Global Energy Drinks Market Size, Share, and COVID-19 Impact Analysis, By Packaging Type (Bottles & Cans), By Product (Drinks, Shots, Mixers), By Distribution Channel (Supermarket/Hypermarket, Convenience stores, Specialty Stores & Online), and by Region (North America, Europe, Asia-Pacific, South America, Middle East and Africa) Analysis and Forecast 2022-2028
KEY MARKET INSIGHTS
The global Energy Drinks Market was valued at USD 60.7 Bn in 2021. The market is projected to grow USD 91.6 billion by 2028, at a CAGR of 7.3%. An energy drink is a beverage that contains a high amount of stimulants, such as caffeine, taurine, ginseng, guarana, and other ingredients. It improves physical performance as well as mental acuity.
Energy drinks can be carbonated or not. Sports drinks, on the other hand, are used to replenish electrolytes and water during or after physical activity. They're also distinct from tea and coffee, which are brewed, have fewer ingredients, and can be decaffeinated. Energy drink manufacturers claim that their goods boost energy levels. The popularity of energy drinks, which provide quick energy as well as mental and physical stimulation, is one of the main reasons for their market rise. Taurine, another important component, is required for cardiovascular function as well as skeletal muscle development.
The global energy drinks market forecast is largely influenced by these factors. Furthermore, rising health awareness, changing consumer lifestyles, and increased awareness of health wellness goods are projected to drive market expansion in the near future. Furthermore, the global industry is growing due to a surge in popularity among youngsters. Caffeine overdose, on the other hand, can cause hypertension, nausea, restlessness, and other health problems, limiting the expansion of the energy drink sector.
On the contrary, throughout the projected period, a shift in consumer preferences toward beverage consumption and a healthy lifestyle is expected to generate profitable chances for market advancement.
The outbreak of the COVID-19 disease in 2020 had a moderate impact on the global energy drinks market. The supply chain disruptions, lack of labor, partial or complete closure of manufacturing facilities, and difficulties in the procurement of raw materials were the major issue faced by the manufacturers during the pandemic.
Rising Demand for Read-to-Drink Beverages
Consumer behavior has shifted as a result of exponential population expansion, rising disposable income, and changing lifestyles. Consumers are preferring for ready-to-drink beverages as a result of their hectic schedules and extended working hours. The demand for natural products such as tea, coffee, wine, and water among consumers over-added antioxidants, minerals, and vitamins. In addition, the use of appealing and interactive printings on metal cans is gaining popularity as a way to improve brand recognition.
Increasing Demand for Energy Drinks among Millennials in Developed Countries
Growing consumer awareness regarding health benefits is creating a surge in demand for energy drinks among millennials is propelling the growth of the global energy drinks market. The high consumption of energy drinks in the United States, along with the country's massive coffee culture, has propelled the concept of energy shots into the mainstream, which is a major driver for boosting energy drink sales in the country.
Growing Consumer Awareness Regarding Health Benefits
The demand for energy drinks is being steered by rising health consciousness and a busy lifestyle, as well as growing customer understanding of the product's health benefits. Health benefits such as joint health, immune health, digestive health, and brain health amongst others. Growing consumer health consciousness, combined with rising obesity concerns around the globe, is spurring the quick adoption of healthy food and beverage products, adding to the global energy drinks market to push forward.
Shifting Focus to PET Bottles Will Hinder the Beverage Industry
Beverage manufacturers are shifting their preference for PET and glass bottles which is likely to hinder the market growth of the global beverage cans market. Beverage manufacturers are increasing their demand for PET bottles since they have similar features to metal cans, such as reusability, durability, lightweight, and oxygen gas barrier capabilities. When compared to metal cans, PET bottles are a low-cost packaging option for beverage manufacturers. Furthermore, the energy and cost required to create PET bottles is far lower than that necessary to manufacture metal cans. The aforementioned factors will limit market expansion.
The global energy drinks market is segmented by Packaging Type (Bottles & Cans), by Product (Drinks, Shots & Mixers), by Distribution Channel (Supermarket/Hypermarket, Convenience stores, Specialty Stores & Online) and region. Based on the product type, the market is categorized into Bottles & Cans. Based on connectivity, the market is categorized into Drinks & Shots. Based on distribution channel, the market is categorized into supermarket/hypermarket, Convenience stores, specialty store & online. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, South America, Middle East and Africa.
Packaging Type Insights
Based on the product type segment, the global energy drinks market is categorized into bottles & cans. The cans segment has dominated the market share of the global energy drinks market in 2020 owing to the increased demand across the young and old millennials across the world. Easy handling and availability is propelling the growth of the global energy drinks market.
Distribution Channel Insights
Based on the distribution channel segment, the global energy drinks market is categorized into supermarkets/hypermarkets, convenience stores, specialty stores & online. The convenience stores segment is dominated the market share in 2020 owing to the growing number of retail shops is increasing in both urban and rural locations.
North America region is dominating the market share owing to the high product adoption by consumers and increased consumption of carbonated beverages along with awareness regarding sustainability. The presence of major players and increased consumer awareness in the region is boosting the sales of the global energy drinks market.
For instance, in January 2019, Coca-Cola is planning to launch an energy drink in the U.S. with the flavor cherry. However, Asia Pacific is expected to witness the highest growth rate during the forecast period due to the rising population and urbanization activities. The increased number of athletes and the growing popularity of various exercise activities are fueling market growth.
According to the Special Olympics, India saw the most growth in 2018, with around 80,000 new child athletes. However, rising middle-class customers with changing lifestyles, particularly in emerging nations like China and India, are driving demand for naturally flavored sports drinks.
KEY INDUSTRY PLAYERS
· Red Bull
· Monster Energy
· Coca Cola
· AriZona Beverages
· National Beverage Corp.
· Keurig Dr Pepper, Inc.
· 5-hour ENERGY
· The Cloud 9 Energy Drink
· Vitale Beverages
· Xtreme Energy Group Limited
KEY INDUSTRY DEVELOPMENTS:
March 2021- Red Bull announced to launch of a new Dragon Fruit flavor. The can contains 27 grams of sugar plus 80 milligrams of caffeine—almost the same amount of caffeine as a home-brewed cup of coffee.
January 2021- Monster Energy announced its latest addition to the Monster Energy Ultra family, Ultra Gold, inspired by the ancient Greek legendary libation nectar of ambrosia. The Ultra Gold energy drink claims to be sugar-free.
By Packaging Type
By Distribution Channel
- Convenience stores
- Specialty Stores
- North America- U.S., Mexico, Canada
- Europe- UK, France, Germany, Italy, Spain, Rest of Europe
- Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
- South America- Brazil, Argentina, Colombia, Rest of South America
- The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa
Global Energy Drinks Market Size