Back to top

Image: Bigstock

How Will Celsius Leverage Its Energy Drink Market Share in 2025?

Read MoreHide Full Article

Key Takeaways

  • CELH is capitalizing on lifestyle-driven demand with innovations and global expansion strategies.
  • CELH's Alani Nu acquisition is boosting retail shelf space and global market reach.
  • Seasonal and limited-time products help CELH maintain strong consumer engagement.

As evolving consumer lifestyles drive demand for energy drinks, Celsius Holdings, Inc. ((CELH - Free Report) ) is strategically positioned to resonate well with such trends. With strategic acquisitions, constant product innovations, digital marketing execution and global expansion, the company is set to capitalize on the booming energy drink market share in 2025.

In this context, the company’s Alani Nu acquisition is playing a major role. With the Alani Nu acquisition that is concluded this April, the company is likely to lead the modern energy category on sturdy gains in retail shelf space and international growth. On a combined basis, Celsius and Alani Nu constituted roughly 20% of the overall energy drink category dollar growth during the first quarter of 2025.

Functional, modern energy has become an integral part of consumers’ daily routines and pantry staples. Accordingly, Celsius stands at the forefront of this evolution, powered by its portfolio of brands revolving around fitness, functionality and better-for-you energy. CELH has diversified beyond the traditional canned drinks, with innovations like Celsius Essentials, CELSIUS Hydration powder sticks and seasonal or limited-time offerings that keep consumer engagement fresh.

Celsius is also tapping into lifestyle-driven trends through its "LIVE FIT" campaign, which promotes energy drinks supporting a balanced lifestyle and extending its reach beyond core fitness-focused consumers. The company will bolster future growth via its focus on unlocking the female consumer segment, capturing more wellness occasions and driving market share in the functional beverage space.

CELH’s Competition

Amid the booming energy drinks category, PepsiCo, Inc. ((PEP - Free Report) ) and Monster Beverage Corporation ((MNST - Free Report) ) are competing with Celsius.

PepsiCo is strategically reshaping its product portfolio to align with the evolving consumer preferences, with a sharp focus on functionality, health and affordability. In the beverages category, PEP is intensifying its focus on zero-sugar offerings while extending its reach into functional hydration, powders and tablets. Pepsi Zero Sugar, Gatorade Zero and rapid hydration variants are doing well. PepsiCo’s emphasis on a solid innovation pipeline, designed to resonate well with evolving consumer preferences, positions it well for growth.

Monster Beverage continues to benefit from the expansion of the energy drinks market and product launches, reinforcing its category strength. MNST continues to benefit from constant growth in the global energy drink market, backed by strong demand across convenience stores and other key retail channels. In first-quarter 2025, the Monster Energy Drinks segment's sales grew 2.2% on a currency-adjusted basis. The company is seeing solid consumer retail sales for the energy drink category.

CELH’s Price Performance, Valuation and Estimates

Celsius shares have risen 65% year to date against the industry’s 3.3% dip.

Zacks Investment Research
Image Source: Zacks Investment Research

From a valuation standpoint, CELH trades at a forward price-to-earnings ratio of 43.99X compared with the industry’s average of 16.13X.

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CELH’s 2025 and 2026 earnings per share (EPS) indicates year-over-year growth of 17.1% and 41.5%, respectively. The company’s EPS estimates for 2025 and 2026 have moved northward in the past 30 days.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Celsius carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


PepsiCo, Inc. (PEP) - free report >>

Monster Beverage Corporation (MNST) - free report >>

Celsius Holdings Inc. (CELH) - free report >>

Published in