Why are energy drinks so expensive?
In 2014, J-cast News wrote, "The suggested retail price of 'Regain' is 185 yen (excluding tax) for a 190ml can. Other energy drinks are priced similarly, making them more expensive than regular carbonated beverages. This high price has contributed to the brand's strength, gaining popularity especially among young people." Is it really the high price that builds brand strength??? I thought about this and decided to trace the history of energy drink prices all the way back to the 1980s.
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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.
Why Are Energy Drinks Expensive?
There is no particular reason why energy drinks are expensive. The raw materials are not particularly costly, nor is the manufacturing process specialized and costly. The contents are not much different from regular carbonated beverages.
Yet, they are sold for around 200 yen per can simply because people are willing to buy them at that price.
So, why are energy drinks priced so high? Let's take a look back at history.
The Achievement of Red Bull
The reason they can sell for such high prices is because Red Bull was the first company in the world to create an "energy drink" and successfully crafted the image that "drinking an energy drink will give you something special." This was a major turning point.
Other manufacturers that followed suit also set their prices high, which helped maintain this pricing structure, and the common perception that "energy drinks are expensive" was established.
Around the year 2000, energy drinks with double the volume of Red Bull, 473–500ml, started to be released in Europe and the U.S. (such as Monster Energy, Rockstar Energy, Relentless Energy, Mother Energy, etc.), leading to more affordable energy drinks gradually becoming available.
However, even for the 473–500ml size, the price is still around 2 dollars per can, which is about double the price of regular carbonated drinks. It's clear that the manufacturers are making a lot of profit. Red Bull is also famous for pouring its massive sales into worldwide promotions (though note that they don’t set their prices high just because of promotion costs).
It’s because Red Bull created the energy drink market that the high price of energy drinks became the norm. On the other hand, it can also be said that it led to the absurd situation where other companies started setting high prices just by labeling their product as an "energy drink."
The reason energy drinks are expensive is because Red Bull's pricing strategy succeeded, and other companies followed suit.
Energy Drinks That Are Expensive But Lacking Appeal Don't Last Long
If an energy drink has the same contents and flavor as a regular carbonated drink but is sold at double the price, it’s easy to see why many would be tempted to buy it.
However, energy drinks from companies that jumped in without understanding the market, offering nothing but high prices, usually end up being short-lived. It’s one thing to label a can as an "energy drink" and sell it for 200 yen, but whether people will accept that and buy it is another matter.
The "Regain Energy Drink" mentioned at the beginning disappeared without gaining brand power as an energy drink. This was during Japan’s first energy drink boom. At that time, no manufacturer seemed to truly understand energy drinks.
Just because it's labeled as an energy drink doesn’t mean people will buy it at a high price.
There Are Also Super Affordable, High-Performance Energy Drinks Around the World
The perception that "energy drinks are expensive" is a global truth.
However, there are many energy drink brands worldwide, including in Japan, that are sold at affordable prices without the high markup. For more details, please visit the page "Is 100 yen per can too expensive? A roundup of the most cost-effective energy drinks (Japan & the world)."
Since 2001, Energy Drink Maniac has been drinking energy drinks and providing the most detailed reviews of global energy drinks based on firsthand research.
1533 flavors reviewed.
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The collection includes approximately 7,000 types of energy drinks from different countries, sizes, and designs.