• Marketing Society

Celsius Is Changing the Energy Drink Market

April 11th, 2022

By: Phoebe Su

Courtesy of Forbes

Red Bull and Monster have dominated the energy drink market for decades. It might just be time for a refreshing new energy drink. I’m sure you’ve already seen this one occupying the shelves of Target and all your local grocery and convenience stores. Not to mention, everyone seems to be holding one all the time whether they’re running, walking, or even just sitting in class. What is all the hype behind Celsius?

Live Fit Campaign

Celsius claims to be health-focused, with most of its campaigns promoting its slogan “Live Fit.” The drink is completely vegan and contains no carbohydrates, containing only natural flavors and colors. It has seven different vitamins, green tea, ginger, guarana, and caffeine. Regardless of your personal health journey, Celsius is there to power your active lifestyle and reach your goals with its scientific formula that is clinically proven to boost metabolism and burn body fat. Backed by six published university studies by accredited U.S. scientific research facilities, research showed that the drink has thermogenic properties, making it one of the most advanced energy drinks on the market. Unlike their competitors in the energy drink market, Celsius is not just targeted toward high functioning athletes, but also anyone who just needs an extra boost in their busy workdays. According to a 2021 Alix Partners Health and Wellness Survey, roughly half of U.S. consumers believe a healthy lifestyle has become more important over the past year, especially after the pandemic. More than ever before, awareness has grown about nutrition and wellness and Celsius is delivering to this post-pandemic audience.

Courtesy of Dcsportsday

A Celsius For Everyone

Celsius currently has five lines of products: Celsius Original, Celsius Heat, Celsius BCAA, Celsius-Stevia, Celsius On-The-Go, and Heat On-The-Go. Celsius Original is said to provide essential energy for active lifestyles, so it is reminiscent of more of a traditional energy drink. Celsius Heat is for performance energy, presumably for those looking to enhance performance with more intense physical lifestyles. Think professional athletes, military officers, first responders. Celsius BCAA is for the recovery process, with supplements such as vitamin D3 and BCAAs that work to reduce inflammation and fuel recovery. Celsius-Stevia is for those with a sweet tooth but still want to be healthy. Finally, the On-The-Go’s are for the people who are all about convenience; these powder pouches are perfect to pour right into your water bottle. With all these different lines, Celsius is sure to attract a broad range of customers.

Courtesy of Instagram

Flavor Profile & Packaging

What sets Celsius apart from its competitors is also that they are dedicated to providing the best flavor profile of all functional drinks. Currently, they have 12 different fruity flavors. From what I’ve heard, the Orange, Wild Berry, Peach Mango Green Tea, and Tropical Vibe seem to be the fan favorites. So not only does it feel good to drink a Celsius, but it also tastes good and is enjoyable to sip on. Although Red Bull and Monster also have different flavors besides their original, the reviews aren’t too great for the taste aspect. Additionally, the bold packaging of the Celsius drink is part of what makes it so appealing to younger consumers aged 18-24. The colors and the logo on the can are vibrant, energetic, and promising which is different from other leading energy drinks on the market who we associate with outdated packaging of darker colors and are not as aesthetically pleasing. As a generation of Instagrammers, Celsius makes for a very picture-ready drink.

Courtesy of Celsius August 2021 Investor Presentation

Where is Celsius Heading?

With a 1.7% share in the energy drink market and growing revenue, I think the sales of the popular Celsius drink will keep on growing in 2022. It seems like this won’t be a micro-trend either, since health consciousness is becoming increasingly valued. Celsius is already expanding its flavor profile by introducing the new Strawberry Lemonade flavor for the summer. I suppose its next steps would be to diversify its products but for now, it's doing great with the drinks. I haven’t seen much advertising or marketing for Celsius besides word-of-mouth or influencers talking about it on Tik Tok so Celsius might want to increase their budget for paid marketing to gain more brand awareness. So far, I like their product marketing strategy of using both the traditional energy drink cans and powder packets. Their secret formula is also not easily copied which will make it hard for competitors. Celsius is changing the energy drink market for the better towards a health-focused route. As for partnerships, Celsius already found its way into UFC and NASCAR with brand deals with famous athletes and race car drivers and will probably continue to expand their partnerships. I wouldn’t be surprised if they started to market with pop culture celebrities or influencers next.




 

Phoebe Su is one of the Co-Content Directors this semester. She is a sophomore student-athlete at NYU CAS studying Economics and on the NYU Varsity Tennis Team.


Works Cited

  1. https://www.fooddive.com/news/celsius-is-luring-consumers-that-dont-want-grandfathers-energy-drink-c/607026/

  2. https://www.celsius.com/

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