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The global energy drinks market is projected to reach a value of over USD 125.40 billion in 2027, at a CAGR of 8% between 2022 and 2027. Energy drinks are beverages that contain high levels of caffeine, taurine, and other stimulating ingredients. The rise in the consumption of energy drinks is popular among young adults and athletes seeking increased energy and focus.
|Market Size (2017) Historic Year
|USD 67.02 billion
|Market Size (2027) - Forecasted Year
|USD 125.40 billion
|Historic Opportunity (2017-2021)
|USD 12.50 billion
|Forecasted Opportunity (2023-2027)
|USD 40.04 billion
|Market Opportunity Transformation Growth
|Market Opportunity Capitalization
|USD 52.54 billion
Key players include Red Bull, Monster Beverage Corporation, and Rockstar Inc. Concerns regarding the potential health risks associated with excessive consumption of energy drinks have led to increased regulations on labeling and marketing.
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The market is a dynamic landscape, encompassing various factors influencing its size and growth trends. With a diverse product type, including supplements, these beverages appeal to a wide-ranging audience. Health consciousness, a key driver, has led to innovative formulations, addressing concerns about sugar content and ingredient quality. In Denmark and Hungary, heightened health awareness influences consumer choices, creating market opportunities for manufacturers. Availability at different prices accommodates diverse incomes, contributing to market growth. This introduction sets the stage for exploring essential facts, executive summaries, and the broader dynamics shaping the industry's size and evolving trends.
A hectic lifestyle and a need for instant energy are the key drivers for the growth of the market. Changing lifestyles and working methods, globalization, and many other aspects have made consumers' lives busier. They have more work than time to complete their tasks. So, to survive in such a competitive environment, they have to put in more effort. Since these energy drinks are rich in energizing ingredients like ginseng, caffeine, and others, they keep the mind and body sharp. The caffeine found in drinks boosts overall productivity by increasing activity and alertness. Most consumers between the ages of 18 and 34 regularly consume energy drinks. Red Bull, the leading brand, holds approximately 32% of the market share. The caffeine content in most drinks ranges from 80 to 150 milligrams per serving. It hold a major position in the beverage market. Thus, factors such as hectic style and immediate demand will propel the growth of the global market during the forecast period.
The market witnesses diverse consumer demographics and behaviour, with adults being prominent consumers. Fueled by ingredients like taurine, these beverages target enhanced performance and cater to evolving tastes with a variety of flavors. The market trends and analysis highlight the significant growth in the Asia-Pacific region, with Spain and Italy showing substantial consumption. The Coca-Cola Company and Monster Beverage Corporation contribute to the market's growth, offering a range of products available in cans. Amid concerns about sugar content, market research and growth strategies focus on developing low-sugar alternatives, while convenience stores play a crucial role in maintaining the industry's high growth rate.
The market has witnessed intriguing shifts recently, marked by the influence of various factors like alcoholic beverage consumption patterns, COVID-19 pandemic effects, and evolving consumer behaviour. There was a shift in preferences as people adapted to altered routines, leading to fluctuations in consumption habits, subsequently impacting the demand for drinks.
The employ dynamic marketing and advertising strategies, leveraging market forecasting to identify opportunities. In countries like Turkey and the Netherlands, companies capitalize on market insights and statistics to tailor their approach. Advertising emphasizes the appeal to various demographics, including children, positioning drinks as suitable for exercise and daily activities. Brands like Rockstar employ social media to reach millions, driving drink sales. Marketing strategies often highlight the use of natural sweeteners and affordability, aligning with consumer preferences. The government's role in regulating these products adds a layer of strategy while emphasizing volume figures underscores the industry's significant presence in the global market.
Increased focus on marketing and promotional activities is the primary trend in the market. Nowadays, people are searching for their favorite athletes and teams and using the products they use. As a result, sports drinks players like Red Bull and Monster Beverage Corp., through these promotional activities, try to convince consumers to use products used by their favourite athletes and teams. Several players are following in the footsteps of these great players. Besides being affiliated with sports teams, they also focus on the millennial population, because this is the main customer segment of energy drinks.
Furthermore, suppliers use catchy slogans for their brands. For example, Machu Picchu Energy is a feel-good brand startup. Create a good tagline that reflects the functional and emotional benefits of your product and its social network. The factors like Fructose content, Mountain Dew and Starbucks in these beverages and their impact on dietary habits, coupled with changing demographics and Human migration trends, contributed to the evolving landscape of the market. As a result, suppliers are constantly coming up with new promotional and marketing strategies to attract customers and gain a competitive advantage, which will fuel the growth of the market during the period. forecast.
The future outlook of the market is marked by global opportunities and evolving needs. Entities in the drink industry target diverse audiences seeking an energy boost. With notable developments in packaging, competitors, including Australian entities, are vying for millions in markets like Russia, Malaysia, and the Philippines. As the industry adapts to changing consumer preferences and lifestyles, the focus on innovation and meeting diverse needs positions it for substantial growth across the globe. Strategic planning and targeted marketing efforts will play a pivotal role in capitalizing on emerging opportunities in this dynamic and competitive market.
Stiff competition from low-cost substitutes is a challenge that affects the growth of the market. drinks face inflexible competition from cheap alternatives such as fruit juices, soft drinks, and other flavored drinks. Although they do not contain stimulants like ginseng, guarana, and others, they do contain other energy substances such as glucose, vitamins, and minerals. These alternatives have been in the market long before energy drinks and are in high demand.
