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By Kathy Van Zyl, Regulatory Consultant
The market for beverages formulated to deliver a temporary mental or physical boost continues to grow, with a predicted category annual growth rate (CAGR) in 2025 of 6.8%. Products in this space are marketed under a variety of labels — energy drinks, energy shots, sports drinks, power beverages and isotonic or electrolyte drinks. These beverages come in a wide array of flavors, packaging sizes and formats, both in carbonated and still form. To capitalize on the popularity, let’s look at common energy drink ingredients and their functions.
Key Functional Energy Drink Ingredients
The most widely recognized performance enhancer occurs naturally in plants like coffee beans, tea leaves and cocoa beans. Caffeine acts on the brain to heighten alertness by blocking sleep-inducing neurotransmitters.
This amino acid occurs naturally in meat, dairy and fish, but most beverages use plant-based sources. It can aid in proper hydration and supports the general function of the nervous system.
A popular botanical ingredient sourced from plants and used in herbal medicine. Ginseng may help combat fatigue and improve overall energy levels. Additionally, it may assist in the regulation of blood sugar levels.
A fruit known for its high caffeine content and derived from seeds of the plant Paullinia cupana. It contains compounds that may help increase energy levels and alertness.
The herb is extracted from the leaves of the Ginkgo Biloba tree and is promoted for a variety of reasons, including cognitive health, although research is not conclusive on its benefits.
An amino acid mainly derived from red meat and other animal products, L-carnitine can also be synthesized from plant-based ingredients and added to assist in energy production in the body.
These vitamins are sourced from both animal and plant-based foods. They help to reduce fatigue and support vision and mental performance.
Sugar and Artificial Sweeteners
Whether simple or complex, sugars are ubiquitous components in many beverages. Ingredients such as sucralose and acesulfame potassium are sometimes included to replace some or all the sugar and to reduce calories.
Market Variations and Considerations for Beverage Developers
Alcohol-Containing Energy Drinks
Packaged alcoholic energy drinks remain controversial and have been banned in some countries and states due to safety concerns. Alcohol and caffeine can also counteract each other. The combination of alcohol (a depressant) and caffeine (a stimulant) can mask the perception of intoxication and increase health risks.
Responsible Marketing
When incorporating energy drinks into a diet, consumers — and the businesses serving them — should weigh potential side effects, daily intake levels and overall dietary patterns. The functional benefits must be balanced against possible risks, particularly when targeting markets with heightened health awareness or regulatory scrutiny. While many energy drink ingredients are natural and have legitimate functional benefits, excessive intake can lead to side-effects — especially in sensitive individuals.
Takeaway for Beverage Manufacturers
Beverage manufacturers should consider regulatory issues such as labeling requirements, caffeine limits, permissible claims, ingredient limits and alcohol–caffeine combinations when developing formulations. Innovation requires strong compliance considerations early in product development
When marketing energy drinks, food industry businesses should emphasize balanced consumption, align product profiles with target consumer lifestyles, and anticipate heightened scrutiny from regulators and advocacy groups. Positioning products as responsibly formulated can strengthen brand trust and market access in the growing and increasingly health-conscious marketplace of beverages.