Sports Drink Market

Sports Drink Market Outlook (2022-2032)

The sports drink market reached a valuation of US$ 28.26 Billion in 2021 and is likely to register a Y-o-Y growth rate of 7.0% in 2022, closing at US$ 30.44 Billion. Furthermore, across the 2022-2032 period of assessment, growth is expected to accelerate at a whopping 7.7% CAGR, reaching US$ 63.91 Billion.

Report Attribute	Details
Anticipated Base Year Value (2021)	US$ 28.26 Billion
Expected Market Value (2022)	US$ 30.44 Billion
Projected Forecast Value (2032)	US$ 63.91 Billion
Global Growth Rate (2022-2032)	7.7% CAGR
Expected Growth Rate of North American Market (2022-2032)	7.4% CAGR
Anticipated Growth Rate of the South Asian Market (2022-2032)	7.3% CAGR
Prominent Sports Drink Players	The Coca-Cola Company Abbott Nutrition Monster Beverage Corp Suntory Beverage & Food Ltd. Red Bull GmbH Dr. Pepper Snapple Group Inc. GlaxoSmithKline Plc. GNC Holdings Inc. Pepsico Inc. PacificHealth Laboratories Inc. Nestlé S.A

As the world becomes fitter and healthier, food and beverage companies have made every effort to capitalize on the opportunity. This factor has greatly benefited the sports drink markets, which have adapted their products to meet the needs of their customers.

The growing vegan population around the world will be a factor in the plant-based sports and energy drinks market during the forecast period. Moreover, the growing athlete community and an increasing number of sportspersons in developing countries are a number of the factors driving the market.

In addition, a rising consumer inclination towards fitness and an increased number of fitness centers and health clubs are expected to fuel the market growth. Manufacturers specialize in expanding their product portfolio by innovating new flavors with added health benefits.

2017-2021 Revenue Analysis of Sports Drink Market vs. Growth Outlook 2022-2032

According to market research and competitive intelligence provider Fact.MR, the Sports Drink market experienced noteworthy growth, growing at a value CAGR of 3.5% from 2017 to 2021. The rise in the number of fitness enthusiasts and growing consumer inclination towards a healthy lifestyle are expected to be the key growth drivers.

During the COVID-19 pandemic, a dual effect was observed. During the peak of the pandemic crisis, the industry experienced contracting sales and narrowing profit margins, given the strict imposition of curbs and lockdowns.

Manufacturing units were shut down to contain spread of the virus. However, as the infection curves flattened, production largely retained pre-pandemic projections.

Moreover, people have become more health-conscious, striving to maintain physical fitness and engaging in sporting and exercise regimes, sustaining demand for energy boosting drinks. Considering these factors, the global sports drink market is slated to expand at around 7.7% CAGR over the next ten years (2022-2032), and reach a valuation of over US$ 25 Bn.

Key Market Drivers Influencing Sports Drink Industry Expansion

Rising Focus of Manufacturers to Introduce Organic Drinks to Accelerate the Market Growth

Various manufacturers are focusing more on innovations and launching organic drinks with different flavors, which will meet up the nutritional demand of consumers. This innovation will simultaneously help many companies to increase their revenues, which, in turn, would drive market growth.

For instance, in January 2020, a leading brand named Powerade came up with innovations to fuel and refuel athletes. Powerade has expanded its product portfolio with two new zero-sugar innovations that offer functional hydration solutions and packaging designs. It launched POWERADE ULTRA, which includes branched-chain amino acids (BCAAs), creatine, vitamins B12, B6, and B3, and +50% more ION4 electrolytes compared to the original POWERADE.

Increasing Inclination towards Physical Fitness to Foster Market Growth Prospects

The growing inclination of the millennial population towards physical and fitness-related activities, rising buying power, and willingness to pay for healthier alternatives are some of the major factors accelerating the demand for sports drinks. For instance, the data published by the International Health, Racquet & Sportsclub Association in October 2019 states that 76 percent of millennials are assessed to exercise at least once a week.

Additionally, this healthy drink provides several benefits, such as minimizing the risk of dehydration and electrolytes in a sports beverage, replaces sweat, and maintains the balance of electrolytes in the body. Therefore, increasing awareness regarding the health benefits offered by the product among consumers is likely to augment the sports drink market growth.

Key Challenges encountered by Sports Drink Market

Governments’ Strict Health Regulations to Impede the Market Prospects

Strict health regulations imposed by the government on sports and energy drinks, as well as rising awareness about the negative effects of these drinks on children, are expected to act as a restraint on the growth of the sports drink market over the forecast period.

Further, fake marketing by a few vendors, combined with negative media coverage, has the potential to challenge the growth of the sports drink market in the forthcoming years.

Presence of High Level of Sugar to Hamper the Market Prospects

The majority of the products available in the market contains a high level of sugar which can result in a negative impact on the health. Thus, this is acting as a restraining factor for the market growth. For instance, the average 20-ounce bottle packs of Gatorade sports drinks have 34 grams of sugar content.

Region-wise Analysis

How will the Growth of Sports Drink Market Escalate across North America?

People Becoming More Health Conscious to Enhance the Market Prospects

As per Fact.MR, the Sports Drink Market in North America is slated to flourish at a CAGR of 7.4% until 2032. According to Fact.MR, North America is likely to register the highest growth during the forecast period, majorly driven by the lifestyle of the people. Consumers in the region are becoming more concerned about their physical well-being, prompting them engage in sporting activities, thus stimulating demand for energy boosting fluids.

North America is likely to provide lucrative growth opportunities backed by the presence of leading market players such as The Coca-Cola Company, Monster Beverage Corp, Red Bull GmbH, Dr Pepper Snapple Group Inc., and PepsiCo Inc. in the U.S and Canada. The market's worth is projected to exceed US$ 10.5 Bn by the end of 2032, accounting for 60% of global demand.