In addition, since caffeinated beverages such as coffee and tea are already popular, sellers need to create a distinctive image of drinks in the minds of consumers. As a result, inflexible competition from low-cost alternatives will impede the growth of the market during the forecast period.
The offline segment generates revenue from product sales through hypermarkets, supermarkets, clubs, department stores, and independent retailers. Sellers are driving offline sales by expanding their in-store operations across locations. Businesses can increase sales and serve all types of consumers through expansion in large geographic areas. With the growth of retail channels in cities and regions, customers have become familiar with different types of drinks. Thus, such factors will drive the growth of the offline segment in the global market during the forecast period.
The shift in shopping preferences drives beverage sales through online channels, which are expected to increase significantly during the forecast period. The penetration and geographic reach of e-commerce are the main drivers of this change. Amazon.com Inc. (Amazon), Rakuten Inc., Alibaba Group Holding Ltd., and JD.com Inc. Retailers like Walmart, Costco Wholesale Corp., and Sears, which sell soft drinks, have also introduced their e-commerce portals. Strong infrastructure for penetration of e-commerce services also increases the preference for online distribution. Additionally, in the retail segment, Amazon and Target Corporation played pivotal roles in the distribution and accessibility of drinks, influencing the market dynamics with innovative strategies, while supermarkets like Kroger and Safeway witnessed shifts in sales patterns and consumer preferences.
The market share growth by the sparkling drinks segment will be significant during the forecast period. Sparkling drinks are said to provide instant energy, they are very popular among the young generation all over the world. To meet the high popularity among the young population, suppliers are developing various types of carbonated drinks. Continuous supplier improvement can increase their customer base.
The sparkling energy drinks segment was valued at USD 57.67 billion in 2017 and continued to grow until 2021.
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The sparkling drinks market is expected to stabilize in the coming years due to the adverse health effects of carbonated drinks such as belching and heartburn. Consuming a lot of soft drinks increases the risk of chronic diseases such as diabetes and obesity. Therefore, factors such as increasing health awareness and increasing health awareness among millennials are expected to hinder the growth of the sparklings segment during the projection period.
Its mainly made from still, non-carbonated water. Coca-Cola and Monster Energy are key players operating in the static market. Furthermore, still, energy drinks are essentially favored by athletes and consumers who are trying to avoid soft drinks. With the trend of healthy eating, the market share is still likely to increase as is still considered healthier than carbonated water. Therefore, all these factors will drive the growth of the market.
The drinks market showcases robust product segmentation, catering to diverse consumer needs. Popular in the United States and the United Kingdom, these beverages target individuals seeking enhanced levels and stamina. A variety of brands offer products in bottles, aligning with the interests of health-conscious consumers. The inclusion of Vitamin B in some products emphasizes health benefits. Teenagers, drawn to these beverages for their stimulating effects, contribute to a broad consumer base. Competitors engage in continuous development to capture the interest of demographics across various income levels. Disclaimer usage ensures responsible consumption, reflecting the industry's commitment to transparency.
APAC is estimated to contribute 36% to the growth of the global market during the forecast period.
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. As disposable income levels have increased in recent years, consumers may spend more on functional drinks . In addition, the increase in retail and the increase in the number of private labels in these economies provide a channel for selling drinks.
Furthermore, suppliers are expanding their regional presence by adopting different business strategies, such as launching products in specific countries. To expand their presence in the APAC market, many manufacturers are investing heavily in marketing and promoting their brands. The players are also proposing innovative measures to increase their market share. These factors will fuel the market growth during the forecast period.
The economy of China, altering the market environment, and the evolving impact of dietary supplements on consumer preferences. The impact of dietary supplements on formulations and their reception by health-conscious consumers has become increasingly noteworthy in China. Furthermore, the rise of a Subscription business model in the beverage industry significantly influenced the market. Subscription-based services tailored to specific consumer needs gained traction, introducing a new dimension to product accessibility and market penetration.
In 2020, the outbreak of COVID-19 in the region in early 2020 negatively impacted the arket. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of stores, food service centers, and cafes. In addition, increasing sales from e-commerce channels will drive the growth of the market in the region. Such factors are expected to drive the market 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 market growth analysis 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. The market forecast report also offers data that 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.
Competitive analysis in the market extends beyond traditional rivals, considering emerging threats and wellness trends. Manufacturers strategically incorporate B vitamins and explore supplement options to attract health-conscious consumers, particularly Gen Z. Packaging types and distribution channels, including grocery stores and shots, play a vital role in market growth and trends. Examples like Vital Pharmaceuticals Inc. provide valuable insights into successful strategies. The study of market analysis and reports, including executive summary, enables companies to stay ahead of new entrants and adapt to dynamic market forecasts, ensuring a robust competitive basis in the ever-evolving drinks landscape.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Energy Drinks Market Scope
Growth momentum & CAGR
Accelerate at a CAGR of 8%
Market growth 2023-2027
USD 40.04 billion
YoY growth 2022-2023(%)
APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution
APAC at 36%
US, China, Japan, Germany, and UK
|Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled
Abbott Laboratories, Britvic plc, Cargill Inc., Decathlon SA, DyDo Group Holdings Inc., Hype Energy, Keurig Dr Pepper Inc., Monster Beverage Corp., National Beverage Corp., Otsuka Holdings Co. Ltd., PepsiCo Inc., Red Bull GmbH, Slades Beverages, Suntory Beverage and Food Europe, and The Coca Cola Co.
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
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