Energy Drinks Market by Types (Caffeinated Beverages & De-caffeinated Beverages), by Format ( Shots, Powder & RTD), by Flavours (Unflavoured & Flavoured), by Categories (Natural Energy Drink, Sports Drink, Non-alcoholic Beverages, Functional Beverages & Non-carbonated Drinks), by Nature (Organic & Conventional), by Distribution Channel (B2B & B2C), By Geography - Global Opportunity Analysis & Industry Forecast, 2022-2027

Report Code: FBR 0244 Report Format: PDF + Excel

Energy Drinks Market Overview

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 an energy drink without sucralose or the upcoming plant-based energy ingredient-based drink. Due to the growing fitness regimens in various societies across different 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. A spree of product launches critiquing environmental and societal backgrounds has allowed brands to grow reputation and sales and would continue to propel the Energy Drinks Industry in the forecast period of 2022-2027.

Energy Drinks Market Report Coverage

The report: “Energy Drinks Market Forecast (2022-2027)" by IndustryARC, covers an in-depth analysis of the following segments in the Energy Drinks Market.

by Types – Caffeinated Beverages and De-caffeinated Beverages.
by Format - Shots, Powder and RTD.
by Flavours - Unflavoured and Flavoured.
by Categories - Natural Energy Drink, Sports Drink, Non-alcoholic Beverages, Functional Beverages and Non-carbonated Drinks.
by Nature - Organic and Conventional.
by Distribution Channel - B2B and B2C.
by Geography: North America (the U.S., Canada and Mexico), Europe (Germany, the UK, France, Italy, Spain, Russia and the Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia & New Zealand and the Rest of Asia Pacific), South America (Brazil, Argentina, Chile, Colombia and the Rest of South America) and the Rest of the World (the Middle East and Africa).

Key Takeaways

  • Geographically, North America held an advanced share in 2021. It is owing to product strategy alignment by brands and manufacturers to elongate product offerings to satiate the health-conscious consumers. However, Asia-Pacific is expected to offer lucrative opportunities in the forecast period owing to the realignment of strategies and rising disposable income.
  • Rising demand for natural energy drinks with caffeine sourced from sustainable sources along with a shift to healthy non-alcoholic beverages has been a key market driver. However, health concerns related to the consumption of energy drinks hinder the market growth.
  • A detailed analysis of the strengths, weaknesses, opportunities and threats would be provided in the Energy Drinks Market Report.

Energy Drinks Market - Market Share (%) by region, 2021

Energy Drinks Market

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Energy Drinks Market Segment Analysis - by Type

Energy Drinks Market based on type can be further segmented into Caffeinated and Decaffeinated beverages. Caffeinated Beverages held a dominant market share in 2021. Caffeine is by far the most primitive and commonly used product in energy drinks owing to its stimulant nature to increase alertness and energy. Furthermore, label claims allow the category to hold a strong share. For example, leading brands promote energy drinks as functional drinks to boost energy and reduce daily stress, whilst improving concentrations to improve work efficiency. Owing to the following claims brand such as Red Bull and Monster continue to experience strong preference amongst the consumers. However, the de-caffeinated segment is estimated to be the fastest-growing, with a CAGR of 10.5% over the forecast period of 2022-2027. It is due to the various findings claiming the ill effects of caffeine on health. Caffeine causes restlessness, nausea and anxiety, amongst other potential side effects. As per NIMH, nearly 19.1% of U.S. adults have had an anxiety disorder in a year.

Energy Drinks Market Segment Analysis - by Distribution Channel

Energy Drinks Market based on distribution channels can be further segmented into B2B and B2C Channels. B2C held a dominant market share in 2021 and is estimated to be the fastest-growing segment with a CAGR of 10.9% over the forecast period of 2022-2027. It is due to the immense reach of energy drinks through various intermediaries of off-trade channels. Intermediaries such as Walmart or TARGET amongst many other small-and-convenience stores provide consumers the needed luxury to buy products at ease. Furthermore, the online-channel growth would continue to proliferate the B2C channel. As per the 2021 Social Media Users Guide, the energy drinks market would grow from a child-centric market to various other markets. 8% of people over 65 use Instagram, 35% of the same age group use Facebook and 58% use YouTube. Targeting consumers via these channels would proliferate the demand for B2C.

Energy Drinks Market Segment Analysis - by Geography

Energy Drinks Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America and the Rest of the World. North America dominated the market with a 31% share in 2021. It is owing to the rising consumption of caffeine-induced products such as coffee and energy drinks which have proliferated the market share. Energy drinks are an integral part of social gatherings, parties and celebrations in the United States. Manufacturers such as Red Bull and Monster Beverages are offering their energy drinks in multiple flavors and two major packagings. However, Asia-Pacific is expected to offer lucrative growth opportunities over the forecast period of 2022-2027. It is because of a substantial young population in the region, with sub-standard purchasing capacity. As per ILO.Org, India has the largest youth population, with nearly 66% of the population younger than 35 years.

Energy Drinks Market Drivers

A Rising Focus on health and Fitness:

Consumer awareness pertinent to liquid calorie intake has risen. This has led to the rising demand for products that can offer advantages over traditional carbonated drinks. Furthermore, the understanding of ingredients has improved among people, which 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. The market of Energy Drinks is driven by an extremely large consumer base, with fitness enthusiasts demanding products with controlled ingredients.

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

Renowned brands such as Monster, Red Bull and others 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 has introduced Ribose - a healthy sugar substitute, with bioenergy ribose being about 60% as sweet as table sugar. Furthermore, advances in caffeine development aid the market directly. Future-Chemicals offered caffeine sourced from whole-coffee cherry and deliver 70% natural caffeine and 5% antioxidant polyphenols. 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.

Energy Drinks Market Challenges

Health Concerns Pertinent to the Consumption of Energy Drinks:

As per the Food and Health Survey from the International Food Informational Council, 73% of the survey respondents are actively trying to limit or avoid sugars. Due to sugar and caffeine being the key ingredient in energy drinks, marketers face reasonable friction in creating demand. A higher caffeine level would make the drinks more bitter, which would not help in solving the problem of sugar reduction. The market has been seeing a rise in healthy non-alcoholic beverages and energy drinks without sucralose sales. However, a critical demand coefficient is fulfilled by utilizing beet or cane sugar as an ingredient, which impedes the market growth in the medium and long term.

Energy Drinks Industry Outlook

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Energy Drinks Industry. The top 10 companies in the Energy Drinks market are -

  1. Monster Beverage Corp
  2. Gatorade Company
  3. Nestle S.A.
  4. PepsiCo Inc.
  5. Coca-Cola
  6. Red Bull GmbH
  7. Carlsberg A/S
  8. Kraft Foods
  9. Suntory Holdings
  10. Shenzhen Eastroc Beverage Ltd

Recent Developments

  • In September 2022, Gatorade entered the energy drink category with its first caffeinated beverage - Fast Twitch. A 12-ounce bottle would contain 200mg of caffeine, electrolytes and B-Vitamins. The beverage was developed with NFL and Sport-performance Experts.
  • In February 2022, PepsiCo launched a hemp-based energy drink in the U.S., containing ingredients such as hemp oil, vitamin B, spearmint, lemon balm and caffeine.
  • In January 2022, Starbucks launched energy drinks in partnership with PepsiCo. The following product would be made available in various grocery stores, national retailers and convenience stores across the United States from March 2022.

Relevant Titles

Beverage Dispensers Market - Industry Analysis, Market Size, Share, Trends, Application Analysis and Forecast Analysis.

Report Code - FBR 0083

Ready to Drink Market - Industry Analysis, Market Size, Share, Trends, Application Analysis and Forecast Analysis.

Report Code - FBR 89681

Sports Food Market - Industry Analysis, Market Size, Share, Trends, Application Analysis and Forecast Analysis.

Report Code - FBR 33601

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1. Energy Drinks Market Overview
    1.1 Definitions and Scope
2. Energy Drinks Market - Executive Summary
3. Energy Drinks Market – Comparative Analysis
    3.1 Company Benchmarking - Key Companies
    3.2 Global Financial Analysis - Key Companies
    3.3 Market Share Analysis - Key Companies
    3.4 Patent Analysis - Global
    3.5 Pricing Analysis
4. Energy Drinks Market – Startup Company Scenario (Premium)
    4.1 Investment
    4.2 Revenue
    4.3 Venture Capital and Funding Scenario
5. Energy Drinks Market – Industry Market Entry Scenario Premium (Premium)
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing business index
    5.3 Case Studies of Successful Ventures
6. Energy Drinks Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter's five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Energy Drinks Market – Strategic Analysis
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Market Life Cycle Analysis
8. Energy Drinks Market - by Type 
    8.1 Caffeinated
    8.2 De-caffeinated
9. Energy Drinks Market - by Format 
    9.1 Shots
    9.2 Powder
    9.3 RTD
10. Energy Drinks Market - by Flavors 
    10.1 Unflavored
    10.2 Flavored
11. Energy Drinks Market - by Categories 
    11.1 Natural Energy Drink
    11.2 Sports Drink
    11.3 Non-alcoholic Beverage
    11.4 Functional Beverage
    11.5 Non-carbonated Drinks
12. Energy Drinks Market - by Distribution Channels
    12.1 Direct Sales (B2B)
    12.2 Indirect Sales (B2C)
        12.2.1 E-commerce Channels
        12.2.2 Specialty Stores
        12.2.3 Hypermarkets/Supermarkets
        12.2.4 Others
13.  Energy Drinks Market - by Nature 
    13.1 Organic
    13.2 Conventional
14. Energy Drinks Market - by Geography
    14.1 North America
        14.1.1 The US
        14.1.2 Canada
        14.1.3 Mexico
    14.2 Europe
        14.2.1 The UK
        14.2.2 Germany
        14.2.3 France
        14.2.4 Italy
        14.2.5 Spain
        14.2.6 Russia
        14.2.7 The Rest of Europe
    14.3 Asia-Pacific
        14.3.1 China
        14.3.2 India
        14.3.3 Japan
        14.3.4 South Korea
        14.3.5 Australia and New Zealand
        14.3.6 The Rest of Asia-Pacific
    14.4 South America
        14.4.1 Brazil
        14.4.2 Argentina
        14.4.3 Chile
        14.4.4 Colombia
        14.4.5 The Rest of South America
    14.5 The Rest of the World
        14.5.1 The Middle East
        14.5.2 Africa
15. Energy Drinks Market - Market Entropy
16. Energy Drinks Market – Industry/Segment Competition Landscape (Premium)
    16.1 Market Share Analysis
        16.1.1 Market Share by Region - Key Companies
        16.1.2 Market Share by Countries - Key Companies
    16.2 Best Practices for Companies
    16.3 Competition Matrix
17. Energy Drinks Market – Key Company List by Country Premium (Premium)
18. Energy Drinks Market - Company Analysis
    18.1 Company 1
    18.2 Company 2
    18.3 Company 3
    18.4 Company 4
    18.5 Company 5
    18.6 Company 6
    18.7 Company 7
    18.8 Company 8
    18.9 Company 9
    18.10 Company 10
* "Financials would be provided to private companies on a best-efforts basis.”
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