Why Is Red Bull So Expensive? (Top 5 Reasons)

Red Bull is one of the most common energy drinks in the market. However, it is also one of the most costly options among the top players in the energy drink market. Why is Red Bull so expensive, and what sets it apart from the rest? Below is a comprehensive guide on its expensive price differences.
 

Why is Red Bull so Expensive?

why is red bull so expensive
Red Bull is an effective energy drink. It provides an intense energy boost compared to alternative energy drinks in the market. The energy provided in this drink does not entirely stem from natural ingredients. Regardless, it is highly effective, which is why people are willing to pay a premium for it. Below are researched reasons why Red Bull is so expensive.
 

It Has Unique Ingredients

 
It is made with a specific formula and several ingredients sourced from different places. Such ingredients are not quite as easy to procure, and the drink is not as easy to produce as other energy drinks. In addition, its ingredients are not as easy to get, making them relatively expensive.
 
The ingredients can not be acquired or processed locally, which means that Red Bull has to compensate for the costly nature of sourcing and to process these ingredients. These expensive ingredients contribute to the drink’s effectiveness. It is no wonder the brand prices its drinks highly, and customers consume it willingly.
 

It Provides Value

 
Generally, people feel overwhelmed and tired, depending on their nature of work and activities. As such, people need a boost of energy at one point or another, for example, to lift weights, do heavy tasks, or stay up late for work and studies.
 
However, this energy boost is not easily found in common energy drinks and typical energy-giving foods. For an extra boost of viable energy, Red Bull has always been a reliable supplier. It is made from rare and high-quality ingredients designed to boost your mental and physical strength naturally.
 
Red Bull provides extra energy uncommon in other energy drinks. As such, it tends to be more expensive, and users are willing to pay the price for the drink’s energy-boosting properties and benefits.
 

It Invests A lot in Marketing

 
Chances are you have come across a Red Bull advertisement recently. The brand spends a lot of money marketing their products yearly. One of the greatest marketing strategies it implements is going where its audience is.
 
When the company first came into the market in 1987, energy drinks barely existed, and conventional advertising/marketing was costly. As such, Red Bull went rogue and opted for an entirely different marketing strategy.
 
Its first move involved a guerilla marketing campaign. The company used “Red Bull Girls” to give out free drinks to college kids. The strategy was highly effective, leading to an extreme boost in sales. Subsequently, students would grab a Red Bull to stay focused all night when studying or cramming for their tests.
 
Currently, the energy drink brand still employs the same strategy, which is going where their audience likes to be. Its second strategy involved revolving everything around the concept of creating experiences and content people would gain interest in, whether they care about the drink or not.
 
Moreover, the company utilizes different platforms for marketing, from TV to sports events, to merchandise to sponsorship deals. Essentially, its marketing strategy involves putting its audience first.
 
Since the brand serves hundreds of millions of customers, it is no doubt that their marketing strategies are costly. Therefore, the company also tries to compensate for these expenses on their product prices.
 

Sponsorship Deals

 
Red Bull is highly invested in sponsorship deals in different industries. Sponsorship deals are important aspects of brand marketing. Sponsorship deals involve having a public figure, for example, a musician or athlete, represent the company’s interest in one way or another.
 
For example, the brand has heavily invested in sponsoring a team on Formula One. Currently, it sponsors several athletes, including football sensation Neymar and Tyler Blevins, commonly known as “Ninja” in the gaming industry, among other athletes.
 
It is important to note that sponsorship deals are not free. Red Bull-sponsored individuals are heavily compensated for their active or passive role in helping increase its brand awareness. As such, the brand prices their drinks highly to help bankroll its teams and sponsored individuals.
 

It Has A Solid and Widespread Reputation

 
Over a decade ago, energy drinks were almost uncommon. However, in the last decade and a half, energy drinks have become highly popular. One of the pioneers of energy drinks was Red Bull, which entered the market with a bang.
 
The company has constantly been delivering satisfaction and value ever since its introduction in the market. Their products took off fast and eventually made Red Bull a household name. This level of exposure and reputation gives the company the opportunity to charge more for their drink.
 
Regardless of how expensive a certain product brand is, customers who recognize and trust a certain brand will constantly lean on purchasing the product more than cheaper brand products with lesser-known reputations. The company takes advantage of this widespread reputation to charge their products highly, especially since they provide value for the same high prices.
 

What Is So Special About Red Bull?

 
The company has since been a blend of excitement and energy and is gaining a solid reputation among its users and fans. There are several reasons why the has and is special. One of the main reasons why the company is special is its massive influence on sports. It is one of the most visible sponsors in extreme sports.
 
Its association with extreme sports gives it a cool and fun image in the eyes of the younger population. Its influence in extreme sports includes Formula One, cliff diving, windsurfing, rock climbing, and the Air Racing Series, which has gained a lot of popularity.
 
It is not just the quality of the drink that makes it unique and outstanding in the energy drink market. The brand’s highly effective marketing strategy plays a huge role in making it special.
 
When not sponsoring athletes and events, Red Bull is also involved in supporting scientific advancements such as spinal cord research. Heinz Kinigadner, a two-time motocross world champion, and Dietrich Mateschitz, the founder of Red Bull, are the driving forces behind Wings for Life, which is a research foundation focused on making spinal cord injury curable. This cause is highly consistent with the company’s spirit of being energetic and active.
 
