In 2025, many prominent stocks in the market are experiencing declines, resulting in the S&P 500 index decreasing by 7% from its peak in February. This downturn has caused numerous investors to shy away from riskier growth stocks. However, several promising growth stocks continue to thrive, including Celsius Holdings, which presents a compelling long-term investment. Despite potential fluctuations, its stock has seen a rise of 17.8% in 2025 and 46.8% from last summer’s dip related to distribution challenges.
Celsius Holdings is gradually making waves in the energy drink market, challenging the long-standing dominance of Monster Beverage and Red Bull with its health-oriented products. In contrast to its competitors, Celsius encountered some setbacks in the previous year when PepsiCo, its distribution partner, paused orders for several months, reducing its market share in the U.S. energy drink sector from 8.1% in late 2023 to 7.3% by the end of 2024. Despite a 39% increase in international sales, the company’s overall revenue for the fourth quarter declined by 4% year over year.
International expansion is crucial for Celsius’ future prospects. Overseas sales have risen to 6.1% of their total revenue, up from 4.2% the previous year. Recently, the company has targeted the Benelux region, following earlier expansions into markets like France, Ireland, the U.K., Australia, and New Zealand, while Canada remains a smaller target market. The company is strategically exploring various international opportunities and forming partnerships to facilitate growth unlike its major competitors.
Celsius is forming a diverse network of alliances, which includes distribution in the U.S. and Canada through PepsiCo, while other countries are managed by Suntory Beverage and Food, a Japanese entity. This approach enables flexibility, allowing the company to potentially form additional agreements with local experts where existing partners do not suffice.
In addition to these global ventures, Celsius is set to acquire Alani Nu, a smaller energy drink company, for $1.65 billion. This acquisition aims to tap into the growing segment of female energy drink consumers due to Alani Nu’s focused marketing and unique flavor offerings. The company’s expansion into international markets will take time, potentially leading to stock volatility. Nonetheless, it is poised to see international sales grow to rival its domestic success. With Monster Beverage’s international sales representing 41% of its revenue in 2024, the potential for Celsius is significant.
Overall, Celsius represents an exciting growth opportunity within the U.S. and internationally, with a health-focused brand aligning well with the Alani Nu acquisition to target a well-defined segment. It is a noteworthy investment, offering the potential for robust returns over time despite possible short-term volatility.
