Sports Drink Market by Distribution Channel, Packaging, and Geography - Forecast and Analysis 2023-2027

Sports Drink Market Forecast 2023-2027

The sports drink market is estimated to increase by USD 13.52 billion and grow at a CAGR of 6.18% between 2022 and 2027. Market growth hinges on various factors, such as heightened consumer interest in health and wellness, augmented consumption by millennials, and innovations in packaging. Challenges include competition from alternative health and wellness products, projected increases in steel costs, and the prevalent availability of counterfeit goods. With healthcare costs on the rise and an aging population worldwide, individuals are increasingly prioritizing their health and seeking convenient and affordable ways to maintain wellness. This trend presents opportunities for manufacturers and retailers to offer sports drinks containing essential nutrients such as carbohydrates, electrolytes, vitamins, and minerals, which are perceived as contributing to a nutritious diet.

What will be the size of the Sports Drink Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by distribution channel (offline and online), packaging (PET bottles and cans), and geography (APAC, North America, Europe, South America, and Middle East and Africa) It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By Distribution

The market share growth by the offline segment will be significant during the forecast period. Large retail outlets such as hypermarkets, supermarkets, and department stores offer a wide range of products, besides discounts on sales and other promotional offers. The widespread penetration of these organized retail stores has led to increased sales of sports drinks from these stores, most of which have separate, dedicated sections for sports and energy drinks. The wide popularity of these retail stores helps sports drink manufacturers expand their consumer base. Global retailers that operate through such retail formats continue to benefit from the geographically dispersed and expansive networks of stores. Such factors will increase segment growth during the forecast period.

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The offline segment was valued at USD 23.78 billion in 2017 and continue to grow by 2021. Sports drinks are mostly sold through the offline distribution channel, which includes retail formats such as specialty stores, hypermarkets, supermarkets, convenience stores, warehouse clubs, or pharmacy stores. These retail formats help in generating most of the revenue in the global market. The offline distribution channel accounts for the major portion of the total global market, with a major part of the revenue stemming from retail formats, such as hypermarkets, supermarkets, convenience stores, and warehouse clubs. Such factors are expected to fuel the growth of the segment in the market during the forecast period.

By Regions

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APAC is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in the region is also driven by the growing number of consumers who want to achieve healthier lifestyles by participating in sports, which will trigger an increase in the consumption. A majority of the consumer's disposable income is spent on healthcare and related products. However, stringent government regulations and the increase in the number of counterfeit products might hinder the growth of the market. As a result, market vendors are expanding their presence in emerging economies. Vendors are setting up their manufacturing facilities in APAC, as the region provides them with low-cost labor and raw materials, thus allowing them to manufacture goods at a lower cost. Also, they are expanding their marketing and distribution activities due to the increased penetration of the Internet in APAC. More vendors are adopting online channels to sell sports nutrition products, due to the wide coverage of such channels. However, the increase in the number of counterfeit products might hinder the growth of the market in the region. Despite this, continuous product innovation, promotions that target sports enthusiasts, the presence of weight-conscious people, and the increase in online retailing are expected to drive the growth of the market during the forecast period.

Market Dynamics and Customer Landscape

The market is driven by various factors and trends that contribute to its growth and evolution. Firstly, the increasing focus on fitness activities and athletic performance among consumers, including athletes and casual exercisers, is propelling the demand for sports drinks. These beverages, like Gatorade and Coca-Cola's offerings such as Cherry Lime and Citrus Berry, provide hydration and replenish electrolytes lost during physical activities.

Collaborations between manufacturers and Business Information Services drive innovation in the market, leading to the development of functional beverages tailored to meet the diverse needs and preferences of consumers. Additionally, investments in research and development contribute to the introduction of new flavors and formulations, catering to changing consumer tastes and preferences. Emerging nations are witnessing a surge in demand for sports drinks due to increasing awareness about health and fitness, as well as changing lifestyle trends influenced by fashion and wellness movements.

Furthermore, the market is experiencing a shift towards isotonic and hypotonic sports drinks, which offer optimal hydration and faster absorption of fluids compared to hypertonic alternatives. These innovations in product formulations and packaging, including bottles and cans, cater to the convenience and preferences of consumers, driving further growth in the sports drink market.

Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Consumer focus on health and wellness is a significant driver propelling the growth of the global Sports Drink uymarket. With healthcare costs rising and an aging population worldwide, consumers are increasingly prioritizing their health and seeking convenient and affordable ways to maintain wellness. This trend creates opportunities for manufacturers and retailers to offer sports drinks containing essential nutrients like carbohydrates, electrolytes, vitamins, and minerals, which are perceived as contributing to a nutritious diet. Additionally, the demand for energy drinks, enriched with stimulants like caffeine and guarana, is rising as consumers seek products to enhance productivity and boost energy levels.

