Energy Drinks Market: Overview
The market size for Energy Drinks was USD 46.5 billion in 2021, and it is projected to grow at a CAGR of 7.9 percent during the forecast period. Energy drinks are within the wider category of soft drinks, including fruit and vegetable juices, bottled water, sports drinks, beverage concentrates, ready-to-drink tea, and ready-to-drink coffee. Experts claim that multivitamins and energy drinks are the most well-liked supplements for teenagers and young adults in the United States. Men between 18 and 34 consume the bulk of these beverages. The youthful population's growing need for energy boosters during parties and clubs is boosting the demand for energy drinks in India over the medium term. The demand for energy drinks, and non-carbonated beverages, has grown due to increased urbanization, rising disposable income, and rising health consciousness among the Indian young. Indian customers are increasingly turning to energy drinks, which are largely categorized as non-alcoholic, caffeinated, and sports beverages, due to long and unpredictable work hours and increased social events. Energy drink sales have increased recently due to changing consumer habits and rising demand for alcohol mixers.
For Instance, PepsiCo. Inc. launched a new line of energy drinks in March 2021 called "Mtn Dew Rise Energy," which is especially geared at customers in the morning. Coffee, vitamins A and C, antioxidants, and fruit juice are all included in the product. Additionally, it includes zinc to strengthen the immune system and citicoline to improve mental clarity. The business launched this strategic initiative to expand beyond its primary soda line and into functional beverages and energy drinks.
Additionally, consumers' heightened health consciousness has led to a rise in the demand for functional beverages rather than non-carbonated ones, which are rich in calories. Additionally, producers have not switched their attention away from sports; rather, teens and young adults are the main markets for energy drinks, expanding the industry and producing plenty of prospects. For Instance, the largest brewer in the world, A.B.A.B. InBev, with its headquarters in Belgium, introduced "Budweiser Beats" in India in October 2021. The energy drink is a first for Budweiser in any market.
Energy Drinks Market: COVID-19 Impact
The COVID-19 pandemic has benefited market expansion. The market sector expanded once the COVID-19 epidemic swept the world, even though demand for the product was already growing. The causes causing the increase in demand are growing health concerns, convenience, improved quality, and variety of these beverages. Following the closing of pubs and restaurants in March 2020, customers purchased goods from internet marketplaces. The market growth benefitted from this trend. Due to orders placed by people staying at home worldwide, the product's sales through e-commerce channels dramatically increased.
Energy Drinks Market: Drivers
Consumer Preference for Low-Sugar and Sugar-Free Beverages is Growing, which Enhances the Market
Due to the growing prevalence of diabetes, consumers are becoming more aware of the need for a balanced diet and an active lifestyle. Due to growing health concerns and intensified efforts to stop the growth of lifestyle diseases, consumers are adopting low-calorie, low-sugar, or sugar-free dietary patterns in foods and beverages. In drinking beverages, consumers like stevia and other natural sweeteners. Companies like Coca-Cola and PepsiCo Inc. have committed to reducing sugar in their products and doing away with artificial additives. Furthermore, beverage manufacturers created new products in response to changing consumer preferences for sugar-free or low-sugar beverages. As consumers try to avoid sugary drinks to prevent the detrimental effects of excessive sugar intake, these businesses are developing various new products to meet the growing demand for such things. Energy drink companies, like Red Bull, adopted a similar approach, broadening their product lineup to satisfy the demands of consumers who care about their health. Considering this factor, Red Bull's Red Bull Zero was unveiled in the Market.
Consumption of Packaged Soft Drinks Has Increased in Market as They Provide Vital Natural Nutrients
The Market for non-carbonated bottled beverages has shown tremendous growth over the past two years, despite the continued popularity of traditional and handmade drinks. The demand for non-carbonated drinks is expanding due to several causes, including rising disposable incomes and more health awareness. Due to this expansion, the energy drink market is being driven by industry participants' increased focus on energy and health drinks. The packaged soft drink segment of the Indian energy drink market is being driven by consumers' increasing preference for naturally healthy, packaged foods and beverages linked to fortified/functional, organic, or better-for-you products because they are believed to offer essential natural nourishment.
Energy Drinks Market: Restraints
Health Issues Associated with Energy Drink Consumption to Limit Market Growth Hinders the Market
The potential of substances, such as banned colours and additives, drug residues, industrial chemicals, hidden allergens, and heavy metals, is causing consumers more and more anxiety. The health consequences of consuming these residues will probably be a barrier to the non-alcoholic beverage market's expansion in the Asia Pacific area. Energy drinks are not advised for people with diabetes as they raise insulin levels and include considerable amounts of sugar, caffeine, and taurine. Due to the excessive amounts of chemicals in energy drinks, they turn off a sizable portion of potential customers. On kids' energy drinks, the lines are hazy. While companies like Monster Energy Drinks agree that these beverages shouldn't be advertised to children under the age of 12, they yet state there is no minimum age for consumption.
