The energy drink market is growing rapidly, and two companies are powering the surge — Celsius Holdings, Inc. CELH and Monster Beverage Corporation MNST. Celsius, known for its health-forward, fitness-focused beverages, has quickly gained market share with its clean-label branding and strong appeal among younger consumers. Monster Beverage, a longtime leader in the category, commands a large global presence through its broad product portfolio and long-standing distribution deal with The Coca-Cola Company KO.
While both companies operate in the same space, their strategies, brand positioning and growth trajectories differ significantly. Celsius is in high-growth mode, rapidly scaling with support from PepsiCo, Inc. PEP, while Monster Beverage leans on its established scale and profitability to maintain leadership. However, both face headwinds from changing consumer preferences, margin pressure, increased competition and looming tariff uncertainties.
For investors navigating this volatile market, these factors could create a timely opportunity to invest in strong energy drink stocks at more attractive valuations. So, which stock — Celsius or Monster Beverage — offers better long-term growth potential right now? Let’s break it down.
The Case for Celsius
Celsius has emerged as one of the fastest-growing brands in the energy drink market by positioning itself as a clean, health-conscious alternative to traditional offerings. Its zero-sugar, clean-label drinks have struck a chord with Gen Z and millennial consumers who prioritize wellness and performance. This strong brand identity has powered growth in fitness centers, specialty stores and major national retailers. The game-changing moment for Celsius came in 2022 with its strategic distribution agreement with PepsiCo, which significantly boosted its retail presence across the United States. In 2024, Celsius reported record revenues of $1.36 billion, a 3% increase and a 22% jump in retail sales compared to 2023, reflecting continued momentum and consumer interest in functional beverage alternatives.
Innovation has been a key pillar in Celsius’ success. In 2024, the company expanded its portfolio by launching CELSIUS ESSENTIALS, a performance energy drink line targeting high-performance consumers seeking larger formats and added functional benefits. It also introduced CELSIUS HYDRATION, thus entering the fast-growing hydration category with zero-sugar, electrolyte-rich powders. These product launches not only brought new consumers into the brand but also expanded Celsius' usage occasions, helping embed the brand further into consumers' daily routines.
That strategy was further amplified in 2025 with the announcement of Celsius’ $1.8 billion acquisition of Alani Nu — a complementary, health-focused beverage company with strong resonance among younger consumers. The acquisition is expected to be immediately accretive to earnings and is projected to deliver $50 million in cost synergies within two years. Together, the combined platform enhances Celsius’ competitiveness and accelerates its ambitions of becoming a leading player in the functional beverage space.
Despite its strong growth, Celsius still faces challenges. One major concern is rising operational costs, including raw material prices, increased freight expenses and inflationary pressure. These factors could squeeze profit margins, making it more difficult for the company to maintain its current growth trajectory. In addition, while Celsius is expanding its retail presence, sustaining this momentum requires continuous spending on marketing, distribution and innovation. Any slowdown in consumer demand or retailer partnerships could limit sales growth.
The Case for Monster Beverage
Monster Beverage remains a dominant force in the global energy drink market, supported by its decades-long leadership and strategic distribution partnership with Coca-Cola. This long-standing alliance has played a key role in driving consistent top- and bottom-line growth, enabling Monster Beverage to maintain a strong financial foundation. With a well-established international presence and a focus on profitable expansion, the company continues to stand out in the highly competitive beverage industry.
Monster Beverage leverages one of the most diverse product portfolios in the category, offering more than 25 active energy drink brands, including flagship lines like Monster Energy, Reign, Java Monster and the recently acquired Bang Energy. This broad lineup allows the company to serve a wide range of consumer preferences across various markets. In the fourth quarter of 2024, Monster Beverage’s core energy drinks segment generated $1.67 billion in net sales, representing a 4.5% year-over-year increase — or 7.6% on a currency-adjusted basis. International momentum was especially strong, with energy drink sales growing 14.4% in Europe, the Middle East and Africa, 11.8% in Asia-Pacific and 20.2% in Latin America, underscoring its success in expanding into underpenetrated global markets.
Innovation continues to be a key driver of Monster Beverage’s growth. After the successful national launch of Monster Energy Ultra Vice Guava in late 2024, the company kept its momentum going with a series of new product launches in early 2025. These include Monster Energy Ultra Blue Hawaiian, Monster Energy Brew Triple Shot, Killer Brew Triple Shot, and Juice Viking Berry—each aimed at capturing evolving consumer tastes and expanding its shelf presence.
However, Monster Beverage’s growth rate has slowed over time. The company is facing modest pressure from inflation and rising input costs, as well as increased competition in the functional beverage space. Despite these headwinds, Monster Beverage has demonstrated pricing power — implementing a 5% price increase in the United States in November 2024. Alongside its entry into alcoholic beverages and coffee-based hybrids, it continues to explore new growth categories. With strong brand equity, global scale and a proven track record of innovation and execution, Monster Beverage is well-positioned for sustained and long-term growth in the evolving energy drink market. However, Monster Beverage’s growth rate has slowed. The company is under modest pressure from inflation and competitive pricing.
How Does the Zacks Consensus Estimate Compare for CELH & MNST?
The Zacks Consensus Estimate for CELH’s 2025 sales and earnings per share (EPS) implies year-over-year growth of 55.3% and 41.4%, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
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The Zacks Consensus Estimate for MNST’s 2025 sales and EPS suggests year-over-year growth of 5.9% and almost 13%, respectively.
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Price Performance & Valuation of CELH & MNST
Celsius stock has surged 41.8% so far this year, driven by strong investor confidence in its expanding product portfolio, performance-focused energy drink lines and the recent acquisition of Alani Nu. In comparison, Monster Beverage’s shares have posted a more moderate gain of 11.5% year to date, reflecting steady investor support for its consistent performance,
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CELH is trading at a forward price-to-earnings (P/E) multiple of 36.06X, below its median of 69.38X in the last three years, suggesting a more reasonable entry point than in recent years. MNST’s forward P/E multiple sits at 31.05X, which is in line with its median level in the last three years, indicating that the stock is fairly valued.
Conclusion
Both CELH and MNST offer strong exposure to the growing energy drink market, with each bringing distinct strengths to the table. Monster Beverage is a proven leader with global scale, a diversified portfolio and consistent financial performance. Thus, it remains the preferred choice for investors seeking stability. However, with modest growth projections, its future growth potential is somewhat limited compared to newer, high-growth players.
However, Celsius edges out as the more compelling growth story — thanks to its rapid revenue acceleration, product innovation and strategic moves like the Alani Nu acquisition. With a younger brand, growing retail footprint and evolving portfolio, CELH appears better positioned to capture the next wave of demand in the health-conscious functional beverage space. Currently trading at a forward P/E much below its three-year median, Celsius offers a reasonable entry point with a high-growth outlook.
CELH and MNST currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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