Energy Drink Market Research, 2031
The global energy drink 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 drinks are beverages that contain a 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 fewer ingredients, and may be decaffeinated. Manufacturers of energy drinks claim that their products improve energy levels.
Market Dynamics
One of the key reasons of the energy drink market growth is the popularity of energy drinks that provide instant energy and 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 drink market forecast. Moreover, an increase in health consciousness along with the change in consumer lifestyle and rise in awareness toward health wellness products are expected to fuel market growth in the near future. In addition, the growth of the global market is driven by a rise in popularity among teenagers. However, caffeine overdose may cause hypertension, nausea, restlessness, and other associated health risks that limit the energy drink industry's growth. On the contrary, a change in consumer preference toward the consumption of beverages and a healthy lifestyle is anticipated to create lucrative opportunities for market expansion during the forecast period.
In addition, the easy availability of energy drinks in diversified platforms ranging from modern trade to online sales channels has resulted in the expansion of the global energy drinks market. Moreover, the increase in penetration of retail sales has augmented the growth of the market. In addition, the availability of energy drinks on e-commerce platforms has resulted in the convenience of buying goods without any physical constraints to the consumers. E-commerce not only offers convenience and comfort; however, but it also provides information regarding products, prices, benefits, and comprehensive value evaluation before committing to purchase.
Segment Overview
The energy drink market is segmented based on type, end user, and region. Depending on the 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.
BY TYPE
In 2020, the nonalcoholic segment accounted for the higher share in the market, because nonalcoholic drinks boost energy by improving physical and cognitive performance. In addition, the 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 drink segment has been transformed from being a niche product category to one of the most rapidly growing product categories in the global energy drink market. A rise in popularity among teenagers and a surge in health consciousness are anticipated to foster the growth of the nonalcoholic energy drink segment during the forecast period.
By Type
Nonalcoholic segment was the leading segment during forecast period.
BY END USER
By end user, the adults segment acquired the maximum market share in 2020 due to the 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 an increase in consciousness toward intake and diet among sports athletes. The growing demand for functional beverages that improve alertness, and stamina is driving the adult end-user segment of the energy drink market. Consumption is fueled by busy lives, rising workplace stress, and fitness trends. Energy drinks made with natural ingredients and without added sugar are becoming more popular among health-conscious individuals who want long-lasting energy without using too many stimulants.
By End User
Adults segment Enterprises segment was the highest revenue contributor during the forecast period.
BY REGION
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 an increase in disposable incomes and changes in demographics. Asia-Pacific along with North America contributed more than 55% of the global energy drink market share. The market in North America is primarily driven by a surge in health concerns and a rise in awareness of the benefits of consuming energy drinks. Well-known companies like Red Bull, Monster Beverage, and PepsiCo are adding low-sugar, healthier options to their product ranges. The market is fueled by the rise of esports, fitness trends, and hectic lifestyles. The US leads the region, while sales have also increased in Canada and Mexico. Future trends are being driven by innovations in natural ingredients and environmentally friendly packaging that appeal to consumers who are health conscious.
By Region
The North America accounted for the highest share in the market
Competition Analysis
The key players operating in the energy drink market analysis 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.
Some Key Developments In The Market
In October 2024, Keurig Dr Pepper declared that it had paid $990 million to acquire a 60% stake in the energy drink firm Ghost, with the remaining shares to be acquired in 2028.
In December 2024, the well-known energy drink from the 1980s, Jolt Cola, is scheduled to make its comeback in early 2025. Targeting both a new generation of consumers looking for high-caffeine energy drinks and nostalgic consumers, the redesigned beverage will have 200 milligrams of caffeine per 16-ounce can.
In January 2023, the goal of Monster Beverage Corporation's Predator energy drink brand was to gain a substantial portion of the growing energy drink market in China.
Key Benefits For Stakeholders
This report provides a quantitative analysis of the current energy drink market trends, estimations, and dynamics from 2020 to 2031 to assist in identifying the prevailing market opportunities.
Major countries in each region are mapped according to the individual market revenue.
The region-wise and country-wise market conditions are comprehensively analyzed.
This study evaluates the competitive landscape and the value chain analysis to understand the competitive environment across geographies.
An in-depth analysis of each segment of the market is provided to assist the prevailing energy drink market opportunities.
Energy Drinks Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 108.4 billion |
 Growth Rate | CAGR of 8.2% |
 Forecast period | 2020 - 2031 |
 Report Pages | 187 |
 By Type |
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 By End User |
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 By Region |
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 Key Market Players | Living Essentials, Monster Beverage Corporation, PepsiCo, National Beverage Corp, Keurig Dr Pepper Inc., Rockstar Inc, Arizona Beverage Company, The Coca-Cola Company., red bull, SUNTORY HOLDINGS LIMITED |
Analyst Review
Energy drinks are beverages that are marketed to boost energy and enhance performance. These usually contain caffeine, sweeteners, guarana, taurine, and other ingredients. They differ from sports drinks, as sports drinks are fluids used for hydration during strenuous activity. These drinks do not contain stimulants, however, presence of electrolytes and carbohydrates in sports drinks replenish those lost and used during exercise. 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 growth in popularity of energy drinks is that they provide instant energy along with mental and physical stimulation. Most sportsmen and sportspeople like to drink energy drinks as they provide an extra surge of energy, help with sleep deprivation, maintain alertness, increase wakefulness, and improve cognition & mood. Athletes utilize energy drinks to boost the effects of alcohol by stimulating the central nervous system, which counteracts the depressive effects of alcohol.
In 2020, the non alcoholic segment accounted for the highest share in the energy drinks market, owing to the fact that these products boost 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.
By end user, the adults segment accounted for the maximum market share in 2018 due to rise in consumption of energy drinks by working adults to maintain a healthy lifestyle.
In 2020, North America dominated the global energy drinks market owing to surge in health concerns and awareness toward the benefits of consuming energy drinks. Asia-Pacific is anticipated to grow at the highest rate during the forecast period, owing to surge in disposable income and change in demographics
The global energy drinks market size was valued at $45.80 billion in 2020, and is projected to reach $108.40 billion by 2031
The global energy drinks market is projected to grow at a compound annual growth rate of 8.2% from 2022 to 2031 $108.40 billion by 2031
Keurig Dr Pepper Inc., PepsiCo, Monster Beverage Corporation, Rockstar Inc, The Coca-Cola Company., Arizona Beverage Company, National Beverage Corp, Living Essentials, red bull, SUNTORY HOLDINGS LIMITED
In 2020, North America dominated the market.
Demand for Instant Energy and Mental Alertness, Rising Health Consciousness and Lifestyle Changes, Increased Consumption Among Teenagers and Young Adults, Functional Ingredients with Health Claims, Product Innovation and Variety.
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