+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

Energy Drinks Market - Growth, Trends, and Forecasts (2023-2028)

  • PDF Icon


  • 130 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 4771939

Quick Summary:

In a world rapidly transitioning towards healthy and active lifestyles, the demand for energy drinks burgeons. Fueled by increased urbanization, rising disposable incomes, and a growing preference for non-carbonated drinks, the market for these performance-enhancing beverages is poised for significant growth. These products, reputed for improving endurance, focus, and catering to the fluctuating lifestyle demands of a global audience, serve as an ideal choice for individuals managing long working hours and high-intensity social gatherings.

Incorporating a trend of immunity-boosting ingredients and a shift towards low or no sugar alternatives, the energy drink market continues to innovate and evolve. A thriving health-conscious consumer base is driving the market, leading to an accelerated entry of players into the market. Simultaneously, robust promotional strategies and advertisements further fuel market expansion. By purchasing this market research report, gain invaluable insights into this dynamic market, understand emerging trends, and make informed decisions that can set your business on a trajectory of success.

The energy drinks market is projected to register a CAGR of 8.46% over the upcoming five years.

Increased urbanization, rising disposable incomes, and growing consumer health consciousness all contribute to an increase in demand for non-carbonated beverages. Energy drinks are widely consumed by adolescents due to their claims of improving performance, endurance, and alertness. At the same time, long and erratic working hours and the increasing occurrence of social gatherings are driving consumers toward the consumption of energy drinks.​

There is a rise in the number of consumers who are doing workouts and engaging in various exercise regimes in the comfort of their homes, leading to a continued need for energy drinks. There is a rising preference for rich sources of immunity-boosting foods and beverages that contain vitamins, minerals, and other essential ingredients that boost immunity. This has forced a greater number of players to enter the functional energy drink space in the market. Brands are trying to leverage the trend of 'immunity-boosting' by incorporating perceived ingredients or adding the concept of immunity boosters into their marketing activities.

Moreover, growth in the number of health-conscious consumers and increasing consumer awareness regarding active lifestyles, along with growing rates of lifestyle-related diseases, inspired health-oriented consumers to opt for healthy and sugar-free drinks. The energy drink market is also projected to grow due to an increase in promotional and advertisement strategies.

Energy Drinks Market Trends

Growing Consumer Inclination Toward Low Sugar/Sugar-Free Beverages

Because of the high prevalence of diabetes and other chronic illness, consumers are becoming more aware of the importance of a healthy diet and an active lifestyle. Consumers are choosing low-calorie, low-sugar, or sugar-free dietary patterns in foods and beverages as a result of rising health concerns and increased attempts to prevent the emergence of lifestyle illnesses. Natural sweeteners, such as stevia, are preferred by consumers in their beverages. Companies like PepsiCo Inc. and Coca-Cola have committed to eliminating artificial additives and lowering sugar in their products. Furthermore, changing consumer preferences for sugar-free or low-sugar beverages prompted beverage manufacturers to create new products. Customers are attempting to avoid sugary drinks in order to prevent the negative consequences of excessive sugar consumption, so key players are working on a variety of new products to meet the rising demand for such items. Nexba, a provider of non-alcoholic beverages, took a similar strategy, expanding its product selection to meet the expectations of health-conscious consumers. For instance, in May 2022, Nexba introduced a range of caffeine- and sugar-free energy drinks with added vitamins and prebiotics. Nexba Natural Energy comes in two flavors, namely, Lemon & Yuzu and Wild Citrus.

North America Dominates the Market

The high consumption of energy drinks and the massive coffee culture in the United States have pushed the notion of energy shots into the mainstream, which is a major factor driving the sales of energy drinks in the country. Energy drinks are an integral part of social gatherings, parties, and celebrations in the United States. Manufacturers such as Red Bull and Monster Beverages are offering their energy drinks in multiple flavors and two major packaging types, which include PET bottles and cans, providing consumers with a wide range from which to choose their suitable drinks.​ Furthermore, soda consumption in the country is declining, which has created a great opportunity for manufacturers such as Coca-Cola and PepsiCo, who are attempting to capitalize on the name recognition of their legacy brands by making a bigger dent in the growing energy drink category.​ In addition, the manufacturers are taking strategic initiatives to expand their distribution networks and boost their geographical presence. For example, in June 2021, PepsiCo Beverages Canada became the exclusive national distributor of Guru plant-based energy drinks. It is expected that Guru will benefit from PepsiCo’s expansive direct-to-store distribution network across Canada.

Energy Drinks Market Competitor Analysis

The energy drink market is competitive, making it hard for new and small companies to compete. Red Bull, the Coca-Cola Company, Rockstar Inc., and PepsiCo are a few of the many companies with high shares in the energy drink market. Companies operating in the market are focusing on personalization and convenience and are also providing healthy, zero-calorie, and low-sugar functional energy drinks to scale their energy drink production. Additionally, product launches may help companies tap into the huge potential for growth in developing regions. Most manufacturers create product awareness through advertising and celebrity endorsements. For example, sports events are sponsored by energy drink manufacturers.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Product Type
5.1.1 Shots
5.1.2 Drinks
5.1.3 Mixers
5.2 Packaging Type
5.2.1 Bottles
5.2.2 Cans
5.3 Distribution Channel
5.3.1 Supermarkets/Hypermarkets
5.3.2 Specialty Stores
5.3.3 Convenience Stores
5.3.4 Online Retail Stores
5.3.5 Other Distribution Channels
5.4 Geography
5.4.1 North America United States Canada Mexico Rest of North America
5.4.2 Europe United Kingdom Germany Spain France Italy Russia Rest of Europe
5.4.3 Asia-Pacific China Japan India Australia Rest of Asia-Pacific
5.4.4 South America Brazil Argentina Rest of South America
5.4.5 Middle East and Africa South Africa United Arab Emirates Rest of Middle East and Africa
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Red Bull GmbH
6.3.2 PepsiCo Inc.
6.3.3 The Coca-Cola Company
6.3.4 Vital Pharmaceuticals Inc.
6.3.5 National Beverage Corp.
6.3.6 Alticor Global Holdings Inc (Amway Corp)
6.3.7 Molson Coors Beverage Company
6.3.8 Suntory Holdings Limited
6.3.9 Aspire Brands Inc.
6.3.10 Vuka Brands

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Red Bull GmbH
  • PepsiCo Inc.
  • The Coca-Cola Company
  • Vital Pharmaceuticals Inc.
  • National Beverage Corp.
  • Alticor Global Holdings Inc (Amway Corp)
  • Molson Coors Beverage Company
  • Suntory Holdings Limited
  • Aspire Brands Inc.
  • Vuka Brands