthy and unnatural, compared to 45% of male consumers. This disparity in perception is mirrored in consumer demographics, with the category traditionally attracting a predominantly male audience.
Next generation
Today, a new generation of energy drinks are reshaping both the product landscape and consumer perceptions. Formulated with better-for-you ingredients such as natural caffeine and coconut water, and functional ingredients like ginseng and ashwagandha, these beverages offer a more holistic approach to fighting the mid-afternoon slump, focusing on hydration, mood improvement, and mental focus. In doing so, they are redefining what an energy drink can be. These better-for-you alternatives are quickly establishing themselves as category mainstays – this segment of energy drinks has seen the biggest increase in consumption between January 2023 and 2024, driven largely by the entry of young women into the category (Mintel, 2025).
Brands such as Alani-Nu are leading the charge. With sleek, social media friendly packaging, 200mg of caffeine, and added biotin (a vitamin that promises to support healthy hair and nail growth), the brand has become a viral success amongst millennial and gen-Z women. Similarly, Bloom Sparkling Energy - the new energy drink spin-off of the popular supplement powder brand with a strong social media following – features natural caffeine from green coffee extract, along with prebiotics, and apple cider vinegar.It touts benefits for mental focus and metabolism to cater to its young, health-focused, and mainly female demographic.
What’s Next
Younger women are poised to drive the next wave of growth in the energy drink category. To resonate with this audience, brands should continue to focus on flavor and functionality from natural, recognizable sources. According to recent Mintel GNPD data, brands targeting this demographic have found success with hybrid formats - particularly energy drinks that blend tea and coffee (Mintel, 2025). As specialists in the botanical and natural caffeine space, Finlays are well placed to support the next generation of energy drinks.
