Increasing Health Concerns and Rising Popularity of Energy Drinks to Drive the Global Energy Drinks Market

Energy drinks are gaining huge popularity among all the age groups due to the health benefits associated with them. There is a huge percentage of people consuming energy drink over a carbonated drinks from past couple of years. The growth of the energy drinks market is primarily driven by growing awareness about health in young age group. Depending on the type of juices and their benefits, demand for the market of energy drinks is likely to grow in the coming years. Energy drinks market face stiff competition from packaged juice, malted health drinks, and aerated beverages.

Which are the key drivers and restraints influencing the growth of the global energy drinks market?

Raising health concerns and increasing popularity of energy drinks are anticipated to boost the market for energy drinks. In addition, significant increase in number of sports and athlete persons are likely to support the growth in this market. Sugar free energy drinks are gaining high popularity owing to increase in number of cases of diabetics and other sugar related diseases. Energy drinks have formed an integral part of parties, celebrations, and social gatherings, resulting in rapid growth of the market across the globe. Packaging of energy drinks also plays a crucial role in the market due to which many manufacturers are coming up with attractive packaging for energy drinks.

On the other hand, certain energy drinks contain ingredients that are harmful for the health of children, limiting the growth of energy drinks market. Furthermore, energy drinks containing alcohol cause side effects on health thus expected to witness sluggish growth in the coming years. This in turn likely to hamper the growth of market size for energy drinks market.

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Which are the leading segments of the global energy drinks market?

Geographically, the global energy drinks market can be fragmented into different regions such as Asia Pacific, North America, Latin America, the Middle East and Africa, and Europe. North America is the leading region in the energy drinks market and is expected to dominate the market in the coming years, owing to factors such as rising health awareness and changing lifestyle. Developing countries from Asia Pacific regions are likely to increase their sales on account of dynamic economies and growing young consumer base.

However, the Middle East and Africa is about to witness low growth rate due to lack of product awareness and low disposable income. Increased marketing efforts from leading market players and growing consumer adoption are likely to provide steady growth for market in the Europe.

Which are the key players leading the global market for energy drinks?

Competitive analysis of individual regional segment brings an overview of current standing and market share of the key players. Some of the prominent players present in the market include Red Bull GmbH, Hansen Natural Corp., The Coca-Cola Company, and PepsiCo. Market participants are continuously coming up with new energy drinks variant such as natural energy drink and sugar free energy drink to cement their position in the global energy drinks market.

Ichitan Group on 23^rd March 2017, announced the launch of T247 energy drink for younger generation across the globe. Ichitan’s green-teas drink is the leading product and it aims come up with two or three new products every year.

Energy Drinks Market: Sugar-Free Energy Drinks to Emerge as Most Prominent Trend

A new research study by Transparency market Research (TMR) states that the global market for energy drinks has been registering a tremendous rise over the past few years. The research report, titled “Energy Drinks Market - Global Industry Size, Share, Trends, Analysis And Forecasts 2016-2024,” presents an unbiased assessment of this market on the basis of its historical performance, current status, and future prospects.

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According to the research report, the increased demand for improved functionality in drinks is likely to influence the global market for energy drinks significantly during the forecast period. The increasing awareness among consumers regarding health and fitness as well as the health benefits offered by energy drinks are also anticipated to boost the sales of these drinks across the world in the near future, reports the market study.

Over the forthcoming years, sugar-free energy drinks will surface as the most prominent trend in the global energy drinks market. With the increasing number of consumers cutting down on sugar consumption, triggered by the growing prevalence of diabetes, a lucrative opportunity is developing in the sugar-free energy drinks segment for market players. The obesity pandemic is projected to boost the low-calorie energy drinks considerably in the years to come, finds the research report.

Predominantly, Latin America, Europe, the Middle East and Africa, North America, and Asia Pacific are considered as the key geographical segments of the global market energy drinks. Among these, Asia Pacific and Latin America are likely to witness a substantial rise in the sales of energy drinks in the years to come, thanks to the presence of a young consumer base and the dynamic economy of countries in these regions.

Mature regional markets, including North America and Western Europe, are also expected to provide lucrative growth opportunities to energy drink producers on account of the increasing preference of consumers for healthier alternatives over sodas, notes the market study.

The research report also analyzes the competitive landscape of the global energy drinks market by reviewing the profiles of the prominent players operating in this market. Analysts have studied the historical performance and studied the future prospects of each market players thoroughly in order to define the current market hierarchy. The leading producers of energy drinks are focusing on product innovation in terms of flavors and nutritional value in a bid to withstand this highly competitive environment and improve their visibility.

Some of the leading companies producing energy drinks are PepsiCo, Red Bull GmbH, Hansen Natural Corp., and The Coca-Cola Co., states the market study.

Global Market Research Report Of Energy Drinks Market between 2016-2024

Global Energy Drinks Market: Overview

Sports and energy drinks have transitioned from being a niche product to one of the fastest growing product categories in the global soft drinks market. This change has primarily been brought about by a growingly evident consumer focus on health and fitness. Moreover, as the consumption of aerated drinks heads for a visible decline in many important markets of the world, the time is ripe for energy drinks to make a mark in terms of both volume sales and revenue.

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With energy drinks no longer being the preserve of athletes and sportspersons, the coming years will bring new consumers into the folds of the global energy drinks market. This factor will play a key role in enabling the global energy drinks market rise at a double-digit CAGR between 2016 and 2024, analysts opine.

The report maintains a sharp focus on the changing trends within the energy drinks market, with a special emphasis on spotting emergent product categories. A region-wise outlook helps companies spot opportunities that will prove profitable to companies, both local and international. A detailed analysis of the competitive shares of the leading market players is yet another highlight of the report. The key criteria for segmentation are: Product type, end users, distribution channels, and geography.

Global Energy Drinks Market: Trends and Opportunities

With consumers across all demographic categories increasingly being drawn toward products that offer health benefits, clever marketing and branding will remain crucial to the success of energy drinks brands worldwide. Moreover, with consumers consciously cutting down on the consumption of sugar-sweetened drinks and the number of diabetics rising worldwide, a massive opportunity is shaping up in the sugar-free energy drinks market, the report finds. At the same time, the obesity pandemic will give a fillip to low-calorie energy drinks.

Packaging will be a defining trend in the energy drinks market, becoming nearly as important as improved product formulation. As more energy drinks bustle for space on retail shelves, packaging will be a definite purchase influencer for consumers. While the market carries a positive long-term growth outlook, companies need to reassess their product formulas to overcome negative publicity related to potentially harmful ingredients in their products.

Global Energy Drinks Market: Region-wise Insight

The global energy drinks market is broadly segmented on the basis of geography into North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. The dynamic economies of countries in Asia Pacific and Latin America, coupled with a young consumer base, will drive sales of energy drinks in these regions.

However, companies are recommended to not entirely shift their focus from mature markets such as those in North America and Western Europe, where consumers are ditching sodas for healthier alternatives. Overall, the demand for greater functionality in drinks will be a defining demand driver in the energy drinks market.

Global Energy Drinks Market: Key Players

The leading companies in the global energy drinks market are: PepsiCo, Hansen Natural Corp., Red Bull GmbH, and The Coca-Cola Company. 

Increasing Consumption of Energy Drinks in Place of Carbonated Drinks to Boost Energy Drinks Market

A new market research report by Transparency Market Research, titled “Energy Drinks Market - Global Industry Size, Share, Trends, Analysis And Forecasts 2012 – 2018,” provides a deep understanding of the market for energy drinks. The study evaluates the market’s growth potential along with its chief areas of target. The report comprises data on the market’s size and trends and opportunities within the global energy drinks market. The current product developments as well as the expected advancements that may take place within the market have also been highlighted in this research study. The competitive landscape section of the report includes the chief market players dominant in the market, along with presenting their top strategies, product advancements, and market shares. The report evaluates the market on the basis of end user, trend, and distribution channel. Thus, the report is an extensive study providing answers to marketing managers, distributors, and suppliers within the energy drinks market.

As per the report, the increasing health benefits of energy drinks and the increasing health concerns amongst people are the prime factors fuelling the market for energy drinks in the forecast horizon. In addition, the rise in the number of athletes will also raise the demand for energy drinks. Furthermore, energy drinks are being consumed as a substitute to carbonated drinks owing to them being healthy substitutes to sugary carbonated drinks, thus augmenting the market’s growth. On the other hand, as per the report, the hazardous impact of certain energy drinks on children may impede the growth of the market in forthcoming years.

The sugar-free segment is poised to hold the largest share in the coming years for both the established as well as the upcoming companies in the market for energy drinks. Sugar-free and low-calorie drinks are particularly demanded by female consumers. In addition, the increasing proliferation of organic drinks within the energy drinks market will also impact the market positively in the coming years, as per this study.

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In terms of geography, the report segments the market into Asia Pacific, North America, Europe, and Rest of the World (RoW). Amongst these, in 2012, North America led the market with a share of over 35% in the market for energy drinks. On the other hand, the region of Asia Pacific held the second largest share of 30% in the market in the same year.

As mentioned in the report, the chief players operating in the global energy drinks market are Hansen Natural Corp., PepsiCo., Red Bull GmbH, Rockstar Inc., and The Coca - Cola Company, among others.

Certain Ingredients in Energy Drinks under Radar of Healthcare Authorities, High Popularity to Help Market Expand at 10.0% CAGR

A new market research report by Transparency Market Research, titled “Energy Drinks Market - Global Industry Size, Share, Trends, Analysis And Forecasts 2012 - 2018”, presents a detailed overview of the global market for energy drinks. Analyzing the market for developmental trends of the past, the report also presents a forecast of the market’s state over the years between 2012 and 2018.

The report projects that banking on the rising popularity of a variety of energy drinks across different age groups on a global front, the market for energy drinks is poised to expand at a healthy 10.0% CAGR over the report’s forecast period.

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The report presents a 360-degree overview of the global energy drinks market, analyzing the current state and future growth prospects of all its crucial elements on a global as well as a regional level.

Energy drinks, as the name indicates, refer to beverages formulated with ingredients that help replenish energy levels. Often marketed as healthy alternatives to sugar-saturated carbonated drinks, energy drinks have come under the radar of health agencies in the past few years owing to the presence of certain ingredients that can potentially harm children.

The American Academy of Pediatrics states that energy drinks that are high in caffeine and stimulants should have no place in the diet of children and adolescents. In light of these concerns, many regulatory bodies have informed energy drinks companies to cease advertising efforts aimed at these age groups. These factors are hindering the overall development of the market to a certain extent in the past few years and will continue to have a negative effect on the market to a certain extent over the report’s forecast period as well.

However, geriatric people are attracted to products that promise physical and mental activeness and top physical shape. This desire is the chief factor driving the market for energy drinks across the globe. The segment of sugar-free energy drinks also holds immense growth potential, as such energy drinks are attractive to the health-conscious population as well as female consumers.

The report segments the global energy drinks market on the basis of three criteria: product type, end use, and geography. On the basis of product type, the market is segmented into two broad categories: alcoholic energy drinks and non-alcoholic energy drinks. On the basis of end user, the market is segmented into adults, kids and teenagers, and geriatrics. Geography-wise, the market is segmented into North America, Asia Pacific, Europe, and Rest of the World (RoW).

Of the regional markets studied in the report, the segment of North America led the global market, accounting for a 35% share in 2012. Asia Pacific was a close second with a 30% share in the market in the same year.

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Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.

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Energy Drinks Market - Global Industry Size, Share, Trends, Analysis And Forecasts 2012 – 2018

For many, sports drinks and energy drinks are somewhat synonymous. The truth is that the two couldn’t be more different. Sports drinks are beverages developed specifically to be used while exercising or to enhance the performance of an athlete or sportsperson. Energy drinks, on the other hand, is a rather amorphous category that combines lifestyle beverages and functional beverages. While they do provide flavor and refreshment like any other soft drink, they also contain a host of functional ingredients (such as caffeine) that provide a form of energy and wakefulness to the consumer. The market for energy drinks has gained much momentum in recent years owing to the benefits they offer, and according to recent report published by Transparency Market Research the global energy drinks market is projected to register a growth of more than 10% by the end of 2016.

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The global energy drinks market comprises four main regions: North America, Europe, Asia Pacific, and Rest of the World. Let’s take a look at the two dominant regional energy drinks markets and their performance over the years.

North America leads the pack with 35% of the market share

North America has been dominating the global energy drinks market and consists of two primary regions: Canada and the U.S.

Manufacturers of energy drinks in the U.S. are projected to witness significant growth in the coming years, with sales surging in terms of off-trade value and volume. Of the major players in the energy drinks market, The Gatorade Co Ltd holds a commanding lead in sales of energy drinks in the U.S. Gatorade, being the first product of its kind, has managed to maintain its lead even with the introduction of numerous new and innovative products in the market. The company will continue to enjoy a strong hold in terms of consumer loyalty, appeal, and preference in the years to come. A challenge that the U.S. market for energy drinks faces is concerns associated with the safety and health of energy drinks. Health professionals and media have been linking the consumption of energy drinks and deaths in 2013, and the purpose and necessity of these drinks is being questioned across the industry. Moreover, with new beverage categories being introduced in the market and energy drinks being on the verge of product saturation, the energy drinks market in the U.S. is expected to witness a slump by the end of the forecast period.

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Asia Pacific a close second with 30% of the energy drinks market share

The Asia Pacific energy drinks market, though an emerging regional segment, has been experiencing a surge in popularity in countries such as China and India. Industry experts and analysts claim that this regional market represents massive potential in terms of attracting more players as well as consumers.

The China market for energy drinks is largely characterized by the launch of new kinds of products. Players such as Hangzhou Wahaha Group and Fujian Dali Food Co Ltd have been grabbing the attention of consumers and spurred the growth of the energy drinks industry in China. Red Bull Vitamin Drink Co Ltd has been dominating the regional market, accounting for nearly 40% of the share in 2013. With the help of strong promotional, advertizing, and marketing campaigns, the company has managed to capture the interest of consumers to a great extent. The energy drinks market in China is set to get more competitive by 2018 with products such as Pocari Sweat, Red Bull, Jianlibao, and Gatorade cultivating their brands in the industry.

The rise of the urban class in India has been the most attractive factor enticing the energy drinks market. Consumers looking for instant energy solutions have enabled new manufacturers such as Monster Energy Drink, JK Ansell Ltd, and K.G. Functional Beverages Ltd to tap into the Indian market. The popularity of sports events in the country is an opportunity for companies to promote their brand and create appeals and awareness among potential customers. Red Bull GmbH led the energy drinks market in India in 2013 and is estimated to continue to enjoy its first mover advantage.

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About Us

Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.

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Mr. Atil Chaudhari

90 State Street, Suite 700

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