Energy Drinks Market size was valued at $57.4 billion in 2019 and is poised to grow at a CAGR of 7.0% percentage during the forecast period 2020-2025. Energy drinks are beverages that contain stimulant compounds such as taurine, caffeine, vitamins, glucuronolactone, proprietary blends, herbal extracts, and amino acids, which boost physical stamina and mental alertness. Energy drinks help to avoid dehydration during exercise. Initially, introduced under dietary supplements, but owing to characteristics to provide consumers with sustained energy and reduce physical and mental fatigue, they came under energy drink. Owing to the increasing income, rising sports activities and urbanization are the major reasons for market growth. An Enhanced network of convenience stores, supermarkets, and online channel is set to contribute, to the growth of the energy drinks market for the forecast period (2020-2025).
By Source – Segment Analysis
The global Energy Drinks Market based on source has organic and Non-organic segments. The non-organic segment registers for the highest market share in 2019, and is set to continue for the forecast period (2020-2025). The organic segment is set to emerge owing to the growing consumer trend towards the importance of organic food and beverages in their dietary habits. This has positively influenced the segment demand in the industry. The organic and natural energy drinks market is set to increase in Europe and Asia-Pacific owing to increasing stringent regulations in the region.
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By Distribution Channel – Segment Analysis
The Distribution Channel segment of Energy Drinks Market has offline and online segments. The offline segment Energy drinks dominated the global industry in the year 2019, owing to the well-established marketing channels and long-term collaborations with the sellers. Besides, easy to approach the consumers was the additional factor for the offline segment.
The online segment is set to witness the highest CAGR growth with 6.4% over the forecast period 2020-2025, owing to shifting consumer preference towards direct selling and collaborations with supermarkets and other online retailers. The online segment is predominant by bulk discounts and additional investments for advertisements and promotions, which is poised to increase the market in the forecast period (2020-2025).
By Geography – Segment Analysis
The global Energy Drinks Market by geography had the dominant share in North America accounting for 43% of the market share in terms of revenue in 2019. North America has emerged as the key consumer of Energy Drinks products and estimated to remain the same in the forecast period 2020-2025. Asia-Pacific is a growing market for energy drinks, owing to the change in demographics and increasing disposable income. On the other hand, Europe is an emerging market, which is poised to grow at a healthy rate, owing to the combined increase in consumer adoption rate in the region and marketing efforts of the key players.
Drivers – Energy Drinks Market
The demand for Energy Drinks is driving forward owing to the increase in the consumer-oriented advertisements. Besides, the strategic adoption of companies for promoting their product through cross-promotional tactics such as integrating their product through sports events or advertising their product in connection with popular music icons are acting as drivers for supporting the growth of the energy drinks market.
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Challenges – Energy Drinks Market
The Fluctuation of Raw Material
Increasing government regulations in many countries, rising commodity prices, exchange rate fluctuations, and increasing electricity costs, have contributed to increased prices for these beverage categories, which is a challenge for companies in the industry.
Energy Drinks Industry outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Energy Drinks Market. Key companies of this market are Heinz, GSK, Goldwin Healthcare, Power Horse, Nourish Co., Taisho Pharmaceutical Co Ltd., Monster Energy, Red Bull, PepsiCo, Coca-Cola, and others.
In June 2018, Vita Coco owner All Market Inc. acquired energy drink brand Runa. This acquisition is beneficial in providing eight flavours which rich in nutrients like flavonoids and polyphemols.
In April 2019, Coca-Cola launched its first energy drink at United Kingdom region, which is beneficial in providing direct competition with top market leaders. The drink consist of caffeine from naturally derived sources guarana extracts and B vitamins and aim at young age groups.
Geographically, North America’s Energy Drinks market accounted for the highest revenue share in 2019 and it is poised to dominate during the forecast period 2020-2025 owing to the high demand.
Energy drinks from being a niche product have transformed into one of the fastest-growing products in the drinks market. This is set to grow the market.
Based on the age group, adults contributed to the highest market share in 2019, and the teenagers segment is set to grow for the forecast period 2020-2025
Related Reports :
A. Sports & Energy Drinks Market
B. Asia Pacific Sports & Energy Drinks Market
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