Global Energy Drinks Market - Forecasts from 2020 to 2025

The global energy drink market is projected to grow at a CAGR of 4.05% to reach US$25.067 billion by 2025, from US$19.754 billion in 2019. The rising number of athletes and sportsperson involved in high-octane sports are consuming energy drinks fortified with proteins and other recovery ingredients. The individuals involved in high-octane sports activities need a quick replenishment of their energy levels in order to maintain their strength and muscles and to boost the diminished energy levels, which is spurring the demand for energy drinks.

However, steps and measures being taken by the UK government in order to prevent the consumption of energy drinks by younger individuals as it poses threats to health and is a rising cause for health concerns is impacting the growth of the market.

The government of the UK launched a public consultation in order to make the sale of energy drinks illegal to children, so as to prevent them from harming their organs and getting involved in hospitalizations. This step is being taken as an increasing number of younger individuals are consuming the energy drinks products more than the recommended limit of 400 mg of caffeine per day, whereas some of the individuals are mixing the energy drinks with alcohol, which only intensifies, the effects. In addition, the ban is being supported by organizations and institutions such as the Children's Food Campaign (CFC), and the Royal College of Paediatrics and Child Health. Thus, this factor acts as a restraint in the market growth over the forecast periodProduct Offerings by Major Market Players in the Energy Drink Market Space

The offering of better and advanced varieties of Energy Drink with enhanced technologies such as quality and durability among other properties by existing and new players in different markets is estimated to lead to increased adoption and propel the market growth further over the forecast period.

Some of the examples of product offerings are as follows:

• Recently, in March 2020, PepsiCo, which is among the largest companies that are involved in the sale of different types of carbonated beverages, announced that it is foraying into the energy drink market by agreeing to acquire Rockstar Energy, which is another player, operating in the energy drink market. The deal is estimated to be worth $3.85 billion.
• The Coca-Cola Company, which among the largest company involved in the sale of carbonated beverages and a rival to the PepsiCo, announced that they are planning to launch an energy drink called the “Coca-Cola Energy Cherry” in order to cater to the increasing demand from the different consumers in the US in the North American Region. The energy drink is going to be available in the early part of 2020 and the Cherry flavor would particularly be available in the US. The energy drink cans would be available in 12oz cans and consist of 114mg of caffeine and guarana extracts and B-vitamins. In addition, the energy drink was first unveiled at the National Association of Convenience Stores (NACS) expo, which was held in Atlanta.
• In October 2019, ToroMatcha, one of the new players, in the market, is an energy drink startup based in Montreal has announced the launch of its new product called the Matcha based Energy Drinks. The energy drink products have been made using organic ingredients. The product has been made using oat milk, which has been infused with nitrogen. Two ranges of the products were launched in September and were made available in 355ml cans.
• In May 2019, Ag Barr, which is the company that is involved is operating in the soft-beverage segment, announced that it is planning to launch energy drinks in sugar-free and sugar variants, which will be available in the markets from next summer. The energy drinks will contain several essential ingredients such as 32mg of caffeine per 100ml and contain taurine, B vitamins in order to provide a good boost of energy.
• Recently, in February 2020, teaRIOT, which a company based in Venice, California, and is catering to the demand of energy drinks to the consumers, announced that they are launching the first plant-based energy drinks, that are made completely from plant ingredients. The new energy drinks are gaining popularity rapidly among the vegan consumers and the health-conscious consumers, who want to avid other added ingredients in the energy drinks.

The North American region to hold a considerable share over the forecast period and the Asia Pacific region is expected to witness a significant increase in its market share over the forecast period

The North American region is expected to hold a considerable amount of share over the forecast period owing to the fact there are market players such as PepsiCo involved in catering to the demands of the end-user by offering enhanced varieties and flavors of energy drinks to cater to the tastes of the consumers.

In addition, the Asia Pacific region is expected to witness a significant increase in its market share over the forecast period, which is attributable to the fact that there is an influx of investment in order to boost the development of the food and beverage sector in the countries such as India. Moreover, there are new players entering the energy drink market to appeal to the taste of younger consumers with healthy variants.

Sugar-Free Energy Drinks to witness a noteworthy growth

The increasing cases of obesity due to the high consumption of sugary drinks, owing to the sedentary lifestyles of a majority of the consumers, is making them aware about the ill-effects of consuming high amounts of sugar and is boosting the demand for sugar-free drinks is providing this segment with a platform to witness noteworthy growth over the forecast period.

Online Distribution Chains to be a significant share over the forecast period

Online ordering of different items such as beverages and other terms is the recent trend that has gained rapid traction and immense popularity among the younger and the middle-aged population in the last few years, this is majorly attributed to the fact that these products can be purchased at the lucrative discounts, with the convenience of ordering from homes. In addition, the penetration of e-retail and e-commerce channels re also contributing to the growth of this segment.

Segmentation:

By Product Type

• Carbonated
• Non-Carbonated
• Including Sugar
• Sugar-Free

By Alcohol Content

• Alcoholic
• Non-Alcoholic

By Packaging Type

• Can
• Bottle

By Distribution Channel

• Online
• Offline

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Others