The demand for energy drinks is increasing. There has been a sharp increase in the demand for coffee, dairy juice and other beverages as consumer’s stockpile on essential products to sustain them during quarantine period amidst the prevailing COVID-19 crisis.
Consumers prefer products that come from natural sources and are vegan, GMO-free, organic, and have other clean label attributes. Their focus on holistic living and wellness is a key factor driving the energy drinks market. Consumers are determined to mark more purposeful choices with their buying power, purchasing with intention of creating positive and valuable experiences, which is supporting the expansion of the market.
It has been found that the consumers are in favour of beverages that contain natural ingredients and added antioxidants, vitamins and minerals. In energy drinks, fruit concentrates are added which offer several health benefits. A rising awareness of this will fuel the demand for energy drinks in the coming years.
Manufacturers in the market are expected to focus more on their offerings and make them healthier due to increasing concern about sugar content among consumers. Besides this, innovation in flavour is enabling growth in the flavoured drinks category of the energy drinks market, says a report analyst.
Key takeaways from the energy drinks market study
- The energy drinks market is estimated to be valued US$ 203.6 Bn in 2020, registering a CAGR of 7 per cent between 2020 and 2030.
- Europe is forecast to account for the leading market share in the global energy drinks market in terms of value sales by 2030 owing to the ever rising consumption of healthy beverages in the Europe region.
- Demand for ready to drink energy drinks will rise in the coming years.
- Companies are focusing on augmenting their business presence in developing countries. They are focusing on geographical expansion. In addition to this, companies are entering into strategic alliances across the globe via acquisitions, mergers and partnerships.
Who is winning?
A few of the companies operating in the energy drinks market are Red Bull, Monster Beverage Corp., Kraft Foods, Nestlé, The Gatorade Company, PepsiCo, Suntory Holdings, Rockstar, Arizona Beverage Company, Sinebrychoff, HYPE Energy, Living Essentials, Zipfizz Corporation, Asia Brewery, Unique Beverage Company, Bomba USA, Vital Pharmaceuticals, NEALKO ORAVAN, spol. s r.o. (Black Hoarse), Xyience Energy Drink, Energy Beverages, and others.
Producers of energy drinks are regularly offering consumers with more innovative products including unique ingredients and flavours. Innovation in energy drinks is intended to meet the evolving consumer demand for healthier beverages without compromising on the taste, flavor, texture, and nutritional qualities of the product.
- In April 2019, PepsiCo launched PepsiCo’s Propel Vitamin Boost, which contains vitamins and electrolytes. The product contains daily recommended values of vitamin B3, B5, B6, C, and E. It is available in three flavors- peach mango, apple pear, and strawberry raspberry.
- In 2015, Unilever signed a partnership agreement with JD.com, China’s largest online direct sales company, which is expected to help the company to expand its presence in China through JD’s extensive online sales platform