I’ll introduce Top 3 Fast-Growing Beverage Brands that have captured the hearts of the younger generation. These brands are leading the charge in the market with their innovative approaches: Celsius, known for pioneering the healthy energy drink market; Liquid Death, which sells canned water; and Athletic Brewing Co., a non-alcoholic beer maker. Let’s explore what makes these brands so popular and why they’re worth watching.
Today, let’s start by looking at Celsius.
Celsius
According to Piper Sandler’s “Taking Stock With Teens” survey, Celsius has emerged as the most favored energy drink brand among teenagers. Celsius Holdings, Inc. is an energy drink company committed to promoting a healthy and active lifestyle. Founded in 2004, Celsius develops beverages that provide the energy needed for both workouts and daily activities. The company’s mission is to offer healthy energy drinks made with natural ingredients.
What Products Does Celsius make?
Celsius offers a variety of energy drinks in different flavors and forms, organized into three main product lines: CELSIUS & CELSIUS Vibe, CELSIUS Essentials, and CELSIUS On-The-Go. The features, caffeine content, and prices of each product are as follows.
CELSIUS & CELSIUS Vibe: This is the core product line, designed to boost energy levels before, during, or after workouts, as well as throughout the day. Each can contains 200 mg of caffeine, comparable to a 20 oz Starbucks Venti Iced Americano. This high caffeine content provides a significant energy boost, making it ideal for maintaining energy throughout the day. The retail price of Celsius ranges from $2.18 to $2.49.
CELSIUS Essentials: These high-caffeine energy drinks are perfect for intense workouts, providing a powerful energy boost with 270 mg of caffeine per can. This extra caffeine makes Essentials a go-to choice for those needing an additional push during high-intensity training sessions. The retail price of Celsius Essentials ranges from $2.48 to $2.89.
Celsius On-The-Go: Offered in powder form, these drinks are easy to mix with water, making them convenient for consumption anywhere, anytime. Each packet contains 200 mg of caffeine, providing the same energizing effect as the core product line. This makes it easy to stay energized on the move. The retail price of Celsius drink powder ranges from $9.99 to $12.99 for 14 packets.
What Makes Celsius Different, Why Is Celsius Popular?
Celsius precisely appeals to customers looking for healthy and natural energy drinks. Health and Wellness trends are driving zero-sugar adoption in purchase decision. Several factors set Celsius products apart, contributing to their popularity among consumers:
- Natural Ingredients: Celsius uses natural ingredients such as green tea extract, caffeine, ginger, Vitamin C, and B vitamins. The absence of artificial preservatives and colors makes it a healthier choice.
- Health Benefits: Beyond providing energy, Celsius drinks aim to enhance metabolism, reduce body fat, and improve exercise performance. These benefits are supported by multiple clinical studies.
- Variety of Flavors and Options: Celsius offers a wide range of flavors and options, allowing consumers to choose according to their preferences. Popular flavors include Sparkling Orange, Sparkling Wild Berry, and Sparkling Strawberry Lemonade.
- Sugar-Free and Low-Calorie: Most Celsius products are sugar-free and low in calories, making them ideal for health-conscious consumers, those managing their weight, or those reducing sugar intake.
When looking at user reviews of Celsius, many users appreciate the variety of flavors, particularly Sparkling Orange, Wild Berry, and Peach Vibe. Recently, Peach Mango Green Tea Celsius has been gaining popularity. Users often highlight the refreshing and delicious taste without any artificial aftertaste. However, some users find the price a bit high.
What Are Celsius’s Growth Rate and Company Value?
Energy Drink Market Growth
- Global energy drink category sales have increased at a 9% CAGR since 2018.
- The energy drinks market size is expected to see strong growth in the next few years at a compound annual growth rate (CAGR) of 7.5%.
- This growth is fueled by a surge in demand for health-focused beverages, particularly among younger consumers and athletes who seek enhanced performance and stamina
Celsius’s Market Share
- Celsius has made significant strides in the energy drink market, leveraging strategic partnerships and innovative product offerings to capture market share from established competitors like Monster Beverage and Red Bull.
- As of 1Q 2023, Celsius holds a 11.4% share of the US energy drink market.
- As of 2023, Celsius holds a 7.4% share of the US energy drink market, up from 2.6% the previous year. This rapid growth places Celsius as the third-largest player in the market, following Monster Beverage (37.4%) and Red Bull (34.5%).
- Notably, on Amazon, Celsius leads with a 21.4% market share, outperforming both Monster (18.6%) and Red Bull (13%).
Sales Growth and CELH Stock Overlook
Celsius has achieved impressive sales growth, supported by a distribution partnership with PepsiCo. In 2022, PepsiCo invested $550 million for an 8.5% stake in Celsius, underscoring their commitment to the brand’s expansion. This strategic alliance has been instrumental in driving Celsius’s revenue growth and enhancing its market presence.
While international markets currently account for just under 4% of the company’s $385 million in quarterly sales, these regions represent a significant growth opportunity. The company has already expanded into Canada and plans to enter the UK market through partnerships with PepsiCo and Suntory Beverage, respectively.
Overall, Celsius Holdings, Inc. is well-positioned for continued growth and increased market value, driven by its strategic partnerships, global market expansion, innovative product offerings, and alignment with consumer health trends. Considering the expected global market expansion and revenue growth, the outlook for Celsius’s stock is positive.
*References: Celsius Investor Presentation, Piper Sandler Taking Stock With Teens