Energy Drinks Market

Energy Drinks Market Size, Share, Growth (2023-2028)

Energy Drinks Market size will be expected worth US$ 72.72 billion in 2023 to have a value of US$ 104.39 billion by 2023 with a CAGR of 7.50% during 2023-2028.

Energy Drinks Market Scenario

A high concentration of stimulants, including caffeine, taurine, ginseng, guarana, and others, can be found in energy drinks. It improves both mental and physical performance. Energy drinks can have carbonation or not. They are distinct from sports drinks, which are used during or after physical activity to replenish electrolytes and water. Additionally, they differ from tea and coffee, which are brewed, have fewer ingredients, and sometimes contain decaffeinated versions. Energy drink producers assert that their goods increase vigor. The popularity of energy drinks, which offer immediate energy along with mental and physical stimulation, is one of the main factors driving the market growth for energy drinks. Taurine, another important component, is also necessary for the growth of skeletal muscle and the cardiovascular system. The prediction for the global energy drink market is primarily driven by these variables. In addition, rising consumer lifestyle changes increased health consciousness, and increased awareness of health and wellness products are anticipated to drive market expansion in the next years.

Energy Drinks Market Drivers

The demand for energy drinks increased as urbanization, disposable income, and consumer health consciousness all increased. Teenagers frequently use energy drinks because they promise to increase performance, stamina, and alertness. At the same time, consumers are being influenced to drink energy drinks by lengthy, unpredictable work hours and an increase in social events. ​In addition, the rising prevalence of diseases linked to a sedentary lifestyle, an increase in the population of health-conscious consumers, and consumer knowledge of active lives all encouraged people to choose drinks that are both nutritious and sugar-free. The market for energy drinks is also anticipated to expand as a result of an increase in promotional and advertising tactics.On the other hand, increasing consumer awareness of sugar-free beverages tends to propel the global energy drinks market growth during the forecast period. Due to the growing prevalence of diabetes, consumers are becoming more aware of the importance of a balanced diet and an active lifestyle. Due to growing health concerns and intensified efforts to stop the growth of lifestyle illnesses, consumers are adopting low-calorie, low-sugar, or sugar-free dietary patterns in foods and beverages. Customers prefer stevia and other natural sweeteners in their beverages. Companies like Coca-Cola and PepsiCo Inc. have made commitments to reduce sugar in their products and do away with artificial additives. Furthermore, new products were created by beverage manufacturers in response to changing consumer preferences for sugar-free or low-sugar beverages.

Energy Drinks Market Restraints:

Consumers are becoming increasingly concerned about the possibility of ingredients including prohibited colors and additives, medication residues, industrial chemicals, unreported allergies, and heavy metals. The negative health impacts brought on by consuming these residues are probably preventing the market for energy drinks from expanding.

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Recent Developments in the Global Energy Drinks Market

Anheuser-Busch Companies LLC introduced energy drinks in India in January 2022 as the category is predominantly driven by millennials and wealthy consumers in the nation's major urban centres.

Global Energy Drinks Market Segmentation

By Type:

• Alcoholic

• Nonalcoholic

Due to the fact that energy drinks increase energy by enhancing physical and mental performance, the nonalcoholic sector held the largest market share in 2020, accounting for 53.9% of the total. Additionally, the inclusion of caffeine in non-alcoholic energy drinks helps the user be more alert, remember things better, and feel better. In 2020, this sector attracted the largest share. Additionally, this market segment is anticipated to expand significantly over the course of the projection period. This is due to the nonalcoholic energy drink segment's transformation over the previous few years from a small product category to one of the fastest-growing product categories in the overall energy drink market. During the forecast period, it is anticipated that a rise in teen popularity and a rise in health consciousness will favor the growth of the non-alcoholic energy drink segment.

By End User:

• Kids

• Adults

• Teenagers

Due to an increase in energy drink consumption by working adults to maintain a healthy lifestyle, the adult category gained the largest market share of roughly 46.1% in 2020. Due to the rise in athletes' awareness of diet and calorie intake, this market is predicted to expand at the highest CAGR of 8.5% during the forecast period.

By Packaging:

• Cans

• Bottles

With a revenue share of over 50% in 2021, the category for cans is predicted to keep leading during 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 over the projected period.

Energy Drinks Market Regional Analysis

• Europe

• APAC

•  MEA

• North America

• Latin America

In 2021, North America had the highest revenue share of over 30%. The rise in disposable income, the introduction of various indigenous brands, and the rise in marketing and promotional efforts for product growth are further factors contributing to the region's expanding product consumption. Due to shifting demographics, customer preferences, and drinking behaviors, North Americans consume more energy drinks than any other geographic market in the globe.

From 2022 to 2027, the Asia Pacific is probably going to be the region with the quickest rate of growth. Due to customer readiness to try new flavours and the high demand from immigrants living in the country who show interest in a variety of beverages, the market is anticipated to experience significant growth in the economies of China, India, and Japan. The demand for products in the region has been fueled by product launches there that aim to target and appeal to a wide range of consumers.

Energy Drinks Market Key Players

1. Red Bull

2. Taisho Pharmaceutical Co. Ltd.

3. PepsiCo. Inc.

4. Monster Energy

5. Lucozade

6. The Coco-Cola Company

7. Amway

8. AriZona Beverages USA

9. Living Essentials LLC

10. Xyience Energy