Energy Drinks Market

The global energy drinks market size was valued at $45.80 billion in 2020, and is projected to reach $108.40 billion by 2031, growing at a CAGR of 8.2% from 2022 to 2031. 

Energy drink is a beverage that contains high concentration of stimulants, majorly caffeine, taurine, ginseng, guarana, and others. It enhances physical performance along with mental alertness. Energy drinks may or may not be carbonated. They differ from sports drinks, which are used to replace electrolytes and water during or after physical activity. In addition, they are distinguished from tea and coffee, which are brewed, contain lesser ingredients, and may be decaffeinated. Manufacturers of energy drinks claim that their products improve energy levels. One of the key reasons for energy drinks market growth is popularity of energy drinks that they provide instant energy along with mental and physical stimulation. Furthermore, taurine, another major component, is essential for cardiovascular function and skeletal muscle development. These factors are the substantial drivers of the global energy drinks market forecast. Moreover, increase in health consciousness along with change in consumer lifestyle and rise in awareness toward health wellness products are expected to fuel the market growth in the near future. In addition, the growth of the global market is driven by rise in popularity among teenagers. However, caffeine overdose may cause hypertension, nausea, restlessness, and other associated health risks that limit the energy drinks industry growth. On the contrary, change in consumer preference toward consumption of beverages and healthy lifestyle is anticipated to create lucrative opportunities for market expansion during the forecast period. 

The market is segmented based on type, end user, and region. Depending on type, the market is bifurcated into alcoholic and nonalcoholic. By end user, it is classified into kids, adults, and teenagers. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

The outbreak of the COVID-19 disease in 2020 had a moderate Impact on the market. The supply chain disruptions, lack of labor, partial or complete closure of manufacturing facilities, and difficulties in the procurement of raw materials were the major issue faced by the manufacturers during the pandemic.

In 2020, the nonalcoholic segment accounted for the higher share in the market, owing to the fact that nonalcoholic drinks boost the energy by improving physical and cognitive performance. In addition, presence of caffeine in nonalcoholic energy drinks provides the user with increased alertness, improved memory, and elevated mood. This segment captured the maximum share in 2020. Furthermore, this segment is expected to grow at a significant rate during the forecast period. This is attributed to the fact that over the past few years, the nonalcoholic energy drinks segment has been transformed from being a niche product category to one of the most rapidly growing product categories in the global energy drinks market. Rise in popularity among teenagers and surge in health consciousness are anticipated to foster the growth of the nonalcoholic energy drinks segment during the forecast period.

By end user, the adults segment acquired the maximum market share in 2020 due to rise in consumption of energy drinks by working adults to maintain a healthy lifestyle. This segment is anticipated to grow with the highest CAGR during the forecast period owing to increase in consciousness toward intake and diet among sports athletes.

In 2020, North America dominated the market. However, Asia-Pacific is expected to grow at the highest CAGR of 8.8% throughout the forecast period, owing to increase in disposable incomes and change in demographics. Asia-Pacific along with North America contributed more than 55% in the global energy drinks market share. The market in North America is primarily driven by surge in health concerns and rise in awareness toward the benefits of consuming energy drinks.

Easy availability of energy drinks in diversified platforms ranging from modern trade to online sales channel has resulted in expansion of global market. Moreover, increase in penetration of retail sales has augmented the growth of the market. In addition, availability of energy drinks on e-commerce platforms have resulted in convenience to buy goods without any physical constraints to the consumers. E-commerce not only offers convenience and comfort, however also provides information regarding products, prices, benefits, and comprehensive value evaluation before committing purchase.

The key players operating in the market focus on expansion as the prominent strategy to overcome competition and to maintain as well as improve their market share in the global market. The key players profiled in the report include Red Bull, Monster Beverage Corporation, Rockstar Inc., The Coca-Cola Company, PepsiCo, Arizona Beverage Company, National Beverage Corp., Dr. Pepper Snapple Group, Living Essentials, and Cloud 9.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the energy drinks market analysis from 2020 to 2031 to identify the prevailing energy drinks market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the energy drinks market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global energy drinks market size.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global energy drinks market trends, key players, market segments, application areas, and market growth strategies.

 Energy Drinks Market Report Highlights