Energy Drinks Market

Market Overview

The global energy drinks market size was valued at USD 91.06 billion in 2022 and is predicted to reach at USD 188.15 billion by 2031, increasing at a CAGR of 8.47% from 2023 to 2031.

High amounts of stimulants including caffeine, ginseng, taurine, guarana, as well as others can be found in energy drinks. It enhances both mental and physical performance. Energy drinks can have carbonation or not. Unlike sports drinks, which take the place of electrolytes as well as water during and after physical exercise, they don't replace either. They are distinct from tea or coffee as well, which are brewed, include less ingredients, and sometimes offer decaffeinated versions.

The development of skeletal muscle and cardiovascular health depend on taurine, another important ingredient. The prognosis for the global energy drink market is heavily influenced by these factors. In the near future, market expansion is expected to be fuelled by rising health consciousness, changing consumer lifestyles, and growing consumer awareness of health and wellness products. Teen popularity also contributes to the expansion of the global market.

Market Dynamics

Global Energy Drinks Market Drivers

Demand For Health and Fitness Products Has Increased

Liquid calorie intake has become well-known among consumers because of the health risks it poses. New and creative food and beverage consumers want businesses to be more open about their offerings. Manufacturers of energy drinks should disclose the components of their products. Natural energy drink and healthful non-alcoholic beverages are seeing a rise in popularity as a result of these trends. Greater ease of access to data the duration of the public health catastrophe caused by the Covid-19 epidemic is currently unknown.

Caffeinated energy drinks are an excellent pre-workout choice. Pre-workout energy drinks contain the amino-acid-taurine, caffeine, sugar, as well as vitamins that help you stay energized and focused during your workouts. Taurine and B vitamins, two common elements in energy drinks, can also help you work out better. Packed drinks such as non-alcoholic beers are becoming increasingly popular with sports fans.

Players From Around the World and The Region Should Concentrate on Enhancing Their Visibility

There are many well-known manufacturers throughout the world looking to expand into new areas through joint ventures or acquisitions. Another important element in the growth of the ready-to-drink energy drink market is the wide availability of these drinks through a variety of distribution channels. Consumers can purchase 'Java Monster-Coffee + energy drinks' from Monster Energy Beverages, which are made with premium coffee and cream prepared with tastes, as well as an instant energy blend.

When it comes to packaging, product, and advertising, technical advancement is a major decision point for functional beverage manufacturers as they attempt to increase volume as well as consolidate market position. Sales of energy drinks are increasingly concentrated in hypermarkets/supermarkets, convenience stores, and specialty stores. Non-alcoholic beverages are seeing an uptick in e-commerce sales, thanks mostly to Gen Z and millennials.

Global Energy Drinks Market Restraints

Risk Associated with The Inclusion of Potentially Hazardous Elements

Consumers are alarmed by the possibility that products may contain substances such as prohibited colors and additives, industrial chemicals, drug residues, unreported allergies, and heavy metals. Intake of these residues has the potential to have negative health impacts, which could limit the growth of the Asia-Pacific non-alcoholic beverage market. Caffeine, taurine, as well as sugar boost insulin levels in these drinks, making them dangerous for diabetics. Extreme energy drinks ingredients make these inappropriate for a large proportion of potential customers. There are a lot of grey areas when it comes to kids' energy drinks.

Companies including Monster Energy Drinks say there is no age limit for drinking these drinks, although they agree that children under the age of 12 shouldn't be promoted to.. Brands such as Red Bull, Monster and Lucozade are among the most popular energy drinks on the market, as well as Rockstar and Hi-Tiger.

Global Energy Drinks Market Key Opportunities

Opportunities Will Be Available in Plenty Within the Sports Industry

It is projected that the energy drink sector would experience significant growth due to the robust demand seen throughout the sports industry. The number of sales made to sportspeople and athletes who want to increase their performance as well as stamina has been rising at an astonishing rate. As per the Australian-Institute-of-Sports-Nutrition, the carbohydrate component of these energy drinks contributes to improved performance by speeding up the body's recovery process and making the consumer feel more energized. Athletes are able to boost their performance thanks to the ergogenic benefits that caffeine provides. Because of these factors, the market for sports-related goods and services is expected to experience significant expansion, which will result in the creation of novel and fruitful opportunities for market growth.

Regional Analysis

The global energy drinks market is segmented by geography into North America, Europe, Asia-Pacific (APAC Region), Latin America, and Middle East & Africa (MEA).

In 2021, North America maintained the greatest revenue share, which was greater than 35%. The rising disposable income, the introduction of several domestic brands, as well as the increase in advertisement and promotion activities for product growth are all factors that can be attributed to the region's increasing demand for the product, which in turn can be attributed to the region's expanding consumption of the product. Because to shifting demographics as well as changing tastes and drinking patterns among consumers, North Americans have the highest per capita consumption of energy drinks of any regional market in the world.

The globalisation of markets as well as the migration phenomena both contributed to the change of drinking pattern of consumers who had been slowly introduced into regular drinking habits. These consumers were exposed to new types of alcohol over the course of their lifetimes. As a consequence of this, market participants now have additional chances to broaden their beverage offerings by including a wider variety of beverages in their product lines.

