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The global energy drinks market size is projected to reach over USD 125.40 billion by 2027, at a CAGR of 8% between 2022 and 2027. Energy drinks as well as sports drinks, containing high levels of caffeine, taurine, and other stimulants, are popular among young adults and athletes for increased energy and focus. Key players include Red Bull, Monster Beverage Corporation, and Rockstar Inc. Market growth is fueled by rising consumption, despite concerns about potential health risks leading to stricter 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, sports and energy drinks 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 energy drink growth. This introduction sets the stage for exploring essential facts, executive summaries, and the broader dynamics shaping the industry's size and evolving trends.
The energy drinks market, encompassing soft drink and carbonated beverages, includes a variety of products like fruit and vegetable blends, bottled water, and beverage concentrates. Rising incomes and a focus on health wellness drive demand for immunity-boosting beverages with vitamins and minerals, guarana, and electrolytes. Popular among the younger generation and adults segment, these drinks offer energy levels, mental stimulation, and improved cognition. Despite concerns about caffeine overdose, hypertension, and nausea, consumer lifestyle trends and expert analysis show evolving purchasing patterns for functional ingredients like yerba mate and green tea extract.
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 caffeine-based 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 energy beverage market. Thus, factors such as hectic style and immediate demand will propel the energy drink market growth during the forecast period.
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 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 and other vitamins 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 and Latin America 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.
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.
Customer Landscape
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Energy Drinks Market Scope |
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Report Coverage |
Details |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8% |
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Market growth 2023-2027 |
USD 40.04 billion |
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Market structure |
Concentrated |
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YoY growth 2022-2023(%) |
7.54 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 36% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Market analysis and report, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market worth and condition analysis for forecast period |
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Customization purview |
If our market research and growth report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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