Energy Drinks Market: Segment Overview
As a Result of Their Greater Portability, Ready-To-Drink Category are More Popular in Market
As per a revenue share in 2021, the Ready-To-Drink (RTD) category is predicted to keep leading over the projection period. Because consumers' tastes and options have evolved, they are increasingly choosing these drinks over bottled wine and other alcoholic beverages. Because they are more portable and don't break like glass, young customers prefer metal cans. As a result of the closure of bars, pubs, and restaurants due to the coronavirus pandemic, demand for the product in cans has greatly surged and is anticipated to keep growing during the projected period. Many of the functional energy drinks that people are seeking come in cans. As a result, the producers have been making more product releases in this format to capture this Market.
Natural Energy Drinks Category Dominates Market as They Frequently Cost Less
The total revenue in 2021 came from the Natural Energy Drink category, which is anticipated to continue to lead throughout the forecast period. Over the foreseeable period, low consumer awareness of organic goods would help this category to develop. The organic sector is still in its infancy, and consumer knowledge of the advantages of functional beverages made from organic ingredients is notably low. Additionally, because natural beverages include different components, they are often less expensive than their organic equivalents. Because these beverages offer a higher profit per square inch of shelf space, retailers tend to favor them over organic drinks.
Energy Drinks Market: Regional Landscape
North America dominates Market Due to High Percentage of Energy Drink Usage in Region and Widespread Coffee Culture.
Energy shots have become widely accepted in the United States thanks to the country's high energy drink consumption rate and extensive coffee culture, which is a key component in the growth of the energy drink industry there. In the United States, energy drinks are crucial to social events, celebrations, and parties. Energy drink producers like Red Bull and Monster Beverages provide their products in various tastes and two main container types, P.E.T. bottles and cans, giving customers a vast selection from which to choose their preferred beverages. Additionally, the nation's use of soda is drastically falling, which has created a fantastic opportunity for producers like Coca-Cola and PepsiCo, who are attempting to capitalize on the awareness of their venerable brands by making a greater impression in the expanding energy drink market.
The number of people engaging in fitness activities has significantly increased due to the rising incidence of chronic medical disorders. One of the main reasons energy drinks are so popular worldwide is that they help athletes recuperate from workouts more quickly. Additionally, sedentary lifestyles and the hectic schedules of working professionals are changing consumer preferences such that functional beverages are becoming more popular. This, in turn, is assisting in the Market'sMarket's expansion. Additionally, the popularity of ready-to-drink beverages is positively impacting the demand for energy drinks on e-commerce websites. In addition, top industry players are launching product variations made with natural, plant-based components and offering unique tastes. For Instance, Metta Beverage Corp. offers a variety of natural drinks with tastes like sea salt, blueberry, ginger, lemon, and adaptogens. In keeping with this, businesses spend more money on marketing initiatives like celebrity endorsements to draw in a sizable customer base. This encourages people to drink energy drinks, along with the growing effect of social media.
Global Energy Drinks Market: Competitive Landscape
Monster Beverage Corp. intended to combine with a worldwide beverage and alcoholic corporation constellation brands Inc. in November 2021. It's challenging for new and small businesses to compete in the energy drink industry because of the level of competition there. Some of the numerous businesses with significant market shares in the energy drink sector are Monster Beverage Corporation, Red Bull, The Coco-Cola Company, Rockstar Inc., and PepsiCo. To increase the efficiency of their energy drink manufacturing, market players emphasize customization and convenience while offering healthy, calorie-free, and low-sugar functional energy drinks. Product launches may also enable businesses to take advantage of the enormous development potential in developing nations. Most businesses use advertising and celebrity endorsements to raise consumer awareness of their products. For Instance, producers of energy drinks fund sporting events.
Few of the Energy Drinks Market include Monster Beverage Corp., Kraft Foods Inc., The Gatorade Company, Inc., PepsiCo Inc., Coca-Cola Co., Red Bull GmbH, Nestlé S.A., Carlsberg A/S, NEALKO ORAVAN,spol s.r.o, Kabisa B.V., Suntory Holdings Ltd., Asia Brewery Incorporated, Otsuka Pharmaceutical Co., Dali foods group, L.T.L.T. Group Inc and Shenzhen Eastroc Beverage Co Ltd.
Global Energy Drinks Market is Segmented as Below:
By Product Type
Key Elements Included In The Study: Global Energy Drinks Market
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