Sep 08, 2017

Energy Drinks Market: Demand for Organic Drinks Growing Faster than Non-Organic Variants

by Team Fact.MR

Increasing demand for energy drinks among athletes continues to be a key driving factor for the global market; however, high caffeine content continues to remain a key impediment. According to a recently published report by Fact.MR, the global market of energy drinks is projected to represent more than US$ 37,000 Mn by 2022-end.

Factors Fuelling Growth of the Global Market

The global energy drinks market continues to grow on account of a host of macroeconomic and microeconomic factors. Consumption of energy drinks is largely concentrated among athletes and sportspersons. Energy drinks remain a popular source of instant nourishment and refreshment and they have remained popular among consumers who indulge in strenuous activities.

According to Australian Institute of Sports Nutrition, the high content of carbohydrates in energy drinks helps athletes in recovering lost nutrients quickly. Energy drinks are high in ergogenic acid, which can help in revitalizing the body.

In addition to the ‘athletes’ demographic, demand for energy drinks is also significant in the healthcare sector. Energy drinks contain niacin, which helps in management of arthritis and low blood lipids. High content of pantothenic acid in energy drinks also helps in management of allergies, skin disorders, anxiety, and stress.

Although the outlook on energy drinks market remains positive, concerns about the potential side-effects of energy drinks have meant that more consumers are shifting to natural and organic drinks. There has been a significant shift in consumer behavior towards drinks that have been manufactured from natural ingredients. Changes in perceptions among consumers can lead to dip in global sales of energy drinks.

Alcoholic Energy Drinks to Represent a Leading Segment

Non-organic variants continue to remain sell more than organic energy drinks; however, demand for latter is growing at a faster pace, signalling an important shift in consumer preference. Currently, the non-organic energy drink type segment is valued at over US$ 7,000 Mn globally.

By product type, the alcoholic segment is projected to represent more than US$ 8,000 Mn in the global market of energy drinks by 2022-end. This segment is projected to reflect a relatively high CAGR in the global market through 2022.

Sales of energy drinks have remained concentrated through modern trade distribution channel. According to Fact.MR’s research, sales through this distribution channel will account for over US$ 5,000 Mn in sales by 2022-end. Online sales of energy drinks are also growing, as consumers browse the internet for best prices and discounts.

Market Players

Major players in the global market of energy drinks are Coco-Cola Co., PepsiCo Inc., Monster Beverages Corp., Red Bull GmbH, GNC Holdings Inc., Nestle SA, Abbott Nutrition Manufacturing Inc., GlaxoSmithKline plc, Dr Pepper Snapple Group Inc., GNC Holdings, Inc., PacificHealth Laboratories, Inc.