Booster Beverage Market

Booster Beverage Market Outlook (2023-2033)

The global booster beverage market is set to enjoy a valuation of US$ 129.3 billion in 2023 and further expand at a CAGR of 3.6% to reach US$ 184.1 billion by the end of 2033. The pandemic amplified the consumption of booster beverages among generic consumers by more than 260% as against 47% among fitness enthusiasts.

Over the historical period 2018-2022, the market demonstrated gradual expansion at a compound annual growth rate of 2.9%. For a long period, tea and coffee were the most preferred refreshment beverages among the population since the availability of instant energy-providing beverages was fairly limited. Booster beverages, especially energy boosters, were more often consumed by athletes or active health enthusiasts only. However, the last few years have witnessed significant evolution of the booster beverage industry in light of extensive product offerings at an affordable cost by manufacturers.

Demand for booster beverages has increased in the past few years owing to their several advantages over traditional drinks. Different booster beverages functionally aid health by either boosting energy or immunity, or improvising skin, hair, or digestion. These applications are only diversifying further with innovative ingredients such as caffeine, stimulants, ginseng, pre/pro-bionics, vitamins, minerals, and many more. Additionally, the market is being driven by the increasing consumption of booster drinks among teenagers and young adults who are more health-conscious and fitness-obsessed.

In addition, the market will stage opportunity-driven growth during the forecast period owing to factors such as gradually increasing per capita disposable income of the population, increasing population density, availability of flavour-enriched ready-to-drink boosters, and a rise in health consciousness at individual levels.

Further, the availability of natural and organic ingredients has augmented booster drink sales through various claims from the manufacturer's end. Low-sugar or zero-sugar drinks are also gaining customers' attention.

• Increase in personal health awareness among the population and the incorporation of various nutritional contents in the products offered will substantially upswing the demand for booster drinks in the short-term period.
• Rise in per capita spending on food and beverages in developing geographies such as East Asia, South Asia, and Latin America will provide lucrative growth opportunities for market players. Additionally, the incorporation of innovative marketing strategies in these regions will attract customers' attention, resulting in exponential market growth.
• Sales of booster beverages are assessed to grow in the long-term period due to the increasing integration of plant-based raw ingredients such as matcha, cascara, and guaran in product offerings owing to their fruity taste and health benefits. The product market is predicted to depict Y-o-Y growth at 2.9% from 2029 to 2033.

Report Attributes	Details
Booster Beverage Market Size (2022A)	US$ 125 Billion
Estimated Market Value (2023E)	US$ 129.3 Billion
Forecasted Market Value (2033F)	US$ 184.1 Billion
Global Market Growth Rate (2023-2033)	~3.6% CAGR
North America Market Share (2022)	~ 28.3%
East Asia Market Growth Rate (2023-2033)	~ 5.1%
United States Market Growth Rate (2023-2033)	~ 4% CAGR
Market Share of Top 5 Companies	~37.3%
Key Companies Profiled	Red Bull Fyre Energy Drink Mutola Hindustan Uniliver Ltd. DSM Pepsi Co. The Coca-Cola Company Monster Energy National Beverage Corp. Arizona Beverage Company Dr. Pepper Snapple Cloud 9

Why is the Popularity of Booster Drinks Surging?

“Rising Consumer Preference for Low-Sugar and Sugar-Free Beverages”

Consumers are increasingly concerned about what they consume in the sense of the ingredients used in the manufacturing of consumed products. Fitness standards set by the widespread influence of social media have become universal goals. Also, with the prevailing number of diabetic patients across the globe, the population is gravitating towards a healthy life and following balanced diets. Hence, energy boosters and immunity boosters with low sugar or no sugar are getting increased preference pacing the overall market growth.

Simultaneously, the increased health consciousness is supporting the fortification of booster beverages with cholesterol cutters, taurine and other weight loss-aiding ingredients. These factors will ride the market to opportunistic growth in the forecast period.

“Innovative Product Offerings by Manufacturers”

Booster beverages such as energy drinks, skin- and hair-boosting drinks, and immunity-boosting drinks are getting popular among teenagers and young adults below the age of 35 years. Because of their ability to improve performance, endurance, and alertness, booster drinks are replacing coffee and tea in the aforementioned age group.

Additionally, innovations such as the inclusion of vegan and organic ingredients in manufacturing processes and the use of these claims will boost market growth in the anticipated period. For instance, Red Bull has added a new range, “Organics”, which includes organic booster beverages in their existing product portfolio. Moreover, adopting trendy and attractive product packaging and making them travel-friendly will offer lucrative growth to the market.