How will South Asia Perform in the Global Sports Drink Industry Landscape?

Increase in Number of Fitness Centers in the South Asia to Boost the Market Growth

As per Fact.MR, the Sports Drink Market in the South Asia is slated to flourish at a CAGR of 7.3% until 2032. According to Fact.MR’s projections, South Asia is projected to be a significant revenue contributor to the global market for sports drink through 2032. The number of fitness centers across countries including India and China is increasing.

For instance, a study conducted by the Federation of Indian Chambers of Commerce & Industry (FICCI), in conjunction with other research organizations, concludes that there are 6 million active users in India spending US$ 350 to US$ 400 annually on an average on fitness services. This includes engaging in physically demanding activities, including sports.

Similarly, in China, across both urban and rural settings, 78.1% and 21.8% of residents are physically active. Also, a total of 37% of adults participate in sports and leisure-time physically exerting activities. Considering the aforementioned factors, Fact.MR projects the market across Asia to capture a revenue share worth 57% .

Country-wise Forecast CAGRs for the Sports Drink Market

Country	CAGR
North America	7.4%
South Asia	7.3%
Europe	7.2%
Middle East & Africa	7.3%
Oceania	7.0%

Category-wise Insights

Which is the Most Sought-after Product Type Category?

Isotonic Segment to Dominate the Sports Drink Market

According to projections published by Fact.MR, by product type, the isotonic segment is forecast to register a 7.5% value CAGR across the 2022-2032. Isotonic sports drinks will showcase impressive growth between 2021 and 2032.

The segment is expected to account for more than 54% revenue share on global revenues towards the end of 2022. Isotonic beverages are powerhouses of those natural nutrients lost through sweat during an exercise regime. Furthermore, isotonic solutions help prevent injuries related to exercising, as well as keep illnesses due to excessive fluid loss at bay.

Which Segment to Remain Dominant in the Consumption Type Category?

Recovering Sports Drink Segment to Enhance Growth Prospects

By consumption type category, the Recovering Sports Drink segment is anticipated to have the largest revenue share, which is expected to account a CAGR of over 7.4%.

Towards the end of 2022, recovery drinks and exercise sports drinks will collectively account for more than 3/4th of revenue share. Compared to during exercise sports drinks, recovery sports drinks will witness higher growth.

The need for instant rehydration post-workout is stimulating recovery sports drinks demand. Various market players are active across this beverage segment. For instance, ENHANCED RECOVERYTM is a new Omega-3 multi-nutritional smoothie, designed to give elite athletes rapid and complete recovery from training and competition.

The Start-Up Ecosystem: How key Players are opening Frontiers for Future Growth?

Sports Drink Market players such as Pi Nutrition, Cure Hydration, Buoy, Funk, The Naked Collective, Swirlit, Funk, CLEAN Cause, and KRa, among others, are adopting various marketing strategies such as new product launches, geographical expansion, merger and acquisitions, partnerships and collaboration to identify the interest of potential buyers and create a larger customer base. For instance,

• Started in 2018, the German startup Funk produces functional beverages that are rich in amino acids for sports enthusiasts, calorie counters, and vegans. The startup’s solution provides essential amino acids, B vitamins, and natural caffeine from guarana. The GMO-free beverage is sugar-free and contains L-glutamine to assist the muscle regeneration phase.
• Established in 2015, CLEAN Cause is a Sport Drinks Brand, which makes drinks for a better cause, and support individuals in pursuing recovery from alcohol and other drug addictions through the CLEAN brand’s recovery home scholarships. Coined "CLEAN Kickstarts" the recovery home initiative is intended to bridge the critical gap between addiction and early recovery, providing the opportunity to establish a recovery routine and find employment, all in a safe, supportive and structured environment. Scholarships are available anywhere in the U.S. where CLEAN is sold.
• Founded in 2015, KRã is an energy and sports drinks brand. Its products include different flavors such as beery, fruit punch, orange, and lemon. It claims that its products are organic, gluten free, caffeine free, and do not contain artificial ingredients or added sugar. Its products are sold online as well as through retailers. The company sells its majority of products in the US.

Sports Drink Market- Competitive Landscape

Prominent players in the Sports Drink Industry are taking advantage of the rapidly increasing demand for the Sports Drink in various applications. To further their outreach, players are relying on collaborations, partnerships and acquisitions with existing small, medium and large-scale vendors. Some prominent market developments are as follows:

• GoodSport and Energy Drinks, a Rosemont, Ill.-based startup, launched GoodSport, a 97 percent dairy sports drink, in 2021, with the goal of competing nationally against leading brands.
• In October 2020, Monster Energy launched a new sports focused drink titled Superfuel. This line of beverages is suitable for pre-workout power consumption, mid-session sip or post-workout pick up. It possesses electrolytes for general wellness and B3+B6 Vitamins to aid focus and exercise recovery.
• In January 2020, Coca-Cola announced the expansion of its sports drink portfolio- POWERADE is expanding its product platforms for the first time in over a decade with two new zero-sugar innovations that offer functional hydration solutions – plus a new packaging design – all to meet the fast-changing needs of sport drink consumers.

Key Segments Covered in the Sports Drink Industry Survey

• By Product Type :

  • Isotonic
  • Hypertonic
  • Hypotonic

• By Consumption Type :

  • Pre-exercise (PRX)
  • During Exercise
  • Recovery

• By Distribution Channel :

  • Modern Trade
  • Drug Stores
  • Convenience Store
  • E-Commerce
  • Other Retail Formats

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia 
  • South Asia 
  • Oceania 
  • Middle East Africa