Energy drinks are increasingly positioned as functional, performance-enhancing products embedded in daily routines, reflecting a broader shift towards health and productivity in Asia, according to GlobalData’s Tim Hill.
Hill attributes the growth of energy drinks in Asia to rising societal emphasis on productivity and high performance, alongside increasing demand for healthier beverage options.
According to Innova Markets Insights, energy drinks are the most widely purchased functional beverage in South and Southeast Asia, underscoring strong demand for drinks that go beyond basic refreshment.
This shift is also reflected in ADM’s observations. The firm’s Marketing Director for Beverages, APeC, Sarah Lim, sees this as an opportunity for brands to move beyond framing energy drinks purely as performance enhancers.
“Traditionally, energy drinks were defined by a fast caffeine hit and a short-term spike in alertness. Today, particularly among Gen Z, they are increasingly seen as tools for sustained performance rather than instant stimulation,” Lim told FoodNavigator.
Better-for-you energy drinks can be positioned as part of everyday routines and holistic self-care, supporting focus, hydration, and sustained energy across multiple consumption occasions rather than only high-intensity use.
Where brands can win: Balancing energy, hydration and sugar
“One of the biggest white spaces lies in how brands balance energy, hydration and taste as consumer expectations continue to evolve. Energy drinks are no longer judged on stimulation alone. Consumers are increasingly expecting added hydration benefits, alongside sustained energy and great flavour, without excess sugar,” said Lim.
“From a formulation perspective, this opens up opportunities around integrated energy and hydration blends, where functional hydration components work in tandem with caffeine systems to support rounded, all-day energy. At the same time, low- and reduced-sugar formulations are emerging as a key consideration in better-for-you energy drinks.”
India’s Ocean beverages addresses hydration needs with its green tea-based energy drink. The firm chose green tea for its high water content to counteract the diuretic effects of caffeine that can lead to increased urine production, potentially affecting overall fluid balance.
Apart from hydration, sugar remains a key concern. According to ADM’s 2024 Beverage Innovation Report, around 70% of Asia Pacific consumers are concerned about sugar levels in beverages, which indicates that managing sugar content should remain a key priority for manufacturers.
Dutch brand Nightwatch reflects this shift by using ilex guayusa, a botanical associated with a more sustained release of energy, as brands look to move away from the sharp spikes traditionally linked to high-sugar energy drinks. The formulation also incorporates lower-sugar sweeteners such as blue agave and fruit juices.
“Consumers are looking for products that support focus, mental clarity, and hydration across longer periods of work, study, or gaming without the crash or jitteriness often associated with high-caffeine formulations. This shift is driving demand for cleaner labels, alternative energy sources such as guarana and botanical extracts, and functional ingredients that align with overall wellbeing,” said Lim.
“At the same time, taste and experience have become just as important as function. Energy drinks are no longer purely utilitarian; they are expected to be enjoyable, refreshing, and expressive.”
Therefore, bright citrus flavours are gaining traction, alongside nostalgic profiles that emphasise enjoyment and refreshment.
Brands are responding with regionally relevant ingredients and formats.
Australia’s Kanguru features a South American botanical yerba mate known as a natural caffeinated stimulant. It comes in various flavours such as green apple and mixed berry & pomegranate.
South Korea’s Bacchus, on the other hand, focuses on functional ingredients such as B vitamins for energy, ginseng extract for boosting energy, and royal jelly for skin hydration.
Such product launches indicate that brands are incorporating familiar ingredient cues and flavour profiles, such as botanicals, or citrus-forward flavours that resonate across local taste and preferences.
“This is particularly relevant in APAC, where two in five consumers say botanicals would encourage increased beverage consumption, helping position energy drinks as part of everyday routines rather than occasional use,” Lim said.
Localisation – tailoring energy drinks for Asia
In Southeast Asia, localisation and functionality increasingly intersect through usage-led innovation, with products designed around everyday consumption occasions rather than occasional performance use.
As a result, energy drinks are no longer defined only by a high-caffeine boost. Many products now highlight benefits such as sustained energy and focus, supporting regular consumption alongside work, studying, sports, or gaming.
For example, China’s EastRoc offers energy drinks designed to combat fatigue with functional ingredients taurine, lysine, caffeine, niacin, and B vitamins.
Indonesian brand Extra Joss is positioned as a sugar-free, effervescent energy drink powder designed to boost energy, endurance, and metabolism.
M-150, another well-known brand in Indonesia, is designed for athletes with functional ingredients like taurine, B-vitamins, and caffeine.
In terms of format, ready-to-drink (RTD) cans remain the dominant format across the region.
“Canned energy drinks accounted for nearly 80% of APAC energy drink revenue in 2024, underscoring their strong alignment with on-the-go consumption and convenience. Their widespread availability across retail channels supports the active, urban lifestyles that shape energy drink usage across Southeast Asia,” Lim said.
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