“Excess Consumption of Caffeine Invites Health Abnormalities”

Since booster drinks are commonly available in the market in a variety of flavours, people feel compelled to try every flavour of every brand to determine which ones they prefer. Additionally, energy boosters are more prevalent among youngsters than in other age groups. However, excessive consumption of these beverages can be harmful to one's health. Few booster beverages contain a lot of caffeine and preservatives, and over-consumption can lead to serious medical problems such as hyperacidity, hypertension, and an increase in heart rate.

Moreover, caffeine addiction is another side effect of a disproportionate intake of these beverages which can lead to insomnia, anxiety and dehydration. Hence, the growth of the booster beverage market may be dented due to the aforementioned adverse health effects.

Market share analysis of booster beverages based on type and region. Under the beverage type segment, energy boosters dominate with 47.4% market share in 2022.

Country-wise Insights

Will High Spending on Ready-to-Drink Beverages in the U.S. Drive Demand for Booster Beverages?

High consumption of caffeinated drinks in the U.S., such as coffee, has staged opportunities for the acceptance of alternative flavourful beverages. An average individual in the United States consumes a minimum of 3 cups of coffee per day. However, shifting preferences in the country from customary beverages to modern booster beverages has accelerated the demand for these drinks.

Additionally, the population has adopted booster beverages as alcohol mixers by replacing tonic water and sodas. Advanced e-Commerce shopping platforms have also boosted start-ups in the U.S. market.

Based on these factors, the U.S. market is expected to expand at a compound annual growth rate of 4% from 2023 to 2033.

Why is East Asia Expected to Be a Highly Lucrative Market for Energy Boosters?

East Asia, along with other developing regions, is expected to show rewarding growth during the forecast period. This is due to the rapid expansion of China and Japan in the target market.

Factors such as a continuous increase in the population pool and a rise in individual spending on snacks and refreshments have propelled market growth in these countries. Moreover, the adoption of immunity boosters, skin and hair boosters, and digestion boosters by the population to maintain an active lifestyle has positively favoured market growth.

Category-wise Insights

What Explains the High Demand for Energy Drinks across the World?

Under the beverage type segment, energy drinks are anticipated to dominate the global market and experience lucrative growth over the forecast period.

Energy drinks are substituting generic cold beverages and other carbonated drinks among the global population. Additionally, the growing popularity of these drinks among the younger generation is driving segment growth. It is anticipated that nearly 30% of the global population of 14 years or older consumes energy drinks regularly.

Will Pervasiveness of Liquid Form Support the Sales of Booster Beverages?

Around 75% of booster drinks are available in the form of liquid, which is packed by the manufacturers in bottles or metallic cans. Liquid booster drinks are more popular among the population owing to their easy availability at almost all purchasing channels and food outlets, ready to drink at any point in time, and convenience and portability.

As such, demand for liquid booster beverages is anticipated to grow at a CAGR of 3.5% in from 2023 to 2033.

Competitive landscape

Leading manufacturers of booster beverages are concentrating their efforts on implementing technologically advanced manufacturing processes that will maximise their product manufacturing output. Furthermore, market players are focusing on innovative marketing and sales strategies to draw customers' attention to their products. For example, market leaders are relying on celebrity or sports team endorsements to attract customers, and many are providing a first drink free as a strategy for increasing their customer base.

Furthermore, businesses are striving to provide more eco-safe packaging to support the world's long-term sustainable development goals. Furthermore, inorganic growth strategies such as partnerships, acquisitions, and mergers are assisting market leaders in expanding their product portfolios and maintaining a dominant market presence.

• In March 2021, Red Bull announced the launch of its new energy drink of dragon fruit flavour. The product was launched in a new packaging design of 12-ounce bottles.
• In January 2021, Monster Energy launched a new product portfolio, Monster Energy Ultra Family, Ulta Gold, which is sugar-free.
• In January 2020, the Coca-Cola Company introduced its first energy drink products Coca Cola Energy and Zero Sugar, Coca-Cola Energy Cherry, and Cherry Zero Sugar in the U.S.

Segmentation of Booster Beverage Industry Research

• By Beverage Type :

  • Energy Boosters
  • Immunity Boosters
  • Skin Boosters
  • Hair Boosters
  • Digestion Boosters
  • Others

• By Form :

  • Liquid
    • Carbonated
    • Non-Carbonated
      • Flavoured
      • Non-Flavoured
  • Powder

• By Packaging :

  • Bottles
  • Cans
  • Sachets/Packets

• By User :

  • Kids
  • Teenagers
  • Adults

• By Sales Channel :

  • Online Sales
    • Company Owned Websites
    • e-Commerce Platforms
  • Offline Sales
    • Direct Sales
    • Modern Trade Channels
    • Convenience Stores
    • Speciality Stores

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & ASEAN
  • Oceania
  • MEA