Moreover, the evolving lifestyle trend of eating and drinking healthy is driving consumers to spend more on health and wellness products, including sports drinks. Manufacturers can capitalize on this trend by innovating and introducing new products aimed at improving health and well-being. As a result, the Sports Drink market is expected to experience significant growth in the forecast period, driven by consumer awareness of the importance of health and wellness and their willingness to invest in products that support their lifestyle choices.

Significant Market Trend

Increased focus on light-weighting cans is the primary trend in the market. Light weighting is one of the methods used for reducing the cost of packaging and improving production sustainability. From 1970 to 1980, an average steel beverage can of around 300 ml weighed around 40-50 g. In the case of aluminium cans, the average weight was reduced by around 35%-45% during the same time. During the forecast period, can designing companies will focus on material-saving measures and reduce processing times? The industry is trying to reduce the thickness of the lids and can bodies.

At present, the thickness has been reduced from under 0.08 mm to 0.10 mm. One gram less beverage can weight can save around 55,000-60,000 tons of metal. As the focus grows on sustainability, the companies will increase research and development to reduce further the weight of the cans, which is expected to fuel the market growth during the forecast period.

Major Market Challenge

Threats from other health and wellness products are a major challenge to the growth of the global market. The availability of effective substitutes for sports drinks, such as supplementary tablets, protein bars and powders, and energy drinks or smoothies, is a significant challenge that hampers the growth of the market. Protein shakes or smoothies are considerably more natural and provide comparatively more direct nutrition than sports drinks.

Sports drinks are usually a carbonated liquid that contains sugar. On the other side, protein shakes and protein bars are available in no-sugar variants and contain a high natural nutrition content. These highly competitive alternatives might hamper the growth of the market in focus. The global market is expected to face a challenge from this drawback during the forecast period.

Key Market Customer Landscape

The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Sports Drink Market Vendors?

Vendors 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.

Bio Steel Nordics.- The company offers sports hydration mix sports drink which has mixed berry flavor in taste, thus keeping the body hydrated while playing sports. Also, under this segment, the company offers different types of products such as hydration, proteins, essentials, and others.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Abbott Laboratories
• Acli-Mate
• Advanced Biotech
• All Sport
• BA SPORTS NUTRITION LLC
• Britvic Plc
• Decathlon SA
• Frucor Suntory New Zealand Ltd.
• GlaxoSmithKline Plc
• Grupo Embotellador ATIC SA
• Steric Trading Pty Ltd.
• Gujarat Cooperative Milk Marketing Federation Ltd.
• MyDrink Beverages
• Nestle SA
• Olvi Plc

Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Segment Overview

The 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. 

• Distribution Channel Outlook 
  • Offline
  • Online

• Packaging Outlook 
  • PET bottles
  • Cans

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market witnesses rising interest due to evolving dietary habits and increasing physical activity, particularly among athletes and fitness enthusiasts. Brands like Gatorade and Powerade dominate, offering flavors like Cherry Lime and Tropical Mango to cater to diverse tastes. With consumers prioritizing health, demand for healthier alternatives with lower sugar content and organic ingredients is on the rise. Investments in R&D drive innovations in electrolyte balance and hydration levels, targeting athletes and casual consumers alike. However, challenges include competition from functional beverages and the need for effective marketing strategies to enhance consumer awareness in both urban and rural areas.

The market is witnessing significant growth driven by increasing fitness activities and changing dietary preferences. Brands like Gatorade and Coca-Cola offer a variety of flavored sports drinks, such as Citrus Berry, to cater to diverse tastes. With a focus on athletic performance and hydration, consumers are opting for isotonic and hypotonic sports drinks to replenish electrolytes and combat dehydration. Collaboration between manufacturers and Business Information Services facilitates market expansion, especially in developing and emerging nations. However, challenges persist, including health concerns related to artificial sweeteners and carbs, urging consumers towards healthier options like Gatorade Fit.

Sports Drink Market Scope
Report Coverage	Details
Page number	161
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 6.18%
Market growth 2023-2027	USD 13.52 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	5.5
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 37%
Key countries	US, China, India, UK, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Abbott Laboratories, Acli-Mate, Advanced Biotech, All Sport, BA SPORTS NUTRITION LLC, BioSteel Nordics, Britvic Plc, Decathlon SA, Frucor Suntory New Zealand Ltd., GlaxoSmithKline Plc, Grupo Embotellador ATIC SA, Steric Trading Pty Ltd., Gujarat Cooperative Milk Marketing Federation Ltd., MyDrink Beverages, Nestle SA, Olvi Plc, PepsiCo Inc., The Coca Cola Co., The Jel Sert Co., and The Kraft Heinz Co.
Market dynamics	Parent market analysis, Market forecasting, 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 market research 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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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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