Demand for Non-Alcoholic Energy Drinks to Surge at 7% Value CAGR: Fact.MR
Published : 22 Sep 2021 Industry: Food & Beverage
According to Fact.MR, global demand for energy drinks is expected to exceed US$ 35 Bn by 2021. In the long-run, the industry is expected to clock a CAGR of over 8% to reach US$ 76 Bn in 2031. An increase in health consciousness, changes in consumer lifestyle, and greater awareness of health and wellness products is primarily expected to drive future demand.
From 2016 to 2020, the energy drinks market experienced a steady growth curve, recording a CAGR of nearly 4% to be valued at over US$ 33 Bn. Prospects temporarily nosedived in H1 2020, as the COVID-19 pandemic disrupted supply chains and logistics, generating shortages. Eventually, this was offset as vaccination drives began, permitting easing of restrictions.
Manufacturers prioritize product innovation to gain a competitive advantage. Companies strive to differentiate their products from their competitors. For instance, Red Bull employs taurine to distinguish its products and positions itself as a premium item by charging a high price. Furthermore, Monster Beverage has made substantial inroads into the industry by sponsoring high-profile sports events such as Moto GP, Formula One, MotoCross, and mountain biking.
Key Takeaways from the Market Study
- Non-alcoholic energy drinks gaining ground, surging at 7% CAGR through 2031
- Preference for alcoholic beverages to remain, surpassing US$ 8 Bn by 2022
- By distribution channel, online platforms to gain momentum at 8% CAGR
- Non-organic variants top selling, valued at US$ 7 Bn currently
- U.S to experience a CAGR of 7.6% growth in the energy drinks domain
- China to account for 55% of energy beverage consumption globally
- India to register a robust 9% value CAGR across the forecast period
“Athletes and sportspeople are the primary consumers of energy drinks. Energy drinks continue to be a popular source of fast sustenance and refreshment, particularly among customers who engage in intense activities”, says a Fact.MR Analyst.
Key manufacturers priorities product innovation to gain a competitive advantage. Product launches may assist businesses in capitalizing on the enormous development potential in developing regions. Recent developments are as follows:
- In March 2021, PepsiCo Inc. announced the introduction of a new line of energy drinks titled Mtn Dew Rise Energy under its Mountain Dew product range, with assistance from NBA superstar LeBron James. Every 16-ounce will contain Vitamins A & C and zinc to support the immune system
- In January 2020, Coca Cola introduced its first energy drink called Coca-Cola Energy in the U.S, devoid of any soda under four flavors: Coca Cola Energy, Coca Cola Energy Zero Sugar, Coca Cola Energy Cherry and Coca Cola Energy Cherry Zero Sugar.
More Insights Available
Fact.MR, in its new report, offers an unbiased analysis of the global energy drinks market, analyzing historical demand from 2016-2020 and forecast statistics for 2021–2031.
The study reveals growth projections on the energy drinks market on the basis of product type (alcoholic energy drinks and non-alcoholic energy drinks), nature (organic and non-organic) and distribution channel (modern trade, drug stores, convenience store, e-commerce and other retail format) across seven major regions (North America, Latin America, Europe, East Asia, South Asia, Oceania and MEA).
Fact.MR’s Domain Knowledge in Food & Beverages
Our food and beverages consulting team guides organizations at each step of their business strategy by helping you understand how the latest influencers account for operational and strategic transformation in the food and beverages sector. Our expertise in recognizing the challenges and trends impacting the global food and beverages industry provides indispensable insights and support – encasing a strategic perspective that helps you identify critical issues and devise appropriate solutions.
For more information, refer to our market research report or contact the PR author.
Sr. Consultant – Food and Beverages