It is anticipated that the Asia-Pacific area will become the regional market with the highest rate of growth between the years 2022 and 2030. The market is anticipated to experience significant growth in the countries like China, India, as well as Japan as a consequence of consumers' readiness to try out new flavours and the increasing preference from immigrants living in a country who display an interest in a variety of beverages.

This growth is anticipated to take place as a consequence of consumers' intention to experiment the new flavours and as a result of immigrants' interest in various beverages. The demand for products in the region has been driven in large part by the introduction of new products in the region with the intention of targeting and appealing to a large number of consumers.

Segmental Analysis

The global energy drinks market is divided into different segments according to the Product, Type, Packaging, Distribution Channel, and Region (Geography).

By Product, the global energy drinks market is segmented into Drinks, Shots, and Mixers. With a revenue share of more than 55% in 2021, drinks are predicted to continue their dominance throughout the projection period. Consumption of beverages is on the rise because they satisfy the need for immediate hydration and provide substantial nutrients for the health of the body. As a result of the wide variety of drinks available, the market for these beverages has expanded.

Over the next few years, the mixers market is expected to rise at a rapid pace. The market has been propelled by the product's increasing accessibility as a mixer. Premium cocktails as well as alcoholic beverages are increasingly being made with mixers rather than spirits. In addition, a number of firms have been experimenting with novel flavors in mixers in order to attract new customers.

By Type, the global energy drinks market is segmented into Conventional and Organic. In 2021, the conventional segment accounted for over 59% of total sales, a share it is predicted to keep throughout the forecast period. The conventional segment is likely to rise during the projection period due to a lack of awareness among consumers of organic products. There is currently a dearth of consumer understanding about the advantages of organic functional beverages in the organic business, which is still in its infancy. Due to their various ingredients, conventional drinks are often less expensive than their organic counterparts.

Due to their perceived higher levels of minerals and antioxidants, organic drinks are expected to grow at a faster rate than conventional ones during the projection period. Concerns about pesticides and antibiotics, as well as highly processed, artificial ingredients, are driving an increasing percentage of health-conscious consumers to prefer organic products to conventional ones. As a result of this circumstance, organic energy drinks have seen an increase in sales.

By Packaging, the global energy drinks market is segmented into Cans, Bottles, and Others. More than 52% of 2021's income was generated by cans, which is predicted to hold its position during the forecast year. As consumers' tastes and preferences have evolved, they are increasingly choosing these beverages over other alcoholic beverages in cans. Metal cans are more popular among young people since they are lightweight and less likely to break than glass bottles. The coronavirus pandemic has resulted in the closure of bars, pubs, as well as restaurants, which has raised the size of the market in cans and is projected to continue throughout the forecast period.

The bottles market is expected to grow at the second-fastest CAGR during the forecast period. The ready-to-drink technology was first developed in the form of a bottle package and quickly gained popularity all over the world. In nations like the United States, where aluminum is in scarce supply, the product has been introduced in glass bottles. In addition, as people become more aware of the environmental damage done by drinks packaged in plastic bottles, the market for glass bottles has grown.

By Distribution Channel, the global energy drinks market is segmented into On-trade and Off-trade. More than 68 percent of the product's revenue came from the off-trade segment in2021, which is the predominant source of consumption. The rising popularity of energy drinks is partly to blame for the spike in product sales. Off-trade sales are boosted since customers purchase the products after inspecting the quality, ingredients, as well as brands in person. Off-trade channels, such as supermarkets and hypermarkets, are favored by most of the major businesses since they have a large client base.

From 2022 to 2030, the on-trade segment is predicted to increase at a significant rate. Many bars, restaurants and clubs are now serving a wide variety of these beverages as a result of the growing number of establishments offering them. As a result of this, goods sales are predicted to rise in the next years.

By Region or Geography, the global energy drinks market is segmented into North America, Europe, Asia-Pacific (APAC Region), Latin America, and Middle East & Africa (MEA). In 2021, North America accounted for more than a third of all revenue. It's also because more people have money to spend on the goods, more domestic companies have emerged, and more marketing and promotional efforts are being made to boost sales. From 2022 to 2030, the Asia Pacific is expected to be the fastest-growing regional market.

Recent Developments

• February 2022 - PepsiCo, Inc. introduced a hemp energy drink to the market in the United States in February 2022. This beverage included hemp oil, vitamin B, spearmint, lemon balm, and caffeine as some of its components.
• January 2022 - In collaboration with PepsiCo, Inc., Starbucks introduced its line of energy drinks in January of 2022. The item can be purchased in grocery stores, major retailers, and convenience stores all over the United States. Beginning in March 2022, the product will also be made accessible at Starbucks locations nationwide.
• January 2022 - Anheuser-Busch Companies LLC plans to offer energy drinks in India in January 2022. This decision was made since the millennial generation and wealthy consumers in India's major urban centres are the primary drivers of growth in the energy drink category.