Energy drink cost

Posted on May 15, 2014 | Last updated February 17, 2025

Cost of Energy Drinks is Below 10 Yen

Cost of Energy Drinks
Although it's unclear who sourced this information, it's generally known that the cost of soft drinks is just a few yen.
Similarly, even though various energy ingredients are added, the amount is so small that it doesn't have much of an impact on the cost. It is said that the cost of an energy drink is below 10 yen.

Author information Author: Energy Drink-kun

In 2001, while living in the United States, I encountered energy drinks through the dance scene and was deeply impressed. After returning to Japan, I found that energy drinks were considered novelty beverages, so I established a comprehensive website in 2013 to share the true appeal of energy drinks. As an energy drink enthusiast, I began drinking them seriously again, collecting over 7,000 varieties of energy drinks from various countries. I am also active as a critic and expert, receiving media interviews.

Just Need to Sell a Little and It's Okay

Soft drinks come and go every year, right? The same goes for energy drinks, and during the energy drink boom in 2014, most energy drinks expired and were disposed of within a year.

However, because the cost is low, selling one can generates almost twice the profit compared to regular carbonated drinks, so even if they don't sell out the entire production batch, as long as they sell decently, it should result in a reasonable profit. Energy drinks are now expected to be priced at 200 yen, whether there's a reason or not.

If the Cost Is the Same, You Have to Sell Energy Drinks for 200 Yen

Energy drinks are low-cost beverages. Just because they're energy drinks doesn't mean the ingredients are particularly expensive, and they're almost the same as regular juices.

If the cost is the same as other carbonated drinks, manufacturers would definitely make energy drinks that can be sold for twice the retail price.

During an energy drink boom, simply releasing a product is enough to create buzz, and with the same promotional budget as usual, more people will pick it up—such a great situation. A beverage manufacturer that doesn't jump on the energy drink trend has no future; it's the type of company that doesn't pursue profitable opportunities Σ(´∀｀；)

When a trend catches on, many products will jump in, accelerating the trend even more. It's no surprise that companies want to cash in on the energy drink popularity, considering the cost, price, and profit margin. However, since most products can't sell out at the retail price, even the copycat products don’t make a huge profit, which is unfortunate. If they were making money, they'd increase production and continue selling.

Established Energy Drink Brands Are Strong

The cost is the same as regular carbonated drinks, but even though the retail price is 200 yen, that’s considered normal. However, whether people are willing to spend that 200 yen is a different story. Most would prefer to buy the well-known Red Bull or a larger, more potent Monster Energy.

Basically, most energy drinks can't establish a brand and fade away, leaving Red Bull and Monster Energy as the two dominant players in Japan. This suggests that these two companies are making quite a lot of money.

If you're going to release an energy drink, aim for the third position. Even if you don't catch up to the top two, just being third will create a situation where the product will sell. Selling energy drinks with very low production costs and high sales is incredibly profitable.

However, reaching that level of branding is honestly difficult, and expanding distribution channels is not easy either. It will be interesting to see if a successful brand emerges in this delicious niche in Japan in the future.