Energy Drinks Market

Global Energy Drinks Market Size (2024 to 2029)

The size of the global energy drinks market is estimated to grow at a CAGR of 7.5% from 2024 to 2029 and be worth USD 112.23 billion by 2029 from USD 78.17 billion in 2024. North America is the most promising regional segment for energy drinks worldwide and accounted for 30.8% of the worldwide energy drinks market share in 2023. Red Bull and Monster are well-known brands for energy drinks and hold the majority of the energy drinks market share worldwide.

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. 

Current Scenario of the Global Energy Drinks Market

The demand and consumption of energy drinks are on the rise worldwide, and the global market for energy drinks is expected to witness promising growth during the forecast period. Young adults, athletes and working professionals have been increasingly consuming the energy drinks for a quicker energy boost to cope up with the demanding work schedules and long working hours. In addition to that, the consumption of energy drinks has also seen a spike among gym-goers. These consumption trends are anticipated to fuel further in the coming years and propel global market growth.

MARKET DRIVERS

The rising popularity of energy drinks that offer immediate energy along with mental and physical stimulation is propelling the global energy drinks market growth.

Taurine is an important component in most energy drinks and is necessary for the growth of skeletal muscle and the cardiovascular system. This awareness among the consumers is growing gradually and energy drinks that contain taurine have been experiencing promising demand in the global market. In addition, rising consumer lifestyle changes, growing health consciousness and increased awareness of health and wellness products are anticipated to drive the global energy drinks market.

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.

The rising consumer awareness of sugar-free beverages tends to propel the global energy drinks market growth.

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 launched by beverage manufacturers in response to changing consumer preferences for sugar-free or low-sugar beverages.

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.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Energy Drinks Market Analysis By Product

The non-alcoholic segment stood as the dominating segment and held 53.9% of the worldwide energy drinks market share in 2023. Non-alcoholic energy drinks increase energy by enhancing physical and mental performance. Additionally, the inclusion of caffeine in non-alcoholic energy drinks helps the user be more alert, remember things better and feel better. The non-alcoholic segment is predicted to showcase the fastest CAGR during the forecast period in the global market due to the non-alcoholic 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.

The alcoholic segment is expected to grow at a CAGR of 6.04% during the forecast period. The popularity of alcoholic energy drinks has been growing gradually over the last few years overs worldwide. Popular brands for energy drinks, such as Red Bull, Monster Energy, and Rockstar Energy, have launched alcoholic energy drinks to capture the rising demand for these products.

Global Energy Drinks Market Analysis By Type

The cans segment dominated the market and occupied a share of 59.7% of the worldwide energy drinks market share in 2023. Because consumers' tastes and options have evolved, they are increasingly choosing these drinks over bottled wine and other alcoholic beverages. Cans are 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 forecast period.

The bottles segment is also a major segment and is predicted to register healthy growth during the forecast period.

Global Energy Drinks Market Analysis By Consumption

The adult segment was the major segment in the global market in 2023 and held 60.9% of the global energy drinks market share. The domination of the adult segment is likely to continue throughout the forecast period owing to the increase in energy drink consumption by working adults to maintain a healthy lifestyle. The rise in athletes' awareness of diet and calorie intake is further boosting the expansion of the adult segment in the global market.

The teenagers segment is expected to grow at a promising CAGR during the forecast period and account for a substantial share of the global energy drinks market share. Teenagers are expected to be the significant consumer base for energy drinks in the coming years. The market participants have been particularly targeting teenagers by employing marketing strategies such as social media influencers and sponsorships to promote their energy drink products. The consumption of energy drinks among teenagers is increasing significantly and is contributing to the growth of the teenagers segment in the global market.

REGIONAL ANALYSIS

In 2023, North America outranked all the regions and stood as the most dominating regional segment in the global market, accounting for 30.8% of the worldwide market share. The rise in disposable income, the introduction of various indigenous brands, and the rise in marketing and promotional efforts for product growth are 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. The U.S. is the major market for energy drinks in North America and captured approximately 80% of the share of the North American market in 2023. The growth of the U.S. energy drinks market is majorly attributed to the rising demand for convenience beverages, especially among urban populations with hectic schedules and the strong presence of key market players. The rise in the popularity and consumption of alcoholic and non-alcoholic energy drinks among college students and young working professionals in the U.S. is further propelling the U.S. market growth.

During the forecast period, the Asia Pacific is expected to be the fastest-growing regional segment worldwide. Due to customer readiness to try new flavors 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.

Europe is a noteworthy regional segment for energy drinks worldwide and occupied 24.2% of the worldwide market share in 2023. The growth of the European market is attributed to the increasing demand for functional beverages and the growing recognition of energy drinks as a healthy beverage among consumers across Europe. In Europe, people have been showing interest in consumer energy drinks that are natural and organic. Considering this trend, the regional market participants have been focusing on innovation to introduce products that address and cater to the preferences of various types of consumers. The UK, Germany, and France are the key markets for energy drinks in Europe and collectively hold around 65% of the sales for energy drinks in Europe.

Latin America and MEA regions accounted for a moderate share of the worldwide market in 2023. However, these regions are anticipated to grow considerably during the forecast period owing to the growing awareness about energy drinks, increasing consumption of energy drinks among the young population and changing consumer preferences.

KEY PLAYERS IN THE GLOBAL ENERGY DRINKS MARKET

Companies playing a major role in the global energy drinks market include Red Bull, Taisho Pharmaceutical Co. Ltd., PepsiCo. Inc., Monster Energy, Lucozade, The Coco-Cola Company, Amway, AriZona Beverages USA, Living Essentials LLC and Xyience Energy.

RECENT HAPPENINGS IN THE 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 centers.

DETAILED SEGMENTATION OF THE GLOBAL ENERGY DRINKS MARKET INCLUDED IN THIS REPORT

This research report on the global energy drinks market has been segmented and sub-segmented based on product, type, consumption, distribution channel and region.

By Type

• Alcoholic
• Non-alcoholic

By Packaging

• Cans
• Bottles

By End User

• Kids
• Adults
• Teenagers

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa