Australia Energy Drink Market Size, Share and Growth Analysis Report: Forecast Trends and Outlook (2024-2032)

Australia Energy Drink Market Trends

The Australia energy drink market benefits from a growing base of health-conscious consumers demanding low-sugar, functional drinks. Innovations in flavours and natural ingredients cater to diverse tastes, while added vitamins and minerals enhance overall well-being. Energy drinks also provide convenient solutions for Australia's active lifestyles. According to the Australian Bureau of Statistics, the percentage of adults aged 18-64 meeting physical activity guidelines rose to 22.4% in 2022, up from 17.0% in 2017-18, boosting protein market growth as awareness of protein’s role in active living increases.

The Australia energy drink market growth is further supported by its appeal to younger, trend-driven consumers and athletes seeking hydration and performance benefits. Caffeine remains a key demand driver, while sustainability trends push the industry toward eco-friendly packaging. Customisation options, such as nootropics and amino acids, address specific consumer needs, driving further market growth. In March 2023, V Energy launched an organic, sugar-free drink in Australia, targeting health-conscious consumers. The product blends organic ingredients with caffeine for a natural energy boost, catering to an eco-aware audience.

Australia Energy Drink Market Growth

The demand of Australia energy drink market is growing, driven by their availability across a variety of retail channels, including supermarkets and gyms. Premium offerings, such as organic or sugar-free options, cater to health-conscious consumers. As consumer awareness of functional ingredients increases, demand rises, while Australia’s growing disposable income supports spending on higher-end products. Frequent product launches keep the market competitive and evolving. In April 2023, Monster Energy introduced a new line of sugar-free drinks in Australia. Responding to the rising demand for healthier energy alternatives, this range provides the signature Monster boost without the added sugar, appealing to fitness enthusiasts and health-focused individuals.

Collaborations with sports teams and influencers are enhancing brand visibility and influencing the Australia energy drink market dynamics and trends. Meanwhile, the rising demand for healthier options is prompting innovation in caffeine-free and naturally energising products. Global trends are also impacting local consumer preferences, increasing interest in both international and local brands. Compact, portable packaging aligns with Australia’s active lifestyle, while heightened competition within the market encourages innovation, offering consumers a wider range of choices and more competitive pricing.

Australia Energy Drink Market Insights

• In 2020-21, the Australian Bureau of Statistics reported total food and non-alcoholic beverage sales of 14.7 million tonnes across retail outlets.
• The Australian Bureau of Statistics recorded a 6.2% rise in non-alcoholic beverage sales in 2020-21, equating to an average increase of 22.5 grams per day.
• According to the Department of Health and Age Care, around 13 million adults and 3 million children engage in sports annually.
• Energy drink shots are projected to grow at a CAGR of 5.9% between 2024 and 2032.  
• Online sales and supermarkets and hypermarkets are anticipated to expand at CAGRs of 7.3% and 5.9%, respectively, during the 2024-2032 forecast period.
• The Australian Capital Territory is forecasted to experience a CAGR of 6.4% during the same period.  
• The Victoria market share is expected to see a significant growth rate of 23.2% CAGR between 2024 and 2032.

Industry News

August 2023

Straight Up Energy, an Australian-owned brand entered the energy drink market with a range of new flavours: Green Apple, Mango, Passionfruit, and Watermelon Pineapple. The brand aims to bring authenticity to the market while offering local retailers stable pricing and distribution, countering the influence of global ownership.

February 2023

Waterdrop Microdrinks launched in Australia, backed by tennis star Novak Djokovic. These concentrated dissolvable cubes enhance water with flavours and functional ingredients like vitamins and electrolytes. Offering a healthier, more sustainable alternative to sugary drinks, Waterdrop targets health-conscious consumers looking for convenient, functional hydration options.

Australia Energy Drink Market Drivers

Innovation in Flavours and Ingredients

The Australia energy drink market is experiencing an increase in flavour innovation and the introduction of new ingredients. As consumers look for variety and fresh experiences, brands are experimenting with unique flavour blends, incorporating exotic fruits, herbs, and spices. Additionally, functional ingredients like nootropics, adaptogens, and amino acids are being used to address specific needs such as boosting focus, reducing stress, and improving physical performance. This trend not only satisfies changing consumer preferences but also attracts health-conscious individuals seeking personalised, wellness-oriented options. The market is becoming more diverse, catering to a broad range of lifestyles. In December 2023, AMP Energy launched a low-calorie range in Australia, combining bold flavours with its signature energy blend to meet the growing demand for healthier, low-calorie alternatives.

