Energy Drinks Market Size is Projected to Display Remarkable Growth till 2025 | Hexa Research

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The global Energy Drinks Market is projected to witness significant growth in coming years owing to rising health awareness among consumers. Energy drinks are extensively employed by sports players and athletes. Young and adult population is also consuming various energy boosters while gymming or doing regular exercise. These boosters offer instant power along with physical and mental stimulation. Major ingredients present in these drinks are caffeine, guarana, taurine, and vitamin B.

Shifting consumer preference from carbonated drinks to energy drinks is anticipated to propel market growth. Introduction of sugar-free beverages attributed to rising global pressure to reduce sugar content in drinks can augment market growth. Manufacturing companies are expected to advertise their products as zero calorie or zero sugar beverages. Such healthy products are likely to gain traction among consumers following healthy lifestyle, which in turn can propel market expansion in coming years. In addition, availability of energy drinks in various flavors such as lemon, ginger, tropical berry, and coconut, can boost product sales and increase market revenue. Consumers are also expected to mix alcohol with energy drinks. Rising preference for mild alcoholic beverages among consumers is anticipated to propel demand for alcoholic energy beverages, which in turn, can further impel market growth in coming years.

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Availability of alternatives, such as aerated beverages, packaged juice, and malted health beverages, at economic rates can hamper market growth. Growing concerns regarding health risks, such as sleeplessness, urination, and abnormal heart rhythms, due to excessive consumption of caffeine can challenge the market in future.

However, introduction of caffeine-free beverages by manufacturing companies is anticipated to create lucrative opportunities in the market. Companies are increasingly focusing on product differentiation for strengthening their presence in the market. For instance, Red Bull is expected to separate its products by adding taurine and market it as a premium product among consumers.

The market can be segregated on the basis of product type, end user, and distribution channel. Key product types in the market include non-organic, organic, and natural. Adults, teenagers, and geriatric population are the major end users of energy drinks. Distribution channels employed in the market include on-trade and off-trade. Off-trade channels include super markets, drug stores, and mass merchandisers, whereas on-trade includes coffee shops, bars, and hotels.

North America is a leading region in the market attributed to presence of leading market players, such as PepsiCo, Coca Cola, and Red Bull. These companies are likely to introduce beverages with attractive ingredients and gain traction among consumers. For instance, Coca Cola is expected to launch a range of energy drinks for the first time. The beverage is likely to have naturally-derived caffeine and guarana extract. Guarana is a plant having anti-oxidant properties and four times the amount of caffeine present in coffee beans. High demand for beverages loaded with caffeine among local consumers is likely to boost regional market growth in coming years. Similarly, Gatorade launched sugar free sports drink for its consumers.

Asia Pacific is predicted to witness significant growth attributed to rising health awareness among consumers. Countries, such as China and India, are contributing significantly to market growth owing to increasing consumption of energy beverages. Rising preference for walking among individuals to remain fit in Japan and China is likely to increase the consumption of low sugar beverages in these countries. Launch of new products by local manufacturing companies can also stimulate market expansion in coming years. For instance, CCL Products Limited launched ready-to-drink coffee in India. Three-in-one sachets will contain spray dried milk powder, instant coffee, and sugar. Consumers can add hot water to the content and enjoy instant coffee. Moreover, popularity of sports in India and China can augment product demand in the region in future.

Some of the leading companies operating in the energy drinks market are PepsiCo, Red Bull GmbH, The Coca-Cola Company, Nestle S.A., and Monster Beverage Corporation.

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