Energy Drinks Global Market Report 2024

The energy drinks market size has grown strongly in recent years. It will grow from $62.85 billion in 2023 to $67.64 billion in 2024 at a compound annual growth rate (CAGR) of 7.6%. The growth observed in the historical period can be attributed to marketing and branding efforts, changing lifestyles, innovations in formulations, sports and fitness trends, and evolving distribution channels.

The energy drinks market size is expected to see strong growth in the next few years. It will grow to $90.49 billion in 2028 at a compound annual growth rate (CAGR) of 7.5%. The anticipated growth in the forecast period can be attributed to health consciousness, rising disposable income, innovation in flavors and formats, globalization and market expansion, e-commerce growth, and the incorporation of functional ingredients. Major trends in the forecast period include a sustainability focus, customization and personalization, e-commerce expansion, functional blurring, and increased regulatory scrutiny and transparency.

The anticipated growth of the energy drink market is set to be propelled by the expanding e-commerce industry. E-commerce, which involves the online buying and selling of goods and services, plays a crucial role in the energy drink sector. It provides consumers with a convenient platform to purchase and explore a diverse range of products, allowing brands to tap into a broader market. For example, in November 2023, the UK ranked as the world's third-largest e-commerce market, following China, according to the International Trade Administration, a US-based Department of Commerce. As of January 2021, U.S. consumer e-commerce comprised 36.3% of the UK's total retail market, and e-commerce revenue is projected to reach $285.60 billion by 2025. Consequently, the expansion of the e-commerce industry is a key driver behind the growth of the energy drink market.

The anticipated growth of the energy drink market is set to be driven by the increasing rates of sports participation. A sports participant is someone actively engaged in sports or physical activities, including athletes, competitors, or enthusiasts taking part in organized events. Energy drinks play a crucial role for sports participants, offering a quick source of caffeine and other ingredients to enhance endurance and alertness during physical activities. This aids athletes in optimizing their performance and recovery. For example, in January 2022, Football Australia reported a 20% year-over-year increase in total sports event participation, rising from 1,181,931 to 1,421,804 participants nationwide. Outdoor football participation saw a 16% increase, with 77,107 more participants year over year. School football engagement also rose significantly, with a 64% increase, involving 151,088 more students participating in sports at their schools and interschool competitions. The participation of women and girls in outdoor football, social futsal, and registered futsal grew by more than 21%, reaching 174,380 participants compared to 143,873 in 2020. As a result, the surge in sports participation rates is a key factor propelling the growth of the energy drink market.

The energy drinks market is witnessing a significant trend with the introduction of new flavors. Incorporating flavors such as coconut, cola, and others not only provides a fresh taste but also brings added health benefits for consumers. Many companies in the energy drinks market are embracing this trend by introducing diverse flavors to attract new customers and boost sales. For example, in April 2021, Red Bull, a multinational energy drink manufacturer, unveiled Coconut Edition Sugar-free energy drinks in 25cl and 35cl cans. This variant includes B-group vitamins, taurine, and acesulfame-K as a sweetening agent, offering health-conscious consumers additional benefits. Similarly, Rockstar Inc., a US-based energy drink company, has introduced new flavored energy drinks such as Rockstar Recovery in Marshmallow.

Major companies in the energy drink market are increasingly focusing on introducing zero-sugar energy drinks to gain a competitive advantage. Zero-sugar energy drinks are beverages that offer an energy boost, typically derived from caffeine and other ingredients, without the addition of any sugar. For instance, in January 2023, GNC Holdings LLC, a US-based retail company, unveiled PRIME Energy Drinks. These energy drinks aim to provide consumers with enhanced energy levels and are available in two flavors: original and hydration. The original variant contains 200mg of caffeine and 300mg of electrolytes, while the Hydration flavor is sugar-free and contains 200mg of caffeine and 300mg of electrolytes. PRIME Energy Drinks are carbonated, vegan, and crafted using filtered water, coconut water concentrate, natural flavor, and other natural ingredients.

In July 2023, Monster Beverage Corporation, a US-based beverage company, completed the acquisition of Bang Energy for $362 million. This strategic move is anticipated to enhance Monster Beverage Corporation's product portfolio and bolster its position in the market. Bang Energy, a US-based energy drink company renowned for its flavored energy drinks, is now part of Monster Beverage Corporation's growing portfolio.

Major companies operating in the energy drinks market report are The Taisho Pharmaceutical Co. Ltd., Nestle S.A., PepsiCo, Unilever PLC, Coca-Cola Company, Mondelez International Inc., The Kraft Heinz Company, Suntory Holdings Limited, The Hershey Company, Red Bull GmbH, Campbell Soup Company, Amway Corporation, The J.M. Smucker Company, Monster Beverage Corporation, Franchise Group Inc., Arizona Beverage Company, Dali Foods Group Company Limited, The Gatorade Company Inc., National Beverage Corp., Osotspa Public Company Limited, Celsius Holdings Inc., Vital Pharmaceuticals Inc., Rockstar Inc., Xyience Inc., Power Horse Energy Drinks GmbH, Eastroc Beverage (Group) Co. Ltd., Living Essentials LLC, Bundled LLC, Metta Beverage Inc., Zydus Lifesciences Limited.

North America was the largest region in the energy drinks market in 2023. The Asia-Pacific is expected to be the fastest-growing region in the energy drinks market during the forecast period. The regions covered in the energy drinks market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the energy drinks market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Energy drinks come in various product types, primarily categorized as drinks, shots, and mixers. These beverages are carbonated and typically contain ingredients such as sugar and caffeine, aimed at boosting physical performance and enhancing mental alertness. The distribution channels for energy drinks include convenience stores, supermarkets/hypermarkets, pharmacies/health stores, and online retail. The packaging options for these energy drinks range from cans and bottles to other formats, offering consumers diverse choices to suit their preferences.

The energy drinks market research report is one of a series of new reports that provides energy drinks market statistics, including energy drinks industry global market size, regional shares, competitors with a energy drinks market share, detailed energy drinks market segments, market trends and opportunities, and any further data you may need to thrive in the energy drinks industry. This energy drinks market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The energy drinks market consists of sales of taurine, ginseng, guarana extract, glucuronolactone, sugars, l-carnitine, and B vitamins. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.