Monster Beverage Faces Market Share Challenges but RBC Sees Recovery Potential by 2026

Monster Beverage Corporation (NASDAQ: MNST) is currently navigating through a turbulent period, as it faces notable share challenges. RBC has maintained a cautiously optimistic outlook for the company, projecting a potential recovery by 2026, despite the setbacks in market share.

The energy drink market is seeing steady growth in sales volume, even as global consumer trends remain uncertain. Monster has been one of the stronger performers tracked by RBC this year. However, RBC recently removed the stock from its focused list due to concerns about how it compares to other stocks.

In the U.S., Monster’s market share has been falling over the past few years. One key reason is the decline of its well-known Monster Green Can, which makes up 22% of its U.S. sales. Reports show that about 39% of households that used to buy the Green Can are now switching to low- or no-sugar options like Alani Nu, C4, and Celsius Vibe.

So, what’s next? RBC thinks Monster can regain some lost ground by changing its marketing. The focus is shifting to older and higher-income buyers. Monster also plans to launch more products aimed at women and improve core products, rather than investing in weaker ones like Reign Storm. New flavors like Monster Ultra Vice Guava and Blue Hawaiian have already helped slow down market share losses.

Globally, the picture looks brighter. Monster is gaining market share in 73% of the regions mentioned in its earnings calls. Its performance in EMEA (Europe, the Middle East, and Africa) is especially strong, with gains in 84% of countries. RBC has a positive long-term view and believes Monster could grow into a major global brand in the beverage space.

In the near term, traders may want to watch for updates from the upcoming shareholders' meeting. The company’s strategy plans could shape future trading decisions.