Sustainability and Eco-friendly Packaging

Sustainability has emerged as a major trend in the Australia energy drink market, with brands responding to growing consumer demand for eco-friendly products. This includes efforts to reduce carbon footprints, use recyclable or biodegradable packaging, and source ingredients sustainably. As environmental awareness increases, more consumers are favouring brands committed to reducing their environmental impact. Some companies are also focusing on sourcing local ingredients to reduce transportation emissions. This shift aligns with global sustainability trends and provides a competitive edge for brands prioritising eco-friendly practices, resonating with eco-conscious Australian consumers. In November 2023, Guayaki Yerba Mate launched its Sustainable Energy Drink in Australia, known for its sustainably sourced yerba mate leaves and eco-friendly packaging, aiming to attract consumers seeking organic, fair-trade ingredients and a clean energy boost.

Opportunities in the Australia Energy Drink Market

Premiumisation and Health-Conscious Positioning

The Australia energy drink market growth is driven by a rise in premium, high-quality offerings. Brands are increasingly focusing on health, purity, and sustainability, with products featuring organic, gluten-free, sugar-free, and low-calorie formulations to attract affluent, health-conscious consumers. This shift towards premiumisation reflects a growing readiness to invest in products that align with personal values and health goals. Furthermore, brands are prioritising transparency, with clear labelling and ingredient sourcing to build consumer trust, appealing to those seeking clean, high-performance beverages that support a healthy lifestyle. According to the Department of Health and Age Care, sports play a vital role in the economy, generating around USD 32 billion in annual sales and supporting 128,000 jobs.

Market Restraints

The Australia energy drink market faces several challenges that could impact its growth. Health concerns over high caffeine and sugar content have led to increased regulatory scrutiny and calls for healthier products, which may affect market appeal. Intense competition and market saturation limit growth potential, requiring brands to differentiate. Rising costs of raw materials, particularly natural ingredients, and supply chain disruptions add pressure on production costs.

Negative public perception, especially among younger consumers, could hinder growth, while economic downturns and inflation may reduce demand for premium products. Environmental concerns around packaging and regional cultural preferences further complicate the market, limiting its broader appeal beyond younger consumers.

Australia Energy Drink Industry Segmentation

“Australia Energy Drink Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Drinks
• Shots
• Mixers
• Others

Market Breakup by Packaging Type

• Bottles
• Cans

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Stores
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Energy Drink Market Share 

By Types Insights 

According to the Australia energy drink market analysis, energy drink is projected to grow at a CAGR of 6.3% from 2024 to 2032. This growth is driven by energy drinks that deliver immediate energy boosts from caffeine, along with functional ingredients like electrolytes and vitamins that enhance focus, reduce fatigue, and aid hydration. Their portable packaging makes them perfect for busy Australians, including professionals, students, and fitness enthusiasts, offering a convenient solution for energy and hydration on the go. In September 2023, Hydralyte Energy was launched in Australia, combining natural caffeine and electrolytes to provide sustained energy and hydration, targeting active consumers, athletes, and fitness enthusiasts seeking a functional performance-optimising drink.

The Australia energy drink market share is further supported by the growing popularity of energy drink mixers, which add a refreshing and energising twist to cocktails. These mixers enhance the alcohol experience by providing unique flavours and an energy boost, making them a preferred choice for partygoers wanting to stay alert without sacrificing taste. In November 2023, Powerade introduced its Energy Mixer range, combining the brand’s hydration benefits with added energy from caffeine and electrolytes. This new line is designed for Australians seeking a healthier energy mixer to pair with alcohol, offering both hydration and energy in one drink.

By Product Type Analysis

According to the Australia energy drink market report, non-alcoholic energy drinks hold a significant market share, offering a healthier alternative to sugary or alcoholic drinks. These beverages provide energy boosts from natural ingredients such as caffeine, electrolytes, and vitamins, appealing to a wide range of consumers, including students, professionals, and active individuals. They offer energy and focus without the risks associated with alcohol, making them suitable for all age groups. In March 2023, Bolt24, a new non-alcoholic energy drink, was launched in Australia. It contains electrolytes, antioxidants, and natural caffeine, offering a revitalising energy boost without added sugars. Targeting active consumers, Bolt24 is ideal for those seeking hydration, refreshment, and sustained energy without the crash.

The Australia energy drink market is further supported by alcoholic energy drinks, which combine caffeine and alcohol to offer an energising, functional alternative to traditional alcoholic beverages. These drinks are popular for socialising, helping consumers stay alert during events or parties. Ready-to-drink and convenient, they eliminate the need for mixing, making them a preferred choice for partygoers seeking both energy and alcohol in a single can. Four Loko, a well-known alcoholic energy drink brand, launched in Australia in August 2023. Combining malt liquor with caffeine and taurine, it provides a strong energy boost alongside alcohol. The launch aims to cater to partygoers seeking a high-energy, fun alternative to traditional alcoholic drinks.

By Packaging Type Insights

Bottles in the Australia energy drink market are in high demand due to their convenience, portability, and durability, making them ideal for consumers on the move. Reusable bottles attract eco-conscious buyers and promote sustainability. Bottled drinks often come in larger sizes, offering better value for those needing sustained energy and hydration throughout the day, such as during work or exercise. In May 2023, Nuzest launched its Clean Energy drink in 500ml bottles across Australia. Featuring natural caffeine, coconut water, and vitamins, it provides long-lasting energy and hydration, targeting health-conscious individuals looking for a clean and functional alternative to traditional sugary energy drinks.

Cans in the Australia energy drink market are growing in popularity due to their portability, lightweight nature, and ease of use, making them perfect for busy consumers who need a quick energy boost. Their efficient design facilitates transport and storage, and many brands use recyclable aluminium, appealing to eco-conscious Australians and supporting sustainability in the industry. In September 2023, Relentless launched a new range of energy drinks in 500ml cans in Australia. These drinks, which combine caffeine, taurine, and B vitamins, are designed to provide an energising and refreshing experience, catering to consumers seeking functional beverages during long working hours or social events.

Australia Energy Drink Market Regional Insights

New South Wales Energy Drink Market Regional Insights

New South Wales (NSW) has a broad and varied consumer base, with strong demand for energy drinks, driven by the fast-paced urban lifestyle. New South Wales is expected to grow at a CAGR of 4.5% between 2024 and 2032. The market benefits from significant youth engagement and a high number of active professionals, ensuring steady consumption for hydration and focus. According to Sport Australia (2023), NSW boasts over 2.5 million people participating in organised sports. Rugby, AFL, and cricket are particularly popular, contributing to a vibrant sporting culture that drives energy drink consumption for performance and recovery.

Queensland Energy Drink Market Trends

According to the Australia energy drink industry analysis, Queensland’s hot climate and active outdoor lifestyle drive the demand for energy drinks that offer both hydration and energy boosts. Queensland is expected to grow at 5.0% CAGR during the forecast period. Drinks containing electrolytes are especially favoured for outdoor pursuits such as surfing and hiking. Sport Australia (2023) reports over 1.5 million Queenslanders engage in regular physical activity. Rugby league, soccer, and swimming are major sports, driving demand for performance-enhancing beverages.

Western Australia Energy Drink Market Dynamics

Western Australia (WA) is experiencing growth in Australia energy drink market, driven by urban areas and the outdoor lifestyle of regional regions. The demand for hydration and energy during activities like mining, hiking, and surfing is high. Sport Australia (2023) states that WA has over 900,000 sports participants, with football, cricket, and basketball being the most popular. Regional sporting activities also contribute to the consumption of energy drinks.

Competitive Landscape

The Australia energy drink market key players offer a wide range of beverages, including soft drinks, juices, bottled waters, teas, coffees, and energy drinks. Alongside its famous cola, the company owns several popular brands, such as lemon-lime soda, orange drinks, fruit juices, and sports drinks. The company prioritises innovation and sustainability, with initiatives aimed at reducing carbon emissions, conserving water, and improving packaging sustainability. In recent years, it has expanded into the energy drink category, launching new products to cater to the growing demand from health-conscious and active consumers.

Key Industry Players

Red Bull GmbH: Established in 1987, Red Bull GmbH is an Austrian company headquartered in Fuschl am See, Austria. It is best known for its energy drinks, particularly Red Bull, which revolutionised the energy drink industry. The brand focuses on sports sponsorship, extreme events, and youth culture to promote its products globally.

PepsiCo, Inc.: Founded in 1965, PepsiCo, Inc. is an American multinational corporation based in Purchase, New York. PepsiCo is one of the world’s largest beverage and snack companies, owning popular brands such as Pepsi, Mountain Dew, and Gatorade, as well as a growing portfolio of energy drinks and functional beverages.

Monster Beverage Corporation: Established in 1935 and headquartered in Corona, California, Monster Beverage Corporation is a leading manufacturer of energy drinks. Known for its Monster Energy brand, the company has expanded into various energy drink categories, offering a range of products targeting sports enthusiasts and young, active consumers globally.

The Coca-Cola Company: Founded in 1892 and headquartered in Atlanta, Georgia, The Coca-Cola Company is a global leader in beverages, with a vast portfolio that includes soft drinks, juices, teas, and energy drinks like Monster Energy (via acquisition). It operates in over 200 countries, shaping the global beverage market.

Another key player in the Australia energy drink market report is Red Eye Energy Drink, among others. 

Recent Developments

January 2024

NoBull Energy made its debut in Australia, positioning itself as a healthier energy drink alternative. It highlights natural, plant-based ingredients, with caffeine sourced from green tea and yerba mate. The brand targets Australians who seek functional hydration without artificial additives.

November 2023

Red Bull introduced its limited-edition Summer Edition in Australia, featuring tropical flavours while maintaining its signature caffeine-powered energy formula. This new drink is aimed at younger consumers looking for a refreshing and energising option during the summer, supported by extensive marketing campaigns and promotions.