Monster Energy looking to overtake Red Bull?

A lot of people in the motorsport world have been talking about this new partnership, the fan activations that will come along with it, and – hopefully – a sick livery 👀.

But why did Monster energy NEED the change?

Red Bull holds 39.5% of the U.S. energy drink market in 2023, according to Statista. Monster Energy ranks second at 29.7%. The rest of the industry shares are made up by Celsius, Bang, Rockstar, etc. all under 6% of the market.

It’s truly a competition between Monster Energy and Red Bull for the energy drink market. The overall energy drink market is projected to grow 5.59% annually from 2023-2027. The United States is the largest market globally in 2023 and has a projected revenue of $107,700m. Other key regions include the Europe and Singapore markets.

One of these energy drinks is the owner of 2 F1 teams, and the other is not. So, to close the gap on Red Bull, why shift to McLaren Racing?

In the 2022 F1 fan insights report by Motorsport Network and Nielson, McLaren was the most popular F1 team (30% of respondents).

🔶 McLaren’s team popularity doubled from 2017-2021. 

🔷 The second most popular team? Red Bull 

⚫ Mercedes was 4th

🔶McLaren driver Lando Norris was the second most popular driver overall and was the favorite driver for the 16-24 age demographic (energy drink target demographic is 18-34)

🔷The most popular driver? Red Bull’s Max Verstappen (popular in all age demographics)

⚫ Hamilton ranked 3rd, Russell 9th

🔶McLaren has the most US sponsorship of all F1 teams

🔷The second most? Red Bull. 

⚫ Mercedes is 4th

Mercedes-AMG PETRONAS Formula One Team have built an amazing team and brand. With higher word associations being "luxurious" and "class", and drivers and marketing that reflects this brand, they are no longer a natural fit for Monster Energy, and vice versa.

Red Bull is one of the most recognizable brands in sports partnerships. Focusing on authenticity and excitement; Red Bull has been sponsoring adventurous/extreme sports for years, creating a strong brand association of energy, adventure, etc. Common associations you want with an energy drink.

Monster energy no doubt wants to ensure they maintain their similar branding and associations, and to take a greater share of the energy drink market. Thus enters McLaren, a team with young drivers representative of the primary energy drink consumer, rising global popularity, and brand associations such as "youth" and "energy".

Monster is in it for the long haul with this multi-year partnership. So, is this shift to McLaren part of the winning strategy for Monster to overtake Red Bull in the fight for energy drink market dominance?