Sales growth of energy drinks slows, Monster Beverage (MNST.US) and Celsius (MNST.US) shares under pressure

The energy drink industry has recently faced challenges in slowing sales growth, a trend that has caught investors' attention. Nielsen's data shows that while consumers are becoming more cautious in buying discretionary items, they are not completely shifting to other categories. Peter Grom, an analyst at UBS, believes that the main reason for the decline in energy drink consumption is that consumers are consuming them less frequently, and the decline in foot traffic at convenience stores also affects sales. Despite this, some brands such as Bang Energy and Celsius Holdings have seen their market share rise, while Red Bull has maintained its market leadership through the launch of new products. However, overall, brands need to cope with the double pressure of intensified competition and slowing growth. Growth is expected to remain sluggish for the rest of the year, but it may normalize in 2025.

Specifically, Nielsen's retail data shows that Monster Beverage's Bang Energy sales have rebounded despite a decline in its other brands' market share. Celsius Holdings' market share has slightly declined and stabilized at around 10% after reaching a peak of 10.9% in May. Red Bull has solidified its market position through the launch of new products such as Curuba Elderflower Summer Edition and sugar-free Red Bull Amber and Red. Emerging brand Alani Nu reached a peak of 4.6% market share in early September, showing strong growth momentum. However, other emerging brands collectively lost market share. PepsiCo (PEP.US) and Coca-Cola (KO.US) also saw a slowdown in energy drink sales.

On the stock market performance, Monster Beverage has fallen 9.4% so far this year, while Celsius Holdings has fallen 43%. These data reflect investors' concerns about the future of the energy drink industry, despite some brands' success through innovation and market strategies, the overall market growth prospects remain challenging.