Sports Drink Market Size, Trend Analysis & Competition Tracking By Product Type (Isotonic, Hypertonic), By Consumption Type (Pre-exercise Sports Drinks (PRX), During Exercise, Sports Drinks, Recovery Drinks) and Global Review 2021-2031

Sports Drink Market Outlook

The Global sports drink market is constantly growing and is predicted to grow at around 5.3% CAGR through 2031, reaching a staggering value of US$ 25.5 billion by the end of the 2021-2031 forecast period. During exercise and recovery drinks will collectively generate 75% of the revenue in the sports drinks industry.

Consumption Analysis of Sports Drink from 2016-2020 Vs Market Outlook for 2021 to 2031

As per Fact.MR – a market research and competitive intelligence provider- during the historic period of 2016 to 2020, the market expanded at a CAGR of around 4%. 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 5.3% CAGR over the next ten years (2021-2031), and reach a valuation of over US$ 25 Bn.

Will Increased Inclination Towards Health and Fitness Drive Demand for Sports Drinks?

Growing awareness regarding the benefits of a healthy diet and exercise is prompting consumers to enroll in gymnasiums and health clubs. The rise in health-conscious population and increasing demand for natural and organic ingredients will boost the sales of sports drinks over the forecast period. To cater to the high protein and energy requirements of fitness enthusiasts, market players are researching towards creating new flavors for sports drinks using clean label ingredients. Earlier sports drinks used to have a high glycemic index and caused health issues.

To tackle these issues, market players are incorporating low-calorie sweeteners like erythritol and stevia in new sports drinks.  For instance, in March 2021, Coca-Cola Company launched a low-calorie variant of Dr. Pepper named ‘ZERO SUGAR’, to attract athletes and health enthusiasts. The products will be available in flavors of cherry and cream soda. Sports drinks manufacturers are also focusing on developing new flavor blends using the finest and organic ingredients to expand their consumer base.

In May 2021, PepsiCo Inc.’s Gatorade brand launched “Gatorlyte rapid rehydration”. This is available in exotic flavors like cherry lime, orange, and strawberry kiwi as is claimed to contain only 25% less added sugar than the original Gatorade. The product contains a blend of five electrolytes including sodium, potassium, calcium, chloride, and magnesium, and only contains 50 calories in 20-oz bottle.

How are Sponsorship Contracts for Sporting Events Bolstering Demand?

It is common knowledge that sports beverages manufacturers invest millions of dollars in securing sponsorship contracts with major sporting events. Evolving as a first rank marketing technique, sponsorship has emerged as the most effective mode of communication, permitting direct association of a brand and an event attractive to a certain segment of the audience.

Based on this aforementioned trends, sales of sports drinks have accelerated impressively in recent years. Players such as Red Bull have leveraged sponsorship activation, branded content and endorsements to establish a unique brand image which is rapidly taking over the sports industry.

Also, in 2019, Monster Energy Corporation signed sponsorship deals with eight Premier League Clubs across the English top-flight football. Likewise, in 2021, PepsiCo. Inc. struck a sponsorship deal with the National Collegiate Athletic Association’s Southwestern Athletic Conference (SWAC), spanning over 3 years, making it the primary sponsor for all football matches until 2023.

Region-Wise Analysis 

Why is North America an Opportunistic Market for Sports Drinks?

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$ 9.7 Bn by the end of 2031, accounting for 60% of global demand.

What are the Growth Prospects across Asia?

According to Fact.MR’s projections, Asia is projected to be a significant revenue contributor to the global market for sports drink through 2031. 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 55% until 2031.

Category-wise Insights

Why are Isotonic Sports Drinks Highly Popular?

Isotonic sports drinks will showcase impressive growth between 2021 and 2031. The segment is expected to account for more than 40% of revenue share on global revenues towards the end of 2021.

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.

Why the Increasing Preference for Recovery & Exercise Sports Drinks?

Towards the end of 2021, 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.

Competitive Landscape  

Key players involved in the market are rigorously investing in the development and launches of new products to gain a competitive advantage and expand their consumer base. Mergers & acquisitions along with diversification of product portfolios are key business strategies implemented by participants in the sports drink industry.

• In October 2020, Monster Energy launched a new sports focused drink titled Superfuel. This line of beverages are 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

• Product Type

  • Isotonic
  • Hypertonic
  • Hypotonic

• Consumption Type

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

• Distribution Channel

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