Energy Drinks Are Becoming Gen Z's Coffee

Better-for-you energy brands — Celsius, Alani Nu, C4, Ghost — collectively grew 24% in dollars last year while traditional energy was up 6% and ground coffee declined 1%. The fastest-growing consumption occasion is 6–10am, historically owned by coffee.

Coffee built its franchise on a daily morning ritual. Functional energy is now winning that ritual among shoppers under 35 with sugar-free positioning, fruit-forward flavors, and on-the-go convenience.

Expect Keurig Dr Pepper, Pepsi, and Coca-Cola to deepen energy bets — and Starbucks to push harder into RTD energy formats. Coffee brands need a credible cold, sweet, sugar-free morning option, fast.

Gen Z drinks energy without the "performance" framing — flavor, mood, and aesthetics drive the choice. The functional claim is permission, not motivation.

Coffee brands should treat better-for-you energy as a direct competitor for the morning occasion, not a separate category. Innovation in cold, sweet, low-sugar formats is non-negotiable.