The demand for energy drinks is significantly increasing with consumers looking for ways of ensuring better health and immunity. There has been a sharp increase in the demand for coffee, dairy juice and other beverages across North America and Europe as consumers stockpile on essential products to sustain them during quarantine period amidst the prevailing COVID-19 crisis.
Consumers prefer products that come from natural sources and are vegan, GMO-free, organic, and have other clean label attributes. Their focus on holistic living and wellness is a key factor driving the energy drinks market. Consumers are determined to mark more purposeful choices with their buying power, purchasing with intention of creating positive and valuable experiences, which is supporting the expansion of the market.
It has been found that the consumers are in favour of beverages that contain natural ingredients and added antioxidants, vitamins and minerals. In energy drinks, fruit concentrates are added which offer several health benefits. A rising awareness of this will fuel the demand for energy drinks in the coming years.
“Manufacturers in the market are expected to focus more on their offerings and make them healthier due to increasing concern about sugar content among consumers. Besides this, innovation in flavour is enabling growth in the flavoured drinks category of the energy drinks market, says an FMI analyst.”
Key Takeaways from the Energy drinks Market Study
For More Detailed Insights on Energy Drinks Market
- The energy drinks market is estimated to be valued US$ 203.6 Bn in 2020, registering a CAGR of 7% between 2020 and 2030.
- Europe is forecast to account for the leading market share in the global energy drinks market in terms of value sales by 2030 owing to the ever rising consumption of healthy beverages in the Europe region.
- Demand for ready to drink energy drinks will rise in the coming years.
- Companies are focusing on augmenting their business presence in developing countries. They are focusing on geographical expansion. In addition to this, companies are entering into strategic alliances across the globe via acquisitions, mergers and partnerships.
Who is winning?
A few of the companies operating in the energy drinks market are Red Bull GmbH, Monster Beverage Corp., Kraft Foods Inc., Nestlé S.A., The Gatorade Company, Inc., PepsiCo Inc., Suntory Holdings Ltd., Rockstar Inc., Arizona Beverage Company, Sinebrychoff (Carlsberg Group), HYPE Energy, Living Essentials LLC, Zipfizz Corporation, Asia Brewery Incorporated, Unique Beverage Company LLC, Bomba USA, LLC, Vital Pharmaceuticals, Inc., NEALKO ORAVAN, spol. s r.o. (Black Hoarse), Xyience Energy Drink, Energy Beverages LLC, and others.
Producers of energy drinks are regularly offering consumers with more innovative products including unique ingredients and flavours. Innovation in energy drinks is intended to meet the evolving consumer demand for healthier beverages without compromising on the taste, flavor, texture, and nutritional qualities of the product.
- In April 2019, PepsiCo Inc. launched PepsiCo's Propel Vitamin Boost, which contains vitamins and electrolytes. The product contains daily recommended values of vitamin B3, B5, B6, C, and E. It is available in three flavors- peach mango, apple pear, and strawberry raspberry.
- In 2015, Unilever signed a partnership agreement with JD.com, China's largest online direct sales company, which is expected to help the company to expand its presence in China through JD’s extensive online sales platform
Get Valuable Insights into Energy drinks Market
Future Market Insights, in its new offering, provides an unbiased analysis of the global energy drinks market, presenting historical demand data (2015-2019) and forecast statistics for the period from 2020-2030. The study divulges compelling insights on the energy drinks market based product type (Caffeinated and De-caffeinated), format (shots, powder and ready to drink), flavour (flavoured and unflavoured), nature (organic and conventional), distribution channel (b2b and b2c) across seven major regions.
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