Energy Drinks Market Size is estimated to reach $86.5 billion by 2027 and it is poised to grow at a CAGR of 9.5% over the forecast period of 2022-2027. Energy drinks are a type of non-alcoholic beverage which contains compounds such as caffeine and sucralose to provide mental and physical stimulation. A healthy non-alcoholic beverage is often denoted as energy drinks without sucralose or the upcoming plant-based energy ingredient-based drink. The growing fitness regimens in various societies across age groups have curated a strong demand for such drinks in the market. Major brands such as Red Bull and Monster Energy have curated drinks based on rudimentary styles, which continue to hold a sizable market share across regions. Furthermore, the growth of generation Z in developing economies would continue to support the demand for Energy Drinks in the forecast period of 2022-2027.

Energy Drinks Market Drivers

A Rising Focus on Health and Fitness:

Consumer awareness pertinent to liquid calorie intake has risen, thereby, the demand for products that can offer advantages over traditional carbonated drinks is created. People are now more conscious about the ingredients of the drinks. It has raised the demand for plant-based energy ingredients which offer the right blend of taste and health, along with the emergence of nootropic energy drinks. As per Food Dive 2022 Survey, nearly 55% of global consumers are more likely to purchase food and beverage products if they had sustainability claims.

Growing Investments from Renowned Brands and Manufacturers to Reach Nuanced Demand and Markets:

Renowned brands such as Monster and Red Bull amongst many other brands in the competitive market are trying to find sustenance in a highly competitive and fragmented market by investing in ingredients and following market strategies to grow along the value chain. For example, Bioenergy Life Sciences debuted with Ribose - a healthy sugar substitute, with bioenergy ribose being about 60% as sweet as table sugar. Lastly, urbanization trends with growing disposable incomes across the developing regions would support the market demand. As per the UN, 68% of the world population would live in urban areas by 2050 as compared to 55% in 2018.

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Product Launch and Collaboration

In September 2022, Gatorade entered the energy drink category with its first caffeinated beverage - Fast Twitch. In January 2022, Starbucks launched energy drinks in partnership with PepsiCo to be sold in the U.S. from March 2022.

The Major Players In The Market Include

The major players in the energy drinks market include Monster beverage corp, Gatorade Company, Nestle S.A., PepsiCo, Coca-Cola, Red Bull GmbH, Carlsberg, Kraft Foods, Suntory Holdings and Shenzhen Eastroc Beverage Ltd.

Over the years, marketers have pushed energy drinks beyond the Gen-Z and Millennial population - to attract and hold the unreached market potential. Moreover, sustainability claims and the introduction of energy drinks without sucralose would provide opportunities.

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