11 Oct 2018 –The global Energy Drinks Market size is expected to value at US$ 84.80 Billion by 2025. The energy drinks industry is subject to witness a substantial growth due to the rise in health consciousness, changing food preferences and hectic lifestyle. Energy drinks provide an instant energy alongside mental and physical stimulation. These factors are driving large consumers towards flavored energy drinks, leading to substantial market growth, in the recent years.
Energy drinks commonly consist of caffeine, which is vital in creating both mental and physical stimuli. Taurine is also majorly found in energy drinks, which is essential for cardiovascular function and skeletal muscle development. Globally, the energy drinks market is predicted to grow at CAGR of 7% in forecast period, providing numerous opportunities for market players to invest in research and development in the energy drinks industry. Factors such as increasing health consciousness, busy lifestyle and growing competition among industry players are spurring demand of the energy drinks in both developing and developed economies across the globe. Growing popularity of energy drinks among young population and aggressive marketing strategies adopted by market players to increase consumer base is expected to fuel market growth in the North American region over the forecast period.
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Increasing consummation of energy drinks for athletes is considered as one of the critical factors responsible for the sustained market growth, in the recent years. Energy drinks is increasingly becoming a status symbol for the youth, in today’s generation. Due to which robust growth is largely observed in the last couple of years. Increasing demand for energy drinks from urban areas are expected to favor market growth in upcoming years.
Furthermore, growing demand of the mild alcoholic beverages by mature economies coupled with increasing number of party goer’s are predicted to drive demand for the energy drinks in the upcoming years. Energy drinks that mostly contains alcohol around 2% to 5% by volume has witnessed increasing demand form developed economies such as U.K., Australia, the U.S., and France.
Energy drinks are widely known to reduce muscle fatigue, aids in the mental process, and heals to protect heart health. Such benefits are expected to drive more consumer towards energy drinks in the forecast period. However, lack actual scientific evidence to prove benefits of energy drinks claimed by manufactures and shifting trends towards organic food beverages are predicted to restrain market potential to certain extent over the forecast period. Yet, changing food preferences and increasing demand from sports industry are anticipated to boost market value for energy drinks in near future.
In addition, higher consummation of the energy drinks may cause health risks that includes loss of sleep, frequent urination, and unsynchronized heart rhythms. Such factors are estimated to limit market growth in the upcoming years. Although, lowered prices and substantial efforts made by private players to limit health risks associated with consummation of the energy drinks are expected to drive market growth over the forecast period. Caffeine is considered as one of the primes ingredient of the energy drink, which largely influential in regaining energy and increasing their stamina. Rise in the personal disposable income and hectic lifestyle are expected to drive the market growth over the forecast period.
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The energy drinks market is divided by region as North America, Europe, Asia-Pacific, Latin America and Africa. North America has shown major growth in recent years owing to the larger consumer base and existence of prominent industry players in the region. Asia-Pacific region is predicted to hold major market share in the energy drinks industry with massive growth in forecast period.
Countries such as India, China and Singapore are leading the Asia-Pacific’s market with substantial development of retail sector, growing popularity of sports, and significant investment by leading industry players considering potential growth opportunities in the region. The key players in the energy drinks market are Red Bull GmbH, PepsiCo, Inc., Monster Energy, Rockstar Incorporations, Taisho Pharmaceutical Ltd., Amway Global Co., and Coco Cola Company.
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