Energy Drinks Become Latest Casualty As Fuel Shock Shifts Consumer Behavior

The national average price for 87-octane gasoline at the pump has remained above the politically sensitive $4-per-gallon threshold for 57 days and counting, as the U.S.-Iran conflict continues to disrupt energy flows through the Strait of Hormuz chokepoint.

That price shock at the pump has already translated into visible shifts in consumer behavior at gas stations and convenience stores, an emerging trend we first outlined in mid-April (see here and here).

Adding to the consumer story of elevated gas prices pressuring discretionary spending behaviors is new data from NielsenIQ via Goldman.

This chart shows that U.S. energy drink category growth across NielsenIQ-tracked channels, including xAOC, convenience, and Amazon, tracked on a 4-week year-over-year basis, slowed sharply into May 2026.

The latest reading appears to be in the mid-single-digit range, down from the stronger double-digit growth rates seen throughout much of 2025 and early 2026.

It's important to note that energy drinks remain among the healthier beverage categories, but the sharp growth slowdown occurred around the time gasoline prices at the pump surged.

Bonnie Herzog, managing director and senior consumer analyst at Goldman Sachs, did not specify why the category abruptly lost momentum early this year through spring.

However, our prior notes on consumer stress at the pump in mid-April - including Goldman data showing that a majority of convenience stores reported drivers buying less fuel and trading down in-store - only suggest that higher gasoline prices may be a major contributing factor behind the slowdown in energy drinks.

If consumers are already dialing back fuel purchases and discretionary purchases at convenience stores, it makes sense that premium impulse categories like energy drinks are also under pressure.

Professional subscribers can read the full NielsenIQ via Goldman here at our new Marketdesk.ai portal