Energy Drinks Market valuation is estimated to reach USD 89 billion by 2027 registering a CAGR of 5.80%. Energy drinks are consumed in the form of a beverage and have a high concentration of taurine, stimulants, caffeine, guarana, and ginseng amongst others. As the name suggests, they are recognized as helping n enhancing physical performance and improvise mental alertness.
Energy drinks are available in both carbonated and non-carbonated forms. They are different from sports drinks that are used as a replacement for electrolytes and water post any physical activity. Also, these are different from tea or code that are brewed and have fewer ingredients. The manufacturers claim that these products tend to increase energy levels after consumption. Also, these products promise mental and physical stimulation which is acting as one of the major reasons for the wide-scale development of the Energy Drinks Market during the forecast period. Taurine is a major component that is known to help in the development of skeletal development and smooth cardiovascular functioning.
COVID 19 Analysis of Energy Drinks Market
The arrival of the pandemic has staggered various kinds of productional and functional changes in the global Energy Drinks Market. The businesses and their market units are facing the wrath and the trends that the pandemic has introduced to the world. There is wide unavailability of resources to meet the demand of the production market and hence, this is disrupting the supply chain mechanism of the global market. Also, the production and manufacturing units are facing the problem of unavailability of skills labor that will work as per the marketing standards. The delivery is also hampered due to the unavailability of logistics and dire restrictions caused by the temporary and permanent lockdown imposed by governments across the globe.
The key market players across the globe are investing in the research and development industry verticals that have a major role to play in innovatively and creatively forming and advertising the products on a global scale. This is likely to help the players reach the target of expanding the customer base and adding to product variation that will help the energy drinks market cover the losses and grow during the forecast period. Also, the rising support from the government and public sector will help the market during the period.
The energy drinks market worldwide consumption is increasing amongst young adults on a large scale. Weekly, there is a 15.8% increase in worldwide consumption. The Global consumer survey and other studies show that employed and young people that have a low educational level have a higher stance for weekly energy drink consumption. This is likely to increase the demand and hence, positively impact the rate at which the market will grow during the forecast period.
One of the major ingredients of energy drinks is caffeine and access intake of the same might result in health issues like hypertension and nausea. This might have an impact on the global growth of the energy drinks market during the forecast period.
Owing to certain health benefits like muscle and cardiovascular development has a positive tomorrow for the market. People are increasing their consciousness towards their health and hence, bringing about changes in their lifestyle. Also, there is an increase in awareness amongst the target audience related to the wellness products that help in understanding the positive impacts that these energy drinks and other products offer. The energy drinks market is on the way towards offering technological advancements that are gaining major popularity amongst the youngsters.
The energy drinks market has been divided all across the globe based on type, packaging, and distribution channel.
Based on the Type
The energy drinks market has been divided all across the globe based on the type into the alcoholic type and non-alcoholic type. The largest market share in the global market is held by the non-alcoholic market dividend. Moreover, the alcoholic market dividend is expected to account for higher market share value during the forecasted period.
Based on the Packaging
The energy drinks market has been divided all across the globe based on the packaging into cans, bottles, cartons, and many others. The largest market share in the global market is held by the can packaging dividend owing to changing preference towards single-serve packaging.
Based on the Distribution Channel
The energy drinks market has been divided all across the globe based on the distribution channels into mass merchandisers, sport nutrition chains, drug stores, vending, convenience stores, supermarkets, and many others. The largest market share in the global market is held by the supermarket distribution channel in both developed as well as developing economies. Sports nutrition chains are also expected to account for higher market share value during the forecasted period.
The energy drinks market has been divided all across the globe based on the region into the North American region, Asia-Pacific region, European region, and the Middle East and African region. The largest market share in the global market is held by the European region owing to increasing awareness regarding fitness, health, and preventive health care. Obesity and the presence of a high geriatric population also drive market growth.
The North American region is likely to enjoy the second largest market share owing to changing lifestyles and increasing competition coupled with innovations in the spa market and the health club market directly increasing the demand for energy drinks in this region. Additionally, with increasing inactiveness among people along with stressful lifestyles more people are inclined towards health clubs and hence more demand for energy drinks.
The third-largest market share in the global market is held by the Asia-Pacific region owing to increasing awareness regarding health and fitness coupled with an improved standard of living. Indian market is one of the emerging markets for energy drinks in this region.
The Middle East and African region show the least growth towards the energy drink market owing to the non-availability of adequate health facilities. Moreover, people of these regions are less concerned about their health and fitness.
The most prominent major key players in the energy drink market all across the globe are mentioned below:
These major key players use various strategies to sustain their market position in the energy drinks market in the global market by going for mergers, and acquisitions, by collaborating, setting up a new joint venture, establishing a partnership, developing a new production process, developing a new product line, innovation in the existing product, and many others to expand their customer base in the untapped market of the energy drinks all across the globe.
The global energy drink market research report consists of the following elements mentioned below:
This market research report contains factors that drive the growth of the energy drinks market in the global market along with the factors that restrict its growth in the global market. The technical analysis for the growth estimation during the forecasted period is mentioned. The impact of COVID 19 on the sales revenue of the energy drinks market all across the globe is mentioned. The future growth rate in the energy drinks market during the forecasted period is estimated and mentioned.
Based on type, the non-alcoholic segment, based on packaging, the bottles segment, and based on distribution channel, the supermarkets segment, holds majority shares in the Global Energy Drinks Market.
Rising awareness among consumers about the benefits of energy drink and product promotion by distribution channels are major tailwinds pushing the growth of the Global Energy Drinks Market.
Europe holds the largest share in the Global Energy Drinks Market, followed by North America and the Asia Pacific, respectively.
Rock Star Inc. (U.S.), Red Bull (Austria), Dr Pepper Snapple Group (U.S.), Monster Beverage Corporation (U.S.), PepsiCo (U.S.), Mountain Fuel Co (U.K.), Coca-Cola (U.S.), Arizona Beverage Company (U.S.), Cloud9 (India), and National Beverage Corporation (U.S.), are some of the top players operating in the Global Energy Drinks Market.
Strategic initiatives such as mergers & acquisitions, collaborations, expansion, and technology/ product launch are some of the growth strategies that players operating in the global energy drinks market adopt to gain a larger competitive advantage.