Energy Drinks Market Expected to Reach $108.40 Billion by 2031

According to a new report published by Allied Market Research, titled, “Energy Drink Market by Type (Alcoholic, Nonalcoholic), by End User (Kids, Adults, Teenagers): Global Opportunity Analysis and Industry Forecast, 2022–2031,” The energy drink market was valued at $45.80 billion in 2020, and is estimated to reach $108.40 billion by 2031, growing at a CAGR of 8.2% from 2022 to 2031.  

The adults segment accounted for the maximum share in 2020. Energy drinks are beverages that contain caffeine, taurine, vitamins, & other stimulants, and are marketed as products that boost mental alertness and physical stamina. They may or may not be carbonated. According to reports, the demand for energy drinks and related items has increased at an alarming rate. This is due to the advantages that these beverages provide, such as improved performance, focus, weight loss, stamina, and so on. Furthermore, consumers, particularly men, positively link energy drink intake with risk-taking activities and masculinity. Furthermore, energy drinks have more caffeine than a cup of coffee and can help with alertness and concentration. Owing to the surge in demand for items that provide rapid energy, manufacturers create a variety of products with distinct flavors and tastes. This, in turn, is expected to support the global energy drink market growth. 

The nonalcoholic segment accounted for the highest energy drink market share in 2020, garnering the highest share, because such products boost energy by improving physical and cognitive performance. This segment is also expected to witness healthy growth in the energy drinks market in the future. 

The alcoholic energy drink segment accounted for a significant share of the total market in 2020, due to an increase in the consumption of alcoholic beverages by regular partygoers. This has led to a surge in demand for alcoholic energy drinks. In addition, it has turned into a status symbol, especially for teenagers; therefore, consumption of alcoholic energy drinks has witnessed increased popularity, thereby boosting the energy drink market opportunities. 

In 2020, by end user, the adult segment acquired the maximum market share of around 46.1% and is anticipated to grow with the highest CAGR of 8.5% during the energy drink market forecast period. This has been attributed to a rise in trend among corporates and athletes, who consume energy drinks for an extra dose of energy to enhance their performance. In addition, the surge in riboflavin content helps to minimize cramps in muscles and blood disorders. Energy drinks are popular among athletes as they provide an extra boost of energy, aid with sleep deprivation, raise alertness, improve cognition, and elevate mood. Athletes also use energy drinks to combat the depressing effects of drinking by boosting the central nervous system. 

However, caffeine overdose may cause hypertension, nausea, restlessness, and other associated health risks that may limit the energy drink industry's growth during the forecast period. The caffeine level of energy drinks is primarily responsible for the primary health concerns linked with their usage. Caffeine can cause hypertension, palpitation, dieresis nausea, central nervous system stimulations, and vomiting if used in excess. Adults are also at a higher risk of developing arterial hypertension and diabetes. Furthermore, pregnant women who consume a lot of caffeine are more likely to have late miscarriages and stillbirths. Furthermore, adolescent usage of energy drinks is linked to several potentially dangerous health and behavioral effects, including the use of nicotine and other toxic substances, sensation seeking, and a higher risk of accidents & depression that may necessitate medical treatment. Such unfavorable characteristics function as impediments to the expansion of the market.  

Moreover, the implementation of stringent government regulations on increased caffeine content in energy drinks hinders the growth of the market at the global level. Excess consumption of caffeine by teens and young people may result in ill effects. Therefore, such factors negatively impact the growth of the global energy drink market. Energy drinks provide a much-needed boost to the working population and consumers during their working hours; unfortunately, such beverages include caffeine and other dangerous ingredients. As a result, the market for energy drinks is hampered by the availability of alternative beverages such as green tea, ginger root tea, coffee, fresh juice, and others.  

In addition, coffee drinking lowers the effect of caffeine on energy beverages. Although espresso coffee has a richer flavor, it usually has less caffeine than drip coffee. Furthermore, omitting sugar from coffee or substituting stevia or honey for it prevents sugar overdose. As a result, such alternatives stifle the expansion of the global energy drink market. 

According to energy drink market analysis, by region, Asia-Pacific is expected to witness the highest growth rate of 8.8% during the forecast period, owing to an increase in disposable income and change in consumption & lifestyle patterns as well as demographic and energy drink market trends. 

The major companies 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 FINDINGS OF THE STUDY 

• Region wise, Asia-Pacific is anticipated to lead the market in 2031, growing at a CAGR of 8.8%, from 2022 to 2031. 

• By type, the nonalcoholic segment occupied the highest share of the energy drink market share in 2020. 

• By end user, the adult segment dominated the overall energy drink market size in 2020, and is expected to grow at a CAGR of 46.1% during the forecast period. 

• The kids segment is anticipated to grow at a significant CAGR of 14.4%.