In 2016 the global energy drinks market was valued at USD 43 billion. The
industry is expected to witness a high growth on account of increasing
consumer’s health consciousness and hectic lifestyle. These beverages know
to give instant energy along with providing mental and physical stimulation.
The main ingredient, which helps in providing stimuli, is caffeine. Taurine is
another major component, which is essential for cardiovascular function and
skeletal muscle development.
On account of increasing health awareness and busy lifestyle coupled with
growing consumer awareness regarding the health benefits of the product are
steering the demand for energy drinks in North America. Almost 60% of the
male and 40% of the female population in the US is addicted to these beverages
and it is further expected to boost the regional market. U.S. energy drinks
market revenue by product type, 2014 – 2025 (USD Billion) U.S. energy
drinks Market To learn more about this report, request a free sample copy
Energy beverages consumption has turned into a status symbol, especially for
the youth. Such consumer behavior type is expected to drive further the
overall demand. Consumption of alcohol mixed with these energy beverages
is quite popular in urban areas. Moreover, some of the regular party goers
prefer mild alcoholic beverages; this has led to high demand for alcoholic
energy drinks which contain an average of around 2% to 5% of alcohol by
volume especially in the mature economies such as UK, Australia, the U.S.,
and Spain. Energy drink manufacturers claim that these beverages reduce
muscle fatigue, ease the mental process and protect heart health. However, a
scientific consensus is yet to be achieved to support these statements.
Increasing health consciousness along with changing consumer lifestyle and
rising awareness of health wellness products are the key factors
expected to steer future demand.
These drinks have formed an integral part of social gatherings, parties, and
celebrations. Substitute’s availability is anticipated to provide a significant
threat to global industry growth. Energy drinks face stiff competition from
aerated beverages, malted health drinks, and packaged & cold-pressed fruit
These substitutes are low in cost as compared to some of the energy products.
There has been rising concern over these beverages consumption on account
of the caffeine presence. Excess use has been associated with health risks,
which include sleeplessness, frequent urination, and abnormal heart rhythms.
Such health risks associated are expected to restrain global industry demand
over the forecast period.
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Product Insights -The alcoholic segment was worth USD 22.34 billion in
2016 and is anticipated to grow at a CAGR of 6% from 2016 to 2025. These
alcoholic energy drinks rapidly gained popularity among the party-goers over
the past decade. Also, the lack of knowledge about the choice of drinks is
expected to drive the market of alcoholic energy drinks.
The non-alcoholic segment is projected to witness high consumption growth
rates and overtake the alcoholic sector to emerge as the largest segment by
next five years. Growing awareness among the consumers about its benefits
and the ill effects of consumption of its counterparts are projected to aid the
Product Type Insights
The non-organic segment is expected to remain the largest product variant
and is anticipated to account for revenue USD 35.34 billion by 2025. Due to
high initial market penetration and no specific focus on the target market,
these products are projected to aid the market. At the same time, lack of
customer awareness about the choice of products and these happen to be
cheaper than their counterparts.
The organic segment is expected to emerge as the fastest product type
segment in 2015. The growing consumer trend towards the importance of
organic food and beverages in their dietary habits has positively influenced
the segment demand in the industry.
The organic and natural energy drinks market will increase in countries such
as Germany, China, India, and UK, owing to increasing stringent regulations
in the region. Low-sugar energy beverages provide great opportunities to the
industry participants in the near future.
Target Consumer Insights
The adults were the largest and fastest target consumer segment and are expected
to grow at a CAGR of 7.4% from 2016 to 2025. There is a growing
population of athletes and corporate, who consumes these products for an
extra shot of energy to increase their performance. This is expected to aid the
growth of these products in the future.
The teenager consumer category has been projected to observe moderate
growth and penetration in the global market and the consumption of energy
drinks by teenagers happen to be a status symbol for the population, which
will increase market growth over the estimated year.
Distribution Channel Insight
Energy drinks demand in the on-trade sector dominated the global industry on
account of well-established marketing channels and long-term collaborations
with the sellers. Moreover, it is easily approachable to consumers in places
like such as bars, coffee shops, hotels, etc.
Global energy drinks market share by distribution channel (%) Global energy
drinks Market To learn more about this report, request a free sample copy
The off-trade sector is expected to witness sluggish growth over the forecast
period owing to shifting consumer preference towards direct selling and
stringent norms regarding collaborations with supermarkets and other retail
outlets. The segment is predominantly characterized by free in-store sampling
and bulk discounts requiring additional investments for advertisements and
The Asia Pacific held the highest regional demand where young adult population
mostly drives the market. India and China have shown significant growth in
the retail sector, which shows ample opportunities for marketing the product
in the region. The rising popularity of sports in China has a huge potential for
promoting their brand and create a sense of recognition and loyalty among
The population in Thailand considers energy drinks as functional, in the
sense that it helps them stay awake and work harder. Sponsoring sports
events and competitions from key players and marketing of these beverages
under the pretext of music festivals are expected to continue from the key
players end to capture mass sales.
North America energy drinks market has generated the largest turnover
over the past several years. It was valued at USD 15.44 billion in 2016 and is
expected to grow at a CAGR of 7.1% from 2016 to 2025. Due to rapid
urbanization, many people live a very hectic lifestyle in the U.S. This has
resulted in an increased dependence on energy drinks to boost them with an
instant drive. Also, these drinks are marketed as a healthier alternative to
carbonated beverages, especially for health-conscious people.
Middle East and Latin America are emerging markets that are expected to
grow at an increasing rate as a result of increased marketing efforts by the
major market players.
The major players operating in the global energy drinks industry include
Red Bull GmbH, PepsiCo. Inc, Monster Energy, Rock star, Inc., Taisho
Pharmaceutical Co. Ltd, Amway Global (Xs Energy), and Coco-Cola
Company. Competitive pricing, product improvements and sponsoring
sporting events are the major strategies of companies.
Manufacturers concentrate on product innovation to gain first-mover
advantage. Companies have been continuously trying to differentiate their
products from the competitors to penetrate the existing market. Red Bull
separates its products with the help of taurine and positions itself as a
premium product by selling at a high price. Moreover, companies such as Red
Bull and Monster have penetrated the industry to a great extent by sponsoring
premium sports events such as Moto GP, Formula One, Motocross, and