Enjoy complimentary customisation on priority with our Enterprise License!
The Latin America Energy Drinks Market size is projected to increase by USD 5,904.04 million and the market size is estimated to grow at a CAGR of 14.26% between 2022 and 2027. The strengthening distribution networks and collaborations is driving the Latin America Energy Drinks market growth. Many major and regional vendors have either entered into distribution deals with regional distributors or set up their own distribution centers with an aim to tap into the considerable market potential of energy drinks in Latin America. Additionally, vendors are emphasizing collaborating with each other to market their products with greater efficiency. One of the key reasons for the growth of the energy drinks market in Latin America is the rapid infrastructure development in the region has given traction to the growth of organized retailers, such as cash-and-carry retailers, discount stores, supermarkets, hypermarkets, and convenience stores which has proven to be effective distribution channels for vendors operating in the energy drinks market in the region but also provided consumers with easy accessibility to and availability of such products. Hence, such factors are expected to drive the energy drinks market in Latin America during the forecast period.
To get additional information about the market, Request Free Sample
The rising adoption of natural ingredients in energy drinks is expected to have a positive impact on the Latin America Energy Drinks Market in the coming years. There is a shift in consumer preferences pertaining to the consumption of energy drinks in Latin America in terms of the quality of the ingredients used due to the increasing health consciousness among consumers. Consumers are seeking energy drinks with low caffeine content and manufactured from natural and high-quality ingredients, especially in countries such as Brazil, Mexico, Chile, and Argentina.Additionally, several vendors, such as Coca-Cola, Red Bull, AJE, Grupo Petropolis, and Monster Energy, have been emphasizing more on natural ingredients in their energy drinks to meet the shifting consumer demand. For instance, natural ingredients such as organic Brazilian guarana, ginkgo biloba, organic ginseng, organic elderberry, natural lemon juice, natural mineral water, organic extract of catuaba, organic extract of yerba mate, organic pomegranate juice, and organic and fair-trade sugar are increasingly being used by vendors to prepare energy drinks. Hence, such factors are expected to drive the energy drink market growth in Latin America during the forecast period.
Increasing demand for substitute products will be a major challenge impeding the Latin America Energy Drinks Market during the forecast period. Some of the main alternative substitute products for energy drinks include Green tea, flavored and herbal teas, sports drinks, natural soft drinks, fresh juices, RTD protein shakes, coffee, yerba mate, ginger root tea, bottled natural mineral water, and smoothies which can pose as a significant threat to the market.Factors such as rising demand for coffee and green tea, growing demand for and popularity of the aforementioned substitute products, and increasing number of product launches in the energy drinks alternatives category in Latin America can negatively impact the market growth. For instance, Coffee is extremely popular in Brazil, where it enjoys a household penetration rate of 95%-96%. Hence, such factors are expected to hinder the energy drinks market growth in Latin America during the forecast period.
The standard energy drinks segment will account for a significant share of market growth during the forecast period. There is a growing popularity for standard energy drinks among customers who value quick energy boosts, improved focus, or increased alertness. Factors such as longer working hours, busy lifestyles, and the desire for increased productivity are driving the growth of the standard energy drinks segment. Some of the key target consumers of standard energy drinks include young adults, students, and professionals seeking an energy boost. Several prominent energy drink brands, such as Red Bull, Monster Energy, and Rockstar, have established a strong presence in the market. Hence, such factors are expected to drive the growth of this segment which in turn will drive the growth of the energy drinks market growth in Latin America during the forecast period.
The increased consumer interest in fitness and health will significantly drive the demand for energy shots during the forecast period. Energy shots mainly include small, concentrated beverages that contain ingredients such as caffeine, vitamins, and other stimulants to provide a quick boost of energy. Some of the key advantages of energy shots are that they are compact and easy to consume on the go and their small size makes them convenient for individuals who want a quick energy boost without the volume of a full-sized energy drink or coffee. As a result, there is an increasing consumer preference for energy shots over the years. Hence such factors are expected to drive the growth of this segment which in turn will drive the growth of the energy drinks market growth in Latin America during the forecast period.
The market share growth by the sparkling energy drinks segment will be significant during the forecast period. The category of energy drinks prepared from sparkling mineral water obtained from mineral springs, whose effervescence is due to the presence of natural gases, are mainly referred to as sparkling energy drinks.
The sparkling energy drinks segment was valued at USD 4,571.71 million in 2017.
For a detailed summary of the market segments Request for Sample Report
The method of preparation of sparkling energy drinks involves the addition of carbon dioxide artificially in the product to produce extra fizz and bubbles as well as it can also be manufactured from seltzer water, which is an artificially created version of sparkling mineral water. As sparkling water contains health-promoting minerals and carbon dioxide, it is widely preferred by consumers in Latin America. Factors such as rising product innovation in the sparkling energy drinks segment in Latin America with the availability of a wide variety of flavors and increasing consumer expenditure and strengthening distribution networks in countries such as Brazil, Mexico, Chile, Ecuador, and Peru are expected to drive the growth of this segment which in turn will drive the growth of the energy drinks market growth in Latin America during the forecast period.
The rising trend of a healthy diet and health awareness among consumers is expected to drive the still energy drink segment during the forecast period. Still, energy drinks are primarily manufactured from still water, which is not fizzy in nature. Some of the key vendors of still energy drinks in Latin America include Coca-Cola and Monster Energy. Despite the health benefits, the consumption of still energy drinks is low as these drinks do not contain the fizz that sparks the senses of the consumers, but it is slowly growing due to the factors such as rising health awareness among consumers as they are increasingly seeking non-carbonated options in the energy drinks category. Hence, such factors are expected to drive the growth of this segment which, in turn, will drive the growth of the energy drinks market growth in Latin America during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The energy drinks market in Latin America report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The energy drinks market in Latin America report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Energy Drinks Market In Latin America Scope |
|
Report Coverage |
Details |
Page number |
142 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.26% |
Market growth 2023-2027 |
USD 5904.04 million |
Market structure |
USD Fragmented |
YoY growth 2022-2023(%) |
10.0 |
Regional analysis |
Latin America |
Performing market contribution |
Latin America at 100% |
Key countries |
Brazil, Mexico, Peru, and Rest of Latin America |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alimentos Maravilla SA, Anheuser Busch InBev SA NV, Bebidas Chiamulera, cbc, Cervejaria Petropolis SA, Electrolit USA, Florida Ice and Farm Company S.A., Globalbev Bebidas e Alimentos SA, Grupo Embotellador ATIC SA, Hell Energy Hungary Kft., MAX ENERGY DRINK, Monster Energy Co., Nova Organic Energy BV, Organique, PepsiCo Inc., Postobon SA, Red Bull GmbH, The Coca Cola Co., Wildcat Energy Drink Ltd., and XITE ENERGY LTD. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
BUY NOW Full Report and Discover more
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.