The energy drinks market in Europe is growing rapidly and is predicted to showcase a CAGR of 3.3% from 2023 to 2028. The European energy drinks market is expected to be worth USD 18.63 billion by 2028 from USD 15.84 billion in 2023.
The growing trend towards healthy drinks among people across Europe is driving the growth of the European energy drinks market. Energy drinks are mood setters as most of them contain caffeine. Caffeine gives instant energy and refreshment to the mood and body. Many people have become health-conscious post-pandemic, and consumers are seeking experimental products with healthier and safer ingredients. Working people are highly concerned with stress and headaches due to hectic lifestyles. Energy drinks are the fastest-growing beverage in the European Food and beverage industry as European people seek healthy beverages. The demand for energy drinks is increasing among all age groups, primarily teenagers and adults. The increasing consumer knowledge of chronic diseases and healthy lifestyles and the prevalence of diseases regarding the sedentary lifestyle are enhancing consumers' choice of healthy and sugar-free beverages. Energy drinks target brain functioning by improving concentration levels and bringing mental alertness. Energy drinks contain B vitamins, taurine, ginseng, and L-carnitine, which reduce stress and tiredness better. Taurine shows better results on the cardiovascular system, and the awareness of these health benefits among people is propelling the growth in market value.
The increasing investments in R&D by the leading players are boosting the growth of the European energy drinks market. Most key market players invest in the research and development sector to bring innovative and new products into the market to gain consumer attention. The key players are focusing on advertising their products consumer-oriented. The leading players mainly advertise their products with sportspeople to grab consumers' attention. The gym and sports people prefer energy drinks to increase their energy and reduce their tiredness. The strategic initiatives by the market players are increasing the demand for energy drinks across the European region and contributing to the regional market growth. Large energy drink manufacturers are investing a lot of money in advertising and increasing the popularity of their brands and goods.
The growing influence of endorsements and social media marketing is expected to create lucrative opportunities for the growth of the European energy drinks market. The increasing importance of social media among people in online retailing makes manufacturers focus on advertising, marketing, and endorsement across various distribution channels. The companies are collaborating with sports clubs and tournaments to reach consumers widely by strengthening their social media reach.
Heavy consumption of caffeine has many side effects, such as insomnia, dizziness, headaches, and anxiety, which hamper the energy drinks market's expansion. Caffeine also results in dependency, where regular consumption increases the daily dose for the same effect. The limited flavors cause consumers to lose interest in specific brands. The presence of specific functional ingredients alters the market's growth due to allergies and other reasons. Strict government regulations for product approval will impede the growth of the European energy drinks market. Competition from other low-cost alternatives is expected to challenge the market expansion. The low cost of alcoholic beverages compared to caffeine-induced energy drinks is expected to hamper the market growth.
Impact of COVID-19 on the European energy drinks market:
COVID-19 had a mixed impact on the European energy drinks market due to hurdles in the supply chain and raw material supply to the manufacturers. The first half of the pandemic impacted the supply chain and decreased sales; the second half balanced the market revenue with a drastic increase in sales. People's change in consumption habits due to the pandemic positively impacted the market expansion. Consumers demanded healthy ingredients in energy drinks, which made manufacturers focus on new launches.
This research report on the European energy drinks market has been segmented and sub-segmented into the following categories:
Europe Energy Drinks Market – By Type:
Europe Energy Drinks Market – By Ingredient Type:
Europe Energy Drinks Market – By Packaging:
Europe Energy Drinks Market – By Country:
Europe dominated the global energy drinks market in second position due to advancements in the food and beverage industry. The UK held the largest share of the European energy drinks market and is projected to maintain the leading position over the forecast period. This is due to the increased casual drinking habits and the rising preference of gym people and athletes for energy drinks to gain instant energy by reducing tiredness. The presence of key market players in the country investing in innovations and new product launches is estimated to create possibilities for market expansion. According to the British Soft Drink Association (BSDA), the UK witnessed energy drink consumption of 906 million in 2021.
Germany is projected to have significant growth in the European energy drinks market revenue due to the growing health awareness among the people to stay healthy and maintain a balanced diet. People's busy lifestyles do not allow them to care for themselves, so they seek advantageous ingredients in their food. The rising prevalence of diabetes and obesity is allowing them to prefer sugar-free drinks, which is promoting the growth of the market. Emerging countries such as France, Italy, and Spain are estimated to have decent growth rates in the forecast period due to increasing endorsements and manufacturers' social media advertisements. The increasing demand for energy-giving food products is gaining traction among the European population.
KEY MARKET PLAYERS:
Companies playing a major role in the European energy drinks market are Red Bull, Monster Beverage Corporation, Rockstar Inc., Coca-Cola, PepsiCo., Arizona Beverage Company, National Beverage Corp., Dr.Pepper Snapple Group, Living Essentials and Cloud 9.
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