In a nutshell, the brand’s acts of selflessness and putting their clients/audience first, besides producing the best energy drink, are what make the brand special.
 

Is Red Bull Worth the Price?

 
Many people generally do not see the value in the blue can that is worth the high prices. Red Bull provides an added shot of energy that helps individuals perform intense activities with much ease. As such, when factoring in practicality, Red Bull is highly worth the high prices.
 
However, the company has marketed its product in a way that hypes its capabilities. Marketing helps clients see products in different lights, and Red Bull has maximized this opportunity to sell its product as the best energy drink in the market. To some, Red Bull is just like other energy drinks in the market with a solid marketing strategy. To others, it is a revolutionary energy drink with visible product benefits worth every penny.
 

Why is Red Bull More Expensive than Monster?

 
One of the biggest dilemmas is why Red Bull is pricier than Monster, yet its can size is notably smaller than Monster. Surprisingly, Monster rivals Red Bull in different aspects, including ingredient composition. For example, Monster contains 52g of sugar, while Red Bull contains 27g of sugar. However, Red Bull contains 250% B6 vitamins recommended daily intake, whereas Monster contains 230%, 20% less than the recommended.
 
Regardless, Red Bull remains costlier than Monster. If it is not for Red Bull having a higher recommended daily intake of B6 vitamins than Monster, it could be the brand reputation or its marketing strategy that makes its products costlier.
 
The brand has a solid marketing strategy that involves creating events and sponsorship deals that make it more popular than Monster. Such popularity makes it a reliable and trusted brand, giving it the authority to set its prices higher than Monster.
 

How Much Does it Cost to Produce A Can of Red Bull?

 
There has been some concern about how the company makes money and can comfortably sponsor plenty of athletes and sports. Much of this concern drifts to how much money the company spends on producing a single can. Unfortunately, Red Bull is a private company, so it can be hard to access their number for specific researches.
 
Generally, the average manufacturing cost of a single can stands at approximately $0.09. however, the average wholesale price of one can in Western countries stands at $1.87, while the suggested retail price is $3.59 per can. It costs barely 10 cents to produce one can of the energy drink and costs a lot more in sales per can.
 

What Effects (Positive/Adverse) Does Red Bull Have?

 

Positive Effects:

 
Red Bull is intended to boost your alertness, energy, and concentration. Some of the positive effects of drinking it include:
 
It improves brain function. The drink increases mental alertness by improving brain function. Most researchers believe that the improvement of brain function can be attributed solely to caffeine, while others believe it is a combination of sugar and caffeine in the blue can.
 
It Provides Added Energy. Drinking energy drinks when tired or sleep-deprived can help you regain your activity levels. For drivers on long-distance drives, drinking the energy drink increases driving quality and reduces sleepiness.
 

Adverse Effects:

 
On the other hand, Red Bull has adverse effects including:
 
It can elevate blood pressure and heart rate. However, drinking moderate amounts of the drink daily is unlikely to cause severe heart issues. Unfortunately, consuming more than the recommended intake of the drink increases the risk of cardiac problems.
 
It may increase Type 2 Diabetes risk. Taking excess sugar, especially from sweetened beverages increases the risk of Type 2 Diabetes.
 
It may affect kidney health
 
It may increase high-risk behavior
 
It may also lead to caffeine overdose and possible toxicity.
 

How to Save Money on Red Bull?

The drink is relatively so expensive. Fortunately, there are a few things you might be willing to try to save money on purchases. It is important to understand that such purchases are often on impulse. Therefore, avoid impulse purchasing at all costs.
 
Secondly, if you have to buy Red Bull, buy it in bulk or on wholesale. Purchasing your energy drinks on wholesale means that you will pay significantly less than what you would pay per can of the drink.
 
Frequently Asked Questions
 

Why are energy drinks so expensive?

 
The cost of energy drinks has not always been high. However, as their popularity and market increased, the prices also increased. The factors that contribute heavily to the rise in energy drink costs include:
 
● Production cost, including market research and testing
● Marketing and advertising
● Distribution.
 

Are energy drinks good for you?

 
Yes and no. Energy drinks are good for you if you need the motivation and energy to complete tasks. The caffeine in energy drinks helps sharpen your mental clarity and focus. However, energy drinks are not entirely as good for you, more so depending on individuals. The two major ingredients of energy drinks are caffeine and sugar, which can be addictive if consumed regularly.
 

Which is better, Red Bull or Monster?

 
They tend to be similar. However, Monster may contain extra energy-boosting ingredients and comes in a larger can than Red Bull. There are different parameters to determine which of the two rivals the other. When considering the price, Monster is better and cheaper than Red Bull. However, it may also rival Monster in different aspects from product branding and product reputation.
 
Final Thoughts
 
Red Bull is one of the most popular energy drinks in the market with higher prices. It is one of the top energy drink brands with a wide customer base globally. Much of its high pricing is attributed to its superb marketing strategy and reputation. While several people believe that Red Bull is overly priced for nothing, the brand still continues to gain numbers in sales, majorly due to its influence and participation in sporting activities and events.
 
As a product, it has and will always remain a practical blue can of an energy-giving drink. Regardless, you should moderate consumption to avoid the adverse effects of Red Bull consumption.