The health & fitness industry is on
a path of progress for a few years now, and much of that is attributable to the
growing awareness among consumers. Similar progress reflects on the sports and
energy drinks market, customer-base of which has expanded and is not limited to
just youth. The offerings of the cross-functional products, addition of natural
ingredients, and reduction of caffeine from sports and energy drinks by the
market players such as Red Bull and Monster are some of the factors that are enhancing
the industry. APAC sports and energy drinks market is highly benefitted by the
diversity of products that is helping players in expanding the customer base. Another
factor driving the APAC sports drink market is the burgeoning tournaments in
various sports and the marketing tactics used by the vendors in order to gain
traction from a wider range of customers. Furthermore, the health consciousness
is making people refrain from soft drinks and resort to energy drinks that are
healthier. The post-recession economic boom and the eventual GDP growth are
increasing the household disposable income of the working population in the
APAC countries, which is also creating significant prospects in the APAC Sports
& Energy Drinks Market that was evaluated at $4.3 billion as of 2018.
Additionally, the market size is going to expand at a healthy CAGR of 6.1% during
the forecast period 2019-2015.
Sports & Energy Drinks Market Forces & Growth Prospects for the
The increasing sports & energy drinks market size resonates with the import value in the parent industry. The following table demonstrates the import value of beverages, spirits, and vinegar in countries of APAC, which will provide an overview of the scope in the APAC sports & energy drinks market.
1 – Import of Beverages, Spirits, and Vinegar in Countries of APAC
Import Value –
Growth Rate in
Import value data source – International Trade Centre (ITC)
Despite health scrutiny by various organizations such as Food & Drugs Administration (FDA) that has been posing as a threat to the sports & energy drinks market players, the import value in the parent industry has been witnessing an upsurge in the APAC counties. A significant part of this import value is attributable to the import of sports & energy drinks, market of which has sustained growth for a gamut of reasons listed below –
· The Growing
Awareness About Health & Fitness Bolstering the APAC Sports Drinks Market –
In the age of Internet, there is a lot of information pertaining to health and fitness that are accessible to the global populace, and therefore, people are now aware of the necessity of fitness activities. Resultantly, there has been a discernible growth in the number people that are enrolling in health and fitness clubs. According to the findings by the International Health, Racquet & Sportsclub Association (IHRSA), 14 markets in the Asia Pacific health club industry attract 22 million members at more than 25,000 club. This evinces the growth of the health and fitness industry in APAC, which is expanding the customer base of APAC energy drinks market, because the fitness club members more often than not prefer energy drinks in order to gain instant energy. The growing awareness about health & fitness coupled with the increase in number of people joining health & fitness clubs is creating growth prospects in the APAC energy drinks market.
· The Rise In
Disposable Personal Income of the Population Increasing the APAC Sports &
Energy Drinks Market Prospects –
After the recession era which was during the first decade of 2000s, the countries in APAC have witnessed economic growth. This evidently resonates with the increasing GDPs of the countries. For instance, China and India’s GDPs grew by 6.600% and 6.982% respective in 2018 as compared to 2017, according to the World Bank. This economic growth is rising the household disposable income of the working population, which has made people attain higher purchasing power. Therefore, people are able to splurge on sports and energy drinks. Furthermore, the rise in disposable personal income is also playing a contributing factor in increasing the number of people that are enrolling in gymnasiums and health club, and it is directly impacting the APAC energy drinks market. The economic boom has also created a favorable pricing environment, which is supporting the APAC sports drinks market players.
· Expansion in the
Retail Distribution Channels Increasing the APAC Sports Drinks Market Size –
Previously, sports and energy drinks were available in a limited number of retail shops or supermarkets. The sports drinks market players are inclining their selling strategy with the current trends and have expanded that distribution centers to health clubs, gymnasium, hypermarkets, and other places wherein there is a possibility of prospective customers. Furthermore, there is a burgeoning popularity of mixing spirits and liquors with sports and energy drinks, and that’s the reason these drinks are gaining prominence in bars and restaurants. The expanded distribution channels have created significant opportunities for vendors to increase their APAC sports drinks market revenues. However, the retail stores still remain the key segment of the APAC sports & energy drinks market in terms of distribution channels, and it will witness growth at a CAGR of 6.75% through to 2025.
· Sports Events
& Tournaments and Marketing Strategy by the APAC Sports & Energy Drinks
Market Players –
The rise in mass participation sports events is quite evident in the increasing number of marathons in the countries of APAC, especially India. Furthermore, the sports tournaments have also increased, which is offering opportunities for the sports & energy drinks market players to advertise their products. The market players opt for sponsorships of these tournaments and events in order to gain traction from the target customers. For instance, Red Bull focuses on sponsorship of sports events. It has a marketing campaign and is the sponsor of sports events in windsurfing, snowboarding, freestyle motocross, Formula 1 racing, and others. Furthermore, the brand also sponsors music and cultural events, which also helps in enhancing the brand value. These sponsorships help the organization in brand positioning and subsequently, help in increasing their sports & energy drinks market revenues.
· Busy Life
Schedule Leading to the APAC Sports Drinks Market Growth –
Changing lifestyle of the current generation has expanded the customer-base of the APAC sports & energy drinks market players. Previously, the customer-base was limited to youth. Nowadays, people have busy life schedules and thus, they prefer to grab an instant energy booster during work. This is leading to an expansion of the APAC sports drinks market size.
· Latest Offerings
by Players Expanding the APAC Sports & Energy Drinks Market Size –
The sports drinks market players have been reinventing their strategies in order to cater to a large customer-base. Recent years have seen market players coming up with different flavors of energy drinks in order to attract customers with different preferences. For instance, Monster Energy offers a gamut of favors such as original, Lo-carb (blue), Assualt (Red), Khaos (Orange), Mixxxed (Purple), and others that are enticing a wider range of customers. Furthermore, the fact that people have become conscious about the amount of sugar and caffeine in soft drinks is working in the favor of sports drinks market. This is because sports drinks have less sugar and caffeine, and therefore, customers are refraining from soft drinks and resorting to sports drinks, which is again increasing the APAC sports drinks market revenues.
Sports & Energy Drinks Market: Competitive Landscape
The major APAC sports & energy drinks market players striving to expand their customer-base are PepsiCo, Inc., The Coca-Cola Company, Red Bull GmbH, Monster Beverage Corporation, Suntory Beverage & Food Limited, Goldwin Healthcare Private Limited, Asahi Soft Drinks Co., Ltd., F&N Foods Pte. Ltd., Osotspa Co., Ltd., and Abbott Nutrition Co.
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