North America Energy Drinks Market Research Report – Segmented By Type, Ingredient Type, Packaging & Country (The United States, Canada and Reset of North America) - Industry Analysis on Size, Share, Trends, COVID-19 Impact & Growth Forecast from 2024 to 2029

Updated On: January, 2024
ID: 7007
Pages: 145

North America Energy Drinks Market Size (2024 To 2029)

The North American energy drinks market is expected to be valued at USD 22.63 billion in 2024 to reach USD 28.50 billion by 2029. and is estimated to be growing at a CAGR of 3.2% from 2024 to 2029

Increasing consumption of healthy beverages among people is driving the energy drinks market in the North American region. The increasing awareness among people regarding health is attracting them towards energy drinks. Energy drinks are taken as dietary supplements for the gym and sports people to regain energy. The consumption of energy drinks is rising due to the health benefits such as instant hydration with essential nutrients to the body, propelling the market growth. The energy drinks are highly preferred by the millennials. The availability of different flavors according to the consumer choice is driving the market value. The increasing demand for clean-labeled products is enhancing the market for energy drinks. The growing adoption of energy drinks by teenagers due to their instant benefits is fuelling the North American market expansion.

The increasing focus of manufacturers on developing highly efficient products to gain the consumer base is augmenting the North American energy drinks market revenue. The presence of essential ingredients such as Taurine, which is greatly beneficial for the cardiovascular system and skeletal system, is gaining interest from people. The presence of caffeine in energy drinks attracts consumers as a large population is habituated to caffeine consumption.

The surging marketing initiatives by the manufacturers and the key market players are expected to propel the market by creating opportunities. The market players are highly focused on developing innovative products to attract consumers. The level of advertising by the market players is high, which attracts people.

The side effects associated with the huge consumption of caffeine are hampering the market growth. The effects of caffeine include hypertension, nausea, anxiety, and others, which increase the risk of patients already having hypertension. Overconsumption of caffeine in teenagers leads to disturbances in the sleep cycles where the consumers are taking huge amounts to get stress relief and gain energy. The presence of other alternatives in the market, such as tea, coffee and alcoholic beverages, is expected to impact the market expansion. The lack of awareness among many people regarding the health benefits and instant hydration of energy drinks is anticipated to pose the foremost challenge for market growth. The impact of raw material shortages and distribution delays may also hamper the regional market growth.

This research report on the North American energy drinks market has been segmented and sub-segmented into the following categories.

North America Energy Drinks Market – By Type:

  • Isotonic
  • Hypotonic
  • Hypertonic

The hypotonic segment dominated the energy drinks market with the largest share in 2022 due to its low concentration of sugars. The hypertonic type drinks had higher concentrations of fluid, sugars, and salt than blood, whereas the isotonic segment is gaining traction from the recent period as it contains similar concentrations of sugars and fluid to blood. The isotonic beverages are preferred by the teenagers and adults.

North America Energy Drinks Market – By Ingredient Type:

  • Water And Additives
  • Sweeteners
  • Flavors
  • Acidulants

The flavors segment held the largest share in the North American energy drinks market revenue in 2022. The various flavors attract the consumer's choice. The manufacturers are focusing on developing innovative flavors to gain the consumer base. The millennials are seeking innovative product flavors, which is accelerating the market growth in the flavor segment.

North America Energy Drinks Market – By Packaging:

  • Bottles
  • Cans

The cans segment dominated the market with the largest share as cans are easier to handle than bottles. The energy drinks in cans are more portable for their on-the-go consumption and availability in various distribution outlets such as supermarkets and convenience stores is greatly boosting the canned energy drinks in the North American region. Bottles are expected to have decent growth in the forecast period due to increased quantity and packaging.

North America Energy Drinks Market – By Region:

  • The United States
  • Canada
  • Rest of North America

North America held the largest share of the global energy drinks market revenue. The U.S. dominated the North American Energy drinks market due to its adoption of urbanization. The consumption of energy drinks has become a symbol of status, which is influencing more on the youth in the urban areas. This is promoting the growth of the energy drinks market. The presence of key market players in the U.S. is enhancing the market growth. The teenagers and young adults who are indulging in sports activities are being influenced by the gluten-free, organic, and clean-labeled energy drinks, which is projected to propel the market expansion. According to health experts, energy drinks are the most popular supplements among teens and working adults in the U.S. due to the adoption of Western culture and to gain refreshment. Most people between 18 and 35 habituated to these drinks was driving the market growth. Caffeine in energy drinks targets brain functioning, improves concentration level, and bring mental alertness. The market was being surged by the benefits of energy drinks. These drinks contain sugars, other sweeteners, B vitamins, taurine, ginseng, L-carnitine, and more, which help reduce stress and tiredness and refresh individuals. Taurine works for cardiovascular system well-being, so people are choosing energy drinks with health benefits. People's awareness of the health benefits was prompting the market demand.

The U.S. completely dominated the market in the North American region. Companies in the U.S. are developing innovative ways to reach the customer's needs and advertising their product in a consumer-oriented manner. They promote their product in sports events and make famous sports icons to advertise their product. The surging strategic initiatives by the key players were increasing the demand in the Energy drinks market.

Canada was the second country in the North American region to hold the dominant market share. The increase in modernization in urban areas was influencing teenagers to become addicted to these drinks, driving the market demand. Manufacturers are launching new products to stand out from the competition and increase market value. In March 2021, PepsiCo launched a new line of Mountain Dew energy drinks with Lebron James endorsement. It was available in six flavors: Pomegranate Blue Burst, Orange Breeze, Strawberry Melon Spark, Tropical Sunrise, Berry Blitz, and Peach Mango Dawn. The market players are focusing on developing innovative ways to reach the consumer choice and advertising the product in a wide range to gain the consumer base. The continuous launch of new products into the market by the manufacturers to survive in the market competition is driving the market value of energy drinks.

Mexico is experiencing market growth from the recent period and is estimated to have decent growth in the forecast period. As the energy drinks are meeting the consumer’s specific requirements the market is gaining higher adoption among the consumers.

KEY MARKET PLAYERS:

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 are some of the major players in the North American energy drinks market.

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Frequently Asked Questions

1.What Are the Potential Benefits of Energy Drinks?

Energy drinks are often consumed to combat fatigue, increase alertness, enhance cognitive function, and improve physical performance. The caffeine and other stimulants found in energy drinks can provide a temporary energy boost and help individuals stay awake and focused.

2.Are There Any Health Risks Associated with Energy Drinks?

While moderate consumption of energy drinks is generally considered safe for most adults, excessive consumption or consumption by certain populations (such as children, pregnant women, individuals with heart conditions, or those sensitive to caffeine) may pose health risks. These risks may include caffeine-related side effects like increased heart rate, anxiety, insomnia, and potential interactions with medications or other substances.

3.What Are Some Popular Brands of Energy Drinks in North America?

Popular brands of energy drinks in North America include Red Bull, Monster Energy, Rockstar, 5-hour Energy, Bang Energy, and NOS Energy Drink, among others. These brands offer a variety of flavors, formulations, and packaging sizes to appeal to different consumer preferences.

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