Start Energy Drink Business [Sourcing Guide And Selling Strategies]

This blog will discuss how to start an energy drink business, including selling and sourcing strategies that can increase the profitability of your business.

Energy Drink Business Market Size

According to Straits Research, the global energy drink market was valued at 107 billion USD in 2024. By the end of 2025, it is expected to become a 116 billion USD industry. From 2025 to 2033, the market is expected to reach a value of $ 223 billion with a CAGR of 8.5%.

Step-by-Step Guide To Start an Energy Drink Business

Below, we have outlined the crucial steps to consider when starting your own energy drink business.

1_Understanding the Energy Drink Market

The global energy drink market is experiencing steady growth each year, making it a reliable sector for new businesses.

The demand for energy drinks is increasing daily as health-conscious customers seek reliable alternatives to harmful and sugary beverages. Energy drinks are high in demand among various buyers and can be sold in bulk to fitness centers, gyms, supermarkets, convenience stores, gas stations, resellers, and e-commerce outlets.

When it comes to understanding profit margins, wholesalers and distributors typically make an average of 20-40% profit, depending on the volume and branding. Private label energy drink brands can earn more profit depending on their unique selling points, such as offering premium or health-focused products.

2_Types of Energy Drinks You Can Sell

The energy drink market size is growing, regardless of the category your energy drink falls under. Such products have a high repeat customer rate and can be sold with high profit margins. Have a look at the types of energy drinks that you can sell.

1_Standard and sugar-free energy drinks occupy a significant portion of the beverage market. Standard energy drinks remain popular among people of all ages, but sugar-free energy drinks have also captured the attention of health-conscious customers, resulting in a growing market.

2_Organic and natural are trending among the young audience. Drinks made of green tea or guarana are also gaining customers' attention.

3_Functional health drinks are known among athletes as they are rich in vitamins, amino acids, and electrolytes, which help provide the body with essential nutrients as needed by professionals and athletes.

4_Private labels and brands are also very popular in the market. Businesses are investing in launching their own brand and offering custom formulation and branding. Selling such energy drinks can be a profitable venture if you follow the right strategies to run the business.

3_Sourcing Guide: Where to Find Energy Drink Suppliers

If you want to kickstart your energy drink business, the first and foremost thing you need to consider is how you will source the products in bulk. As a new startup, it is always better to source energy drinks from manufacturers or obtain products that are private-labeled from third-party manufacturers. It is easy, cost-effective, and does not require setting up your own production house.

For that, online B2B marketplaces are the perfect option to consider. Platforms like Tradewheel.com, Alibaba, and Global Sources are known for connecting buyers with global manufacturers from various industries, including the beverage industry. You can connect and communicate with them, inquire about their products, obtain price quotations, and request sample products. If you are satisfied with their requirements and products, you can place your final order hassle-free and save on the per-unit cost of each product.​

Through networking, you can connect with brands and beverage manufacturers and get customized energy drinks for your business. Social media platforms and forums have various communities from various industries. You can find genuine suppliers through this method and can source products at low prices and of good quality.

It is important for new startups to check if the suppliers of energy drinks are offering low MOQ options, certifications like FDA, ISO, GMP, etc., brand logos, packaging customization options, etc. these factors are important to look for when purchasing energy drinks in bulk for reselling purposes as offer good quality products to the customers will increase the brand value of your business with increased sales.

4_How to Build Your Energy Drink Brand (Private Labeling Tips)

To build a private label energy drink brand, focus primarily on the product itself. As it is the core of your business. Choose what type of product you are going to add to your brand: is it going to be a standard product, or would it be sugar-free alternatives of other energy drinks, or would it be packed with vitamins and minerals?

Having bold and clear packaging and product design helps brands to grab the attention of customers. Focus on whether you are going to sell canned energy drinks or bottled energy drinks. Invest in modern designs that appeal to potential buyers and encourage them to try your products. Additionally, highlight the unique selling point or key ingredients used in the energy drink on the packaging to capture the target market's interest.

Get your business registered with the relevant authorities, both locally and internationally. Securing FDA approval (in the US), ISO, GMP, or Halal certifications boosts trust and helps with international exports.

5_Selling Strategies to Grow Your Energy Drink Business

There are three ways to sell your energy drinks.

1_One effective method is online B2B marketplaces if you are selling products in bulk and at wholesale prices. Platforms like Tradeweel.com offer an extensive buyers' directory that you can check out and connect with genuine buyers to do business with. You can wholesale energy drinks to supermarkets, gyms, convenience stores, and distributors.

2_Another method is to attend trade shows and exhibitions, which enable you to connect with a broader audience from different countries. You can offer them sample products, learn about their taste preferences, and the reasons why they purchase energy drinks. If you find any flaws in your business, you can correct them and seal the final profitable business deals with global buyers without any hassle.

3_Utilize SEO for online visibility, influencer partnerships for brand awareness, social media buzz for attracting younger buyers, and event sponsorships (such as sports or music events) to establish credibility. Social media marketing is a crucial tool that can drive sales to your business if executed effectively. Social media platforms are among the highest user engagement platforms, where you can connect with genuine bulk buyers as well, using PPC, SEO, or other marketing strategies.

6_Pricing & Profitability Model

One of the most crucial aspects of launching an energy drink business is understanding the cost structure and determining the realistic profit margin.

Let’s take a simple example to break it down. Suppose the production cost of one can is around $0.50, which covers ingredients and manufacturing. To make the product attractive to buyers, you also need to invest in packaging and branding, which might add another $0.20 per can. Then come the shipping and logistics costs, such as transporting the cans to warehouses or buyers, which may add about $0.15 per can.

Finally, you must also consider marketing and distribution expenses, such as advertising, partnerships, and reseller commissions, which can add another $0.15 per can. Altogether, this means the total cost per can comes to around $1.00.

Now, if you are selling wholesale to gyms, supermarkets, or distributors, you could set a price of about $1.50 per can. This yields a profit margin of $0.50 per can, equivalent to a 50% return. The advantage of this approach is that you sell in bulk, allowing profits to accumulate quickly, even though the margin per unit is moderate.

On the other hand, if you build your own private label brand and sell directly to consumers through platforms like Amazon or in retail stores, you could price your cans at $2.50 each. In this case, you earn $1.50 profit per can, which is a 150% margin. The difference here is that direct retail sales offer much higher profits, but they also require greater investment in marketing, branding, and customer acquisition to sustain sales.

7_Legal & Compliance Matters

To sell energy drinks, you must comply with all the necessary legal requirements for the business. Register your business with the relevant food authorities in your region or the specific region where you intend to conduct or expand your business.

If you want to export your energy drinks to other countries, you must follow the export rules. Ensure that the packaging of the products meets the export requirements of different countries, including the ingredients and their quantities, and include an allergen warning.

8_Future Trends in the Energy Drink Market

The energy drink market trends are evolving in response to industry requirements. Future trends show that consumer demand is moving toward healthier and more sustainable options. Many people are now seeking sugar-free, organic, and natural energy drinks, as they desire an energy boost without the unhealthy side effects associated with excessive sugar or artificial ingredients.​

At the same time, there is a growing interest in nootropic and functional beverages that not only provide energy but also enhance focus, brain performance, and overall well-being.​

Drinks enriched with vitamins, electrolytes, or herbal extracts are gaining popularity among health-conscious and professional consumers.​

Another important trend is eco-friendly packaging. With growing awareness of environmental issues, companies are now expected to use recyclable cans or bottles made from sustainable materials.

These changes show that the future of the energy drink industry lies in innovation, health-focused products, and environmentally responsible practices.

Challenges in the Energy Drink Business: With Possible Solutions

Here is a list of challenges that you might face in the energy drink industry, along with possible solutions to overcome them effectively.

Conclusion

If you want to start your own energy drink brand, keep reading this blog, as we have discussed all the important factors and strategies you need to consider to kickstart a successful business.

FAQ’s

1_How much does it cost to start an energy drink business?

Starting costs can range from $50,000 to $ 100,000 or more, depending on whether you opt for wholesale or private labeling.

2_Is private labeling of energy drinks profitable?

Yes, private labeling can be highly profitable, often giving higher margins (100–150%) compared to wholesale.

3_How can small businesses compete with big brands like Red Bull?

Small businesses can compete by focusing on niche markets, offering healthier formulations, utilizing unique branding, and maintaining local distribution.

4_What certifications are needed to sell energy drinks internationally?

Key certifications include FDA, ISO, GMP, Halal, and region-specific food safety approvals for global trade.