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Energy drinks, which had very strong sales last year, are expected to do very well in c-stores again this year, with a few changes. Retailers can see changes in caffeine levels and shoppers are more likely to consider alternative beverages within the channel to boost their energy levels.
C-store energy drink sales soared 10% to more than $16 billion in the fiscal year ending December 31, 2025, with unit sales up 8%, according to Circana data.
According to Datassential, energy drinks have reached an all-time high in market share, growing steadily from 1.3% of c-store sales in 2019 to 2.4% by the third quarter of 2025.
Circana data for all types of retailers, including e-commerce and convenience stores, shows that both familiar, popular and new brands contributed to unit sales growth.
“Emerging brands saw a stronger growth rate trend, albeit from a smaller base, while established brands continued to drive the majority of category volume,” said Sally Lyons Wyatt, Circana’s Global Vice President and Chief Advisor for Consumer Packaged Goods and Foodservice Insights.
The rise of energy drinks stems from a confluence of factors. According to Datassential, most consumers purchase energy drinks because they feel these drinks provide the best energy boost. Other notable reasons include liking the taste, making an effort to treat yourself, and affordable prices.
“Younger consumers are much more likely than older consumers to choose energy drinks because they enjoy carbonation,” the Datassential report added.
Energy boundaries are becoming blurred
While the overall outlook for energy drinks is positive, one emerging headwind is what Lyons Wyatt calls the blurring of beverage boundaries.
“Products outside the traditional energy sector are incorporating functional ingredients that provide energy-like benefits, placing new competitive pressures on traditional energy brands,” she explained.
One example is caffeinated water, a functional beverage that is increasingly replacing energy drinks for some consumers. According to Datassential, approximately 34% of consumers reported drinking less energy drinks due to this alternative.
Functional flavored waters are considered healthier alternatives, with 29% of consumers saying they replace energy drinks in their beverage of choice.
The shift in energy drink formats was evident at the NACS show last October. Anheuser Busch has introduced Phorm, an energy drink created in collaboration with sports nutrition company 1st Phorm. Clean ingredient energy drink manufacturers such as Bloom and King Kongin also introduced their flavors.
Additionally, MoJo has introduced a line of flavored caffeine pouches that provide 50 mg of caffeine and come in flavors like sour apple, mint, and peach watermelon.
MoJo caffeine pouch advertisement displayed at the booth at the 2025 NACS show in Chicago.
Jessica Loder/C-Store Dive
Focus on taste and caffeine intensity
Caffeine is important to energy drink manufacturers, but not as important as taste, according to Datassential. According to Datassential, 75% of consumers consider caffeine when choosing an energy drink. Other key considerations consumers take into account when choosing an energy drink include functional ingredients, size of the can, and whether it is low in sugar or contains no artificial sweeteners.
“Clean labels,” or products containing fewer and fewer natural ingredients, are expected to continue to be popular in the energy drink space this year, but adoption will not be universal, according to Lyons Wyatt.
“Some brands may lean toward cleaner formulations, while others may maintain their current ingredient profiles based on functionality, cost, or brand positioning,” she said.
Personalization comes to energy drinks
Circana also predicts that as beverages continue to be tailored to specific consumer needs and time frames, suppliers will further customize caffeine levels.
“As brands continue to innovate around diet-based, activity-based and situation-based uses, we are likely to see greater differentiation in caffeine content across energy drinks and adjacent beverage categories,” Lyons Wyatt emphasized.
Some companies, such as 7-Eleven, have looked to private labels to gain more clout in energy drinks.
Provided by 7-Eleven
Lyons Wyatt said the shelf-stable energy drinks category is expected to continue growing in 2026, primarily driven by the strength of energy drinks and beverage mixes.
She said the category will expand as long as CPGs that own these beverages invest in social and digital media and retail promotions along with innovations that spark consumer interest.
In particular, AI-based targeting will increasingly help brands reach the right consumers, especially young shoppers and female consumers, with the right message, maximizing the return on their marketing spend. The rise of retail media in the c-store space could support these efforts.
“As support levels ease, category growth may continue, but at a slower pace than we have seen over the past two years,” Lyons Wyatt said.
