Energy Drinks Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Energy Drinks Market size was estimated at USD 71,400 million in 2023 and is projected to reach USD 105,809.1 million in 2030 at a CAGR of 5.78 % during the forecast period 2024-2030.

The energy drinks market is a rapidly growing sector within the global beverage industry, driven by a demand for products that provide quick energy boosts, increased alertness, and enhanced physical performance. These drinks typically contain ingredients such as caffeine, taurine, sugar, and vitamins, designed to combat fatigue and improve focus. While energy drinks were once primarily targeted toward athletes and young adults, their appeal has broadened, with a wider demographic now seeking these products for convenience, mental stimulation, and overall energy enhancement, making the market highly dynamic and competitive.

The scope of the energy drinks market is vast, encompassing various product types, including traditional carbonated energy drinks, sugar-