Energy drinks in today’s world have become extremely popular. The reasons behind it are their high demand, aggressive marketing, and the ability to replenish energy instantly. As it is well known, high demand and supply mean less price. But that law doesn’t apply in the energy drinks market.
Energy drinks are expensive mainly due to their ingredients and advertising. You will see names of popular energy drink brands everywhere, from big sporting events to movie premieres to high-octane Esports events. Also, unequal distribution is a crucial reason for the costly price of energy drinks in some regions.
Despite energy drinks being expensive, consumers can’t abruptly stop taking them because of the purpose it serves. The reasons why are energy drinks so expensive are subtle yet unmistakable. Following some tips and tricks shall be highly beneficial for you as an energy drink consumer. This article will explore both the reasons and solutions, so let’s go.
6 Reasons Why Energy Drinks are Expensive
As I have stated above, the two main reasons for the high price of energy drinks are mainly their ingredients and marketing strategy. However, there are more reasons. Here are 6 reasons why energy drinks are expensive:
1. Ingredients and Manufacturing Process
Energy drinks are stored side by side in the refrigerator with soft drinks. So, when a customer checks the price of the two, the energy drinks price may seem outrageous compared to soft drinks. They look the same from the outside; same can, packaging, size, etc., so why does the energy drink price feel unjust?
One of the primary reasons is the manufacturing process and the ingredients. Soft drinks are composed of carbonated water, sugar, and flavor. The elements are standard, and so is the manufacturing process.
Whereas energy drinks contain caffeine, Guarana, l-carnitine, sugars, antioxidants, Ginseng, Ginkgo Biloba, Taurine, Glucuronolactone, B vitamins, etc. As you can understand, the manufacturing process is complex and involves intricate machinery and technicians. So naturally, energy drinks bear a higher price tag from the get-go.
2. High Demand
Energy drinks are high in demand. People in the USA consume more than 29 billion gallons of energy drinks every year. While soft drinks are for comfort, to many people energy drinks are more of a necessity. They are irreplaceable for long study sessions, staying energized during high-performance activities, attending concerts or sporting events, etc.
The demand is high, and so is the price. Energy drink brands have set a high price tag because people buy them at this price. And people buy because they may require a boost. The very nature of energy drinks is behind high demand and cost.
3. Marketing Strategy
Energy drink companies spend a vast amount of money on advertising. In today’s world, marketing means everything. Companies spend billions every year on advertisements. This expense eats into the profit, so they compensate by increasing the price.
As a consumer, you should remember that you are paying for the product and for every penny that was spent to get it into your hands. You will often see similar products from lesser-known brands priced lower. They pay less for advertising, hence the low price and less familiarity.
4. Sponsorship Deals
Sponsorship deals are one of the leading choices of big companies to spread their name. Sponsorship is the act of supporting an event by providing a product, service, or money in exchange for advertising the provider’s name. It could be their brand name, logo, slogan, etc.
Energy drinks are heavily involved in sponsorship deals in big events where there are many audiences. The sponsorship can be with an organization, a specific event, or a particular individual. Individuals are all celebrities, mainly sports personnel.
They will not wear a shirt saying the name of the energy drink company unless they are paid a hefty amount. So, by default, they collect the expense from their customers. It is one of the prime reasons for the high price tag of energy drinks.
5. Transportation
Soft drinks are more popular and widely available than energy drinks. Even in developing countries, renowned soft drink brands like Coca-Cola and Pepsi have manufacturing plants. Local production means less prices because of no international shipping costs and taxes. Ingredient import cost and sales tax still apply, but that amount is substantially less.
In many countries, energy drinks are imported from other countries. Importers import in fewer amounts to sell faster. They also opt for air shipping to deliver the products quickly. Shipping costs and import tax account for the excessive price of energy drinks in countries where it is not manufactured locally.
6. Brand Reputation
Brand value is an asset in business. Energy drink companies like Monster, Red Bull, and Rockstar are big names in the market. People not only buy their products because of the quality, but also for the name. Just imagine, you’ve never had an energy drink in your life, which one would you choose as your first?
One of the big names, right? The reputation of these companies has reached a state from where it is least likely to revert. Those who drink and those who don’t drink are buying these drinks like crazy regardless of the price. And the companies are cashing in on this ever-so-existing opportunity.
Companies have spent millions of dollars to achieve this exclusive reputation. So, that factors into their cost as well.
How to Save Money on Energy Drinks?
Energy drinks are more of a necessity than a luxury, so it can be challenging to mitigate the expense. But if you don’t, it can take a toll on your wallet. There are ways you can save money on energy drinks. Let’s take a look at those:
- Buy in Bulk
Buying in bulk instead of single units is always economical. Manufacturers and vendors often offer a discount if you buy significant amounts at a time. However, remember that you are not likely to get any discount even if you buy in bulk from retail shops. Buy from big super shops and hypermarkets. Avoid buying from gas stations.
- Look for Offers
Many online and physical shops offer many discounts all year round. Sometimes these offers are very lucrative, like buy one get one, large discounts, etc. As you need energy drinks regularly, it’s better to use such offers.
- Reduce Consumption
Switching to half cans a day from one can a day saves money on energy drinks. Energy drink cans are usually 16 fluid ounces, equal to 2 to 2½ servings. So consuming half a can a day yields more or less the same benefits as a whole can, only at half the cost. As the month ends, you will see a hefty chunk of money left in your wallet.
- Avoid Temptation By Finding Alternatives
Energy drinks are not only beneficial, but they also taste great. It’s not a good idea to consume energy drinks at random just for the taste. But people can hardly avoid that temptation. If you can do so, you will be able to save money on your energy drinks expenses by not opting to buy single cans when you are out.
Instead, if you find the urge to have some energy drink when you’re away from your home, buy a cup of coffee or maybe just a coke to get some caffeine in your system.
- Create your own energy drink
It’s totally possible to make your own energy drink at home. Using a few simple ingredients found on Amazon you can make something comparable to some of the top brands in the market.
The cool thing about making your own energy drink is you can tweak the taste to your liking. You can even control the level of caffeine. If you want to learn more about DIY energy drinks check out our simple guide on how to make a DIY energy drink from home.
Conclusion
Initially, energy drinks were only meant for a specific group of people, mainly sports professionals and athletes. But in recent times, they have become equally popular among general people for their taste and strong caffeination. Why are energy drinks so expensive still remains vague among consumers, so I believe now it’s clear to you.
