Energy Drinks Market Size, Share, Growth, Trends, and Forecast 2030

Energy Drinks Industry Prospective:

The global Energy Drinks market size was worth around USD 90.5 billion in 2022 and is predicted to grow to around USD 173.8 billion by 2030 with a compound annual growth rate (CAGR) of roughly 8.5% between 2023 and 2030.

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Energy Drinks Market: Overview

A drink designed to give a brief, transient energy boost both mentally and physically is called an energy drink. These beverages usually include a mix of components, including sugars or artificial sweeteners, vitamins, amino acids, and caffeine. Energy drinks are primarily used to relieve exhaustion, improve concentration, and encourage alertness. People who are looking to boost their energy levels frequently take them, especially while they are studying, working long hours, or exerting themselves. Energy drinks are becoming more and more popular across a range of consumer demographics, including professionals, students, and athletes who need a fast pick-me-up.

Key Insights

• As per the analysis shared by our research analyst, the global Energy Drinks market is estimated to grow annually at a CAGR of around 8.5% over the forecast period (2023-2030).
• In terms of revenue, the global Energy Drinks market size was valued at around USD 90.5 billion in 2022 and is projected to reach USD 173.8 billion, by 2030.
• The growing product launch is expected to drive the Energy Drinks market growth over the projected period.
• Based on the product, the drinks segment is expected to dominate the market growth over the projected period.
• Based on the type, the conventional segment is expected to capture a significant market share during the forecast period.
• Based on the packaging, the cans segment is expected to dominate the market over the forecast period.
• Based on region, North America is expected to hold a significant market share during the forecast period.

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Energy Drinks Market: Growth Drivers

A busy lifestyle and a need for quick energy drives market growth

Consumers' lives are now busier due to a variety of factors, including globalization, changing working and living patterns, and others. There is not enough time for them to finish all of their responsibilities. They must thus work harder to thrive in such a competitive environment. These energy drinks maintain mental and physical acuity since they are loaded with stimulants like caffeine and ginseng. Energy drinks include caffeine, which increases alertness and activity levels, which increases productivity overall. Electrolytes and certain vitamins, which are included in some energy drinks, might help correct imbalances that may occur following a strenuous workout or demanding workday. Therefore, over the projected period, factors like fast-paced lifestyle and the need for instant energy will fuel the expansion of the global energy drink market.

Energy Drinks Market: Restraints

Strong rivalry from inexpensive alternatives hampers market growth

Fruit juices, soft drinks, and other flavored drinks are inexpensive substitutes that provide an unyielding threat to energy drinks. They do include other energy-producing compounds like glucose, vitamins, and minerals, but not stimulants like ginseng, guarana, and others. These substitutes are quite popular and have been around for a lot longer than energy drinks. Additionally, since caffeinated drinks like coffee and tea are already widely used, sellers of energy drinks have to foster in customers a unique perception of their products. Consequently, during the projection period, the expansion of the energy drink market would be hindered by stiff competition from inexpensive substitutes.

Energy Drinks Market: Opportunities

Growing product launches offer a lucrative opportunity

The growing product launches are expected to offer a potential opportunity for the energy drinks industry over the projected timeframe. For instance, in June 2023, a portfolio firm of well-known beverage brands, Splash Beverage Group, Inc., announced the official debut of TapouT Cognitive Energy, a brand-new sparkling beverage with 10 calories that comes in three flavor options: orange, peach mango, and cherry lemonade. The product, created by TapouT ambassador and former NFL player Drew Brees in partnership with performance nutritionist Sanjeev Javia, combines special components to improve mental clarity, attention, and cognitive function while offering a clean, long-lasting energy boost. Without any added sugar or artificial coloring, TapouT Cognitive Energy offers a harmonious blend of effervescent taste, antioxidants, and natural caffeine.

Energy Drinks Market: Challenges

Health concerns pose a major challenge to market growth

According to the International Food Information Council's Food and Health Survey, 73% of participants actively try to reduce or stay away from sugar. Since sugar and caffeine are the main ingredients in energy drinks, marketers can expect some resistance when trying to generate demand. Increased caffeine content would make the beverages more bitter, which would not aid in the lowering of sugar content. Sales of sugar-free energy drinks and healthy non-alcoholic beverages have been increasing in the market. However, using cane or beet sugar as a component satisfies a crucial demand coefficient, impeding the medium- and long-term expansion of the industry.  

Energy Drinks Market: Segmentation

The global Energy Drinks industry is segmented based on the product, type, packaging, distribution channel and region.

Based on the product, the global Energy Drinks market is bifurcated into drinks, shots and mixers. The drinks segment is expected to dominate the market growth over the projected period. Drinks are preferred by consumers above other options because they satisfy the need for immediate hydration and provide important nutrients for the body's proper operation. Furthermore, as drinks are more varied, they have a wider customer base. Because these drinks are useful, consumers are free to consume them during leisure activities, after working out, and at work, which fuels demand for the product. On the other hand, the mixers segment is expected to grow at a rapid pace during the forecast period. The product's increasing accessibility as a mixer has been propelling the market. Additionally, mixers are being chosen by customers to create upscale cocktails and alcoholic beverages. To draw in new customers, several manufacturers have also begun taking chances with novel mixer tastes. It has been shown that combining alcohol in moderation with caffeinated mixers, such as cola or energy drinks, reduces the deleterious effects of alcohol use and results in far less severe outcomes than when alcohol is consumed on its own.

Based on the type, the global Energy Drinks industry is bifurcated into conventional and organic. The conventional segment is expected to capture a significant market share during the forecast period due to a lack of consumer knowledge regarding organic products. The advantages of functional beverages derived from organic ingredients are not well known to consumers, since the organic business is still in its infancy. Additionally, because conventional beverages include different components than their organic equivalents, they are usually less expensive. Since conventional beverages provide a higher margin per square inch of shelf space than organic drinks, retailers often choose conventional drinks.

Based on the packaging, the global Energy Drinks market is bifurcated into cans, bottles and others. The cans segment is expected to dominate the market over the forecast period. These drinks are becoming more and more popular among consumers who are becoming more discriminating in their tastes and selections, replacing canned wine and other alcoholic beverages. Because metal cans are more portable and do not shatter like glass, young customers like them. Due to the closure of bars, pubs, and restaurants due to the coronavirus pandemic, there has been a large increase in demand for the product in cans, and this trend is anticipated to continue during the projection period. There is a growing market for functional energy drinks, many of which come in cans. Consequently, the manufacturers have launched more products in this format in an attempt to capture this market.

Based on the distribution channel, the global Energy Drinks industry is bifurcated into on-trade and off-trade.

Energy Drinks Market: Report Scope

Regional Analysis

North America is expected to hold a significant market share during the forecast period

North America is expected to hold a significant market share during the forecast period. The rise in marketing and promotional efforts for product growth, the creation of several domestic brands, and the increase in disposable income are all contributing factors to the product's expanding consumption in the region. Due to shifting customer preferences, tastes, and drinking habits, North America consumes more energy drinks than any other geographic market in the globe. The phenomena of migration and the globalization of markets have played a role in altering the drinking habits of consumers who were progressively included in their drinking routines. Consequently, this has created fresh chances for market participants to diversify their beverage offerings. Besides, the Asia Pacific is expected to grow at the highest CAGR during the forecast period. The economies of China, India, and Japan are anticipated to have significant expansion in the beverage industry due to the propensity of consumers to explore new flavors and the strong demand from immigrants who have shown an interest in a variety of beverages. The region's demand for products has been driven by new product launches that aim to appeal to a wide range of customers.

Energy Drinks Market: Competitive Analysis

The global Energy Drinks market is dominated by players like:

• Taisho Pharmaceutical Co. Ltd.
• Red Bull
• PepsiCo. Inc.
• Monster Energy
• Lucozade
• The Coco-Cola Company
• Amway
• AriZona Beverages USA
• Living Essentials LLC
• Xyience Energy

The global Energy Drinks market is segmented as follows:

By Product

• Drinks
• Shots
• Mixers

By Type

• Conventional
• Organic

By Packaging

• Cans
• Bottles
• Others

By Distribution Channel

• On-trade
• Off-trade

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa