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

The European energy drink market is projected to register a CAGR of 3.8% over the next five years.

With a change in consumption habits due to the onset of the COVID pandemic, consumers are now ready to experiment with exceptionally healthy and safer new products. It prompted companies to look at exciting and affordable products. Keeping this in view and the growth in demand during the pandemic, energy drink manufacturers in the region have started diversifying their product portfolio with new ranges that include reduced sugar, plant-based, clean-label ingredients, and functional benefits.

Over the medium term, the energy drink market is one of the fastest-growing beverage markets in Europe, as consumers are looking for healthier beverage options. The higher inclination of the younger population toward energy drinks consumption and the improving living standards of the people in the region are some factors driving the energy drinks market.

Additionally, a rise in the number of health-conscious consumers, a rise in consumer knowledge of active lifestyles, and an increase in the prevalence of diseases linked to a sedentary lifestyle have encouraged customers to choose healthy and sugar-free beverages. Additionally, anticipated growth in the energy drink market is a rise in promotional and advertising tactics. Additionally, many of the large energy drink producers invest a lot of money in advertising, increasing the popularity of their brands and goods.

Europe Energy Drink Market Trends

The United Kingdom Dominates the Market

An increase in energy drinks consumption in the region can be attributed to the growing consumer demand for energy-enhancing products and the consumers' changing lifestyles and improving living standards. Initiatives taken by the leading players in the market studied to improve their distribution infrastructure, the popularity of their energy drinks, and harness the increased consumer spending potential on food and beverages are projected to promulgate the energy drinks demand during the forecast period. Due to diabetes and obesity rising concern, consumers have started to prefer sugar-free beverages with high nutritional value and taste. According to British Soft Drink Association (BSDA), the United Kingdom witnessed energy drink consumption of 906 million l in 2021.

Growing Influence of Endorsements and Social Media Marketing

Product offerings, technologies, marketing expenditures (including advertising and endorsements), pricing, production costs, customer service, digital commerce platforms, digital services and experiences, and social media presence are intense competition areas as far as the European energy drinks market is concerned. With the growing importance of social media in a shopper's purchase journey, companies are evolving and stepping up their advertising, marketing, and endorsement game across different distribution channels. It includes supermarkets/hypermarkets, specialty stores, and online retail stores, using television, radio, social media, magazines, and other print media to garner consumer attention. Furthermore, these companies have been collaborating with sports clubs and tournaments and strengthening their presence on social media platforms, like Twitter, Facebook, and Instagram, among others. It garners consumer attention, promotes its offerings portfolio, and increases brand visibility. For instance, as a part of their promotional strategy, key players, like Red Bull, own football teams, with clubs in Austria, Germany, the United States, and Brazil featuring the Red Bull trademark in their names. The company seeks to promote public image and raise brand power by associating the drink's appearance with these activities.

Europe Energy Drink Market Competitor Analysis

The European energy drinks market is a highly competitive market with the presence of various small and large regional and global players. Major players involved in the region's production and distribution of energy drinks are making strategic innovations to attract consumers with new flavour formulations. They also focused on product innovations with vitamin-loaded drinks, gaining immense interest among consumers. Major players in the market are Red Bull, Monster, Lucozade, PepsiCo, and Dr Pepper Snapple.

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• The market estimate (ME) sheet in Excel format
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