Nutritional & Performance Drinks Market - Forecast(2023 - 2028)
Nutritional & Performance Drinks Market Overview
The nutritional & Performance Drinks Market size is estimated to reach $17.7 billion by 2027, growing at a CAGR of 9.5% during the forecast period 2022-2027. Nutritional & Performance drinks are generally described as energy drinks or sports drinks, or ready-to-drink beverages consumed by adults and teenagers for nutritional purposes. These are commonly used during and after exercise or any sort of training. Performance and Nutritional drinks also come in ready-to-drink forms, primarily prepared from the fruit. These ready-to-serve beverages are rich in carbohydrates and contain 0.3% of acid and 10% of each fruit juice and soluble solids. The carbs are broken down into blood sugar by the body, which is the foremost energy source for organs. Therefore, the primary purpose behind using performance drinks is to enhance the endurance of the body by restocking electrolytes and fluids that are lost during the workout. Proliferation in health awareness among people and the state-of-the-art practices used by firms to target their corresponding audience are factors set to drive the growth of the Nutritional & Performance Drinks Industry for the period 2022-2027.
The report: “Nutritional & Performance Drinks Market Forecast (2022-2027)”, by Industry ARC covers an in-depth analysis of the following segments of the Nutritional & Performance Drinks Market.
By Type: RTS (=ready to serve), Flavored water,
Juices, Electrolyte drinks, and Others.
By Application: Medical field, Sports, and Fitness.
By Distribution Channel: Supermarkets, Convenience Stores, Online platforms, and Retail stores.
By Geography: North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America) and Rest of World (the Middle East and Africa).
- The North American Nutritional & Performance Drinks Market's highest revenue share in 2021. However, Asia-Pacific is expected to offer lucrative growth opportunities over the forecast period owing to mergers and potential acquisitions being made by foreign entities to enlarge their global footprint.
- The augmenting trend of sports around the globe is a preeminent driver, driving the growth of the Nutritional & Performance Drinks Market. However, the addictive nature and a few health complications accompanied by such drinks reduce the market growth.
- Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Nutritional & Performance Drinks Market report.
Nutritional & Performance Drinks Market- Geography (%) for 2021.
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Nutritional & Performance Drinks Market Segment Analysis-By Application
The Nutritional & Performance Drinks Market, based on the application type, can be further segmented into the medical field, Sports, and Fitness. The sports segment held the largest share in 2021. The growth is owing to increasing sporting trends across the globe. With expanding trends, the sporting industry is expected to reach $600 billion by the year 2025. Furthermore, performance drinks enhance the overall performance of the players ascribing to their carbohydrate-rich nature.
Moreover, the sports segment is estimated to be the fastest-growing, with a CAGR of 10.2% over the forecast period 2022-2027. This growth is owing to accruing awareness and interest among children regarding sports activities, several campaigns linked with the promotion of benefits associated with games, and striking a balance between studies and games. The promotion of energy drinks by players and athletes results in a strong positioning of such drinks in peoples’ minds.
Nutritional & Performance Drinks Market Segment Analysis-By Distribution Channel
The Nutritional & Performance Drinks Market, based on distribution channel, can be further segmented into Supermarkets, Convenience Stores, Online platforms, and retail stores. The supermarkets segment held the largest share in 2021. The growth is owing to an increase in Supermarket/Hypermarkets outlets all over the works, especially in both developed and developing countries. According to a report, around 42,000 to 45,000 supermarket outlets will be present in the U.S. in 2021. The number has witnessed a slight increase of 0.6% compared to the year 2020.
On the other hand, supermarkets extend options for convenient and comfortable shopping, which saves consumers' time. Sweeping increase in urbanization, migration of people from pastoral to urban areas for a better lifestyle. Moreover, the supermarket segment is estimated to be the fastest-growing segment with a CAGR of 10.4% over the forecast period 2022-2027. This growth is owing to increasing mergers and acquisitions in the segment of retail businesses.
Nutritional & Performance Drinks Market Segment Analysis-By Geography
The Nutritional & Performance 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 held the largest share, with 38% of the overall market in 2021. The growth in this segment is owing to the factors such as the emerging image of the U.S. as a sports-promoting and loving country. The companies are adopting marketing strategies to attract and target audience by using modern techniques like digital marketing and celebrity endorsements. However, the Asia-Pacific segment is expected to offer lucrative growth opportunities over the forecast period 2022-2027. This growth is owing to rapid industrialization in Asian countries like India, Indonesia, China, Vietnam, etc., increasing western influence, especially on teenagers. Large investments by high-profile companies like Reliance, and Aditya Birla from India redefine the overall network of modern-day retail facilities across the country.
Nutritional & Performance Drinks Market Drivers
Growing health awareness is Anticipated to Boost Product Demand.
With increasing modernization, individuals’ attitude towards healthcare has been transformed completely. In modern-day society, people are much more health-conscious than used to be the case. Trends of going on the morning walk, and going to the gym have stimulated in recent years. According to a report, around 14% is 43-45 million people in the US and 4-5 million people in the United Kingdom have a gym membership. Therefore, the fitness industry has reached $35.4 billion in 2021. All these aforementioned factors are driving the progress of the performance drinks market. Furthermore, the overall prevalence of the geriatric population is on the rise, and with time the said population is not able to digest solid food or is unable to chew solid food; thereby- marketers can actively suggest functional and nutritional drinks to provide RDIs as per the proportion of need. However, it is critical to mention that marketers need to focus on product composition since more than two-thirds of the adult population have underlying health concerns.
Increasing activities of mergers and acquisitions are Expected to Boost Product Demand.
Widespread competition due to giant players such as PepsiCo, having a net worth of $227.7 billion as of December 2021, and Monster energy, with a massive $44.2 billion is adding to the growth of the nutritional & performance drinks market. On the other hand, soaring trends of mergers and acquisitions also have their fair share in its growth. PepsiCo has spent around $44.49 billion on mergers and acquisitions and has acquired 26 companies. As per a recent study, around 39% of Americans have renewed their interest in nutritional drinks by actively replacing breakfast. Following mergers and acquisitions around the globe is propelling the usage of nutritional & performance drinks.
Nutritional & Performance Drinks Market Challenges
Addiction and side effects of energy drinks are Anticipated to Hamper Market Growth.
Even though the nutritional & performance drinks market is growing on an unprecedented scale, few factors are anticipated to condense the growth of the respective market. These energy drinks are of addictive nature. On the other hand, due to excessive caffeine, numerous health complications like heart problems such as uneven bouncing of the heart, dehydration, restlessness, dental hitches, and obesity are rising. In a few cases, overuse of such drinks may lead to life-threatening conditions like kidney failure. Moreover, a single serving of sports drink can contain around 180 milligrams of caffeine, which is higher than double the maximum daily intake for children younger than age 12.
Nutritional & Performance Drinks Industry Outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Nutritional & Performance Drinks Market. Nutritional & Performance Drinks Market's top-10 key companies are-
- PepsiCo Inc.
- Monster energy
- Red Bull
- Abbott Nutrition
- Ajinomoto Company
- Coca-Cola Company
- Yakult Honsha
- Dr. Pepper Snapple Group
- Baxter International
- In January 2022, Green Concept launched the online availability of a new beverage line with pricing. The pre-launch presents the STAY CBD Hemp Sports Beverage Line. The product would be available for immediate purchase at $1 per bottle plus shipping. STAY is a premium hemp-infused sports drink that contains CBD, CBN, and CBG.
- In February 2021, Coco-Cola paid $5.6 billion to acquire the largest deal ever cracked the company. The former company acquired a 15% stake in 2018. The following acquisition will allow the former brand to offer more than just sugary soft drinks and expand its product line to juices, enhanced water, and sports drinks. Additionally, the company also took hold of the distribution networks.
- In June 2020, Acer, one of the leading PC brands in Taiwan told the reporters that they’ll transform their brand into a “lifestyle” brand. To fulfill that aim, they are launching a business division that will focus on selling energy and sports drinks. The product or the drink will be called – Predator Shots, and the series will be called “Predator.” The company's sole focus was also to cater to meet the gamer's demand.
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