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Cost of Energy Drinks: How Much Are You Spending?

Written by Orlaith Costello

The cost of energy drinks can be a sore spot for fans of energy drinks. As consumers, we always want to get the best value and deal - no matter what the product. But the market keeps changing and growing. And the cost of energy drinks seems to keep increasing, along with consumption. How much are we spending? Who knows!

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Energy drinks have transitioned from being a niche product to one of the fastest growing products in the global drinks market. Energy drinks are in a booming industry that continues to grow. Today there are hundreds of energy drinks on the market, ranging from 5-Hour Energy Shots to massive 500ml cans of Red Bull and Monster. And of course Australia’s first powdered energy drink, REIZE.

Why is the Cost of Energy Drinks So High?

The cost of energy drinks hasn’t always been high, but as their popularity and market increased, so did the prices. The three main reasons for the continued rise in the cost of energy drinks are the following:

  1. Cost of Production - including testing and market research
  2. Advertising and marketing
  3. Distribution

Unlike soft drinks, energy drinks are mostly advertised on their performance enhancing qualities. Most famously, with Red Bull’s ‘it gives you wings’ slogan or with V energy’s latest ‘The big hit that improves you a bit’. Kudos for the rhyme, but not exactly a great brag, right? Not many energy drinks rely on the flavour or taste of the product to sell it. One example of an energy drink that does market its flavouring is, of course, REIZE with our slogan 'Most Flavoursome'. However, the overarching trend in the energy drink sector is to focus on energy boosting qualities. This separates energy drink from soft drink marketing significantly.

For example, Coca-Cola and Pepsi do contain caffeine and sugars, but they would not be classed as energy drinks. Likewise, energy drinks even though they may look and taste and be in the safe fridge as soft drinks will never be classed as soft drinks. The is because people will say that they ‘want’ a Coke or a Pepsi, but they ‘need’ an energy drink. They need that boost. Why? Because our culture demands it.

We Live in A Fast Paced World

The world has never been as busy and chaotic as it is today. With everyone scrambling for the latest news, the quirkiest new trend and the most likes, loves, or smiley faces on our photos or posts. Our culture can be exhausting. Keeping up with ourselves is a draining task, so frankly we have created energy drinks as a way to keep us going. That high demand for energy is met with high supply of energy drinks and other stimulating products. Energy drinks are an easy and effective way to get a rush of energy. With relatively low risk and high reward, that sounds like a good investment to me.

Energy drinks have become staples at colleges, where students crave alertness - both for study and staying out all night. What is often the main cause of their popularity is caffeine. When a person is consuming alcohol, this often leads to tiredness, lethargy and passing out. A serving of an energy drink will often mask the effect of alcohol and make the person feel more alert and sober than they actually are. As Murray Carpenter notes in his book Caffeinated, there’s plenty of precedent for the nightclub staple of Red Bull and vodka, or of supermarket versions like Four Loko, which originally contained roughly six beers and hefty amounts of caffeine

With such a high demand for energy drinks, you would think that the cost of energy drinks would decrease. While there are numerous deals online for cheap energy drinks, and bulk offers, the overall trajectory keeps increasing. As products and processes improve and demand increases.

Can't We Simply Drink Coffee?

Of course, we can get caffeine from coffee, but energy drinks contain from 2.5 to 35.7mg of caffeine per 30ml serving of energy drink; energy shots may have as much as 170mg of caffeine per 30ml. Energy drinks generally contain about the same amount of caffeine, and often even less, than brewed coffee. Estimates for the amount of caffeine in coffee can go as high as 30mg per 30ml serving. In the US, energy drinks and shots are usually sold as dietary supplements or food products, which don’t have a caffeine limit. And other ingredients in energy drinks included for additional benefits — such as taurine and ginseng — aren’t regulated by the FDA.

For children and adolescents, more than 200 mg of caffeine can be dangerous, and the American Academy of Pediatrics advises against giving children energy drinks. At REIZE we recommend two doses of our energy drink a day and we have warning labels against serving to minors. Our beverage is also much more versatile and you have the option of making it weaker or stronger - depending on your preference and caffeine tolerance.

Facts About Purchasing Energy Drinks

The thing about facts? They can be super boring and difficult to get through. So we have cut through the text and made an infographic with all the Cost of Energy Drink facts. Like how Australian's will consume approximately 700 million energy drinks this year alone. And on average an Australian would consume around 28 energy drinks each. 14% of energy drink consumers have three or more per day, and 4% drink five or more per day. And of those energy drink consumers, a whopping 70% of people believe energy drinks are too expensive. In fact, energy drinks around the world are expected to grow at an annual growth rate of 10% per annum for the foreseeable future and some are even tipping them to surpass coffee as the preferred caffeinated beverage of choice.

Can They Keep Up The Cost?

Global energy drink sales have grown by more than 50% since 2005 and represent the fastest-growing segment of the beverage industry. It all adds up. Some companies have to wonder if the price of their product makes them less attractive. But, the demand is still so high, that energy drinks the world over can afford to charge more to meet that demand. And that is just business.

As the energy drink market grows, new brands and products are settling in and finding a niche. The energy drink market started off as a counter-culture. Now, it is one of the more profitable markets in the global beverage industry. This no longer niche market will diversify more and more as consumers gravitate towards their favourite kinds of energy drinks. For instance, you have the classic cold and fizzy sugary versions - like Red Bull and V - the intense caffeine hits - like energy shots - and of course powdered energy drinks like REIZE. With numerous other varieties on the market.

 

Cheap Energy Drink Deals

Just because the costs of energy drinks are high, that doesn't mean you have to pay them. We are not suggesting you dip your toe into the black market of energy drinks - if such a place exists - do your research and find good deals online. From coupon codes to flash sales, there are tons of great deals out there, just waiting to be found. We’ve done our own investigation into the best cheap energy drink deals you can get in the Australian market. You can see our findings here. More of a bulk-buying novice? Check out our tips on the best bulk buying strategies and more.

REIZE: An Affordable and Approachable Product

We would be amiss if we didn't mention one of the most versatile and affordable energy drinks on the market: REIZE. It's Australia's first powdered energy drink. It is sugar-free, contains caffeine, Taurine, Ginseng and a mix of B-vitamins. Unlike the traditional cold and carbonated drinks that come in a can, you can mix REIZE  with cold still water, with hot water to make a delicious hot drink, with soda, juice, and much more. It really is incredibly versatile!

We sell REIZE directly from our websites and deliver right to your door. And, if you live in Australia, postage is free - can anything be better than free delivery? How about incredible savings? We offer various amounts in our online subscription service. From 12 drinks all the way up to 600 drinks, choose delivered monthly or delivered one-time only.

Plus, with our membership, you are in control. And even though you can cancel your membership anytime, we reckon you will absolutely love our drink and join the growing number of people making it their affordable go-to energy boost month in, month out. Even if you decide that REIZE isn't for you, we hope we gave you a little more insight into the hows and whys of the cost of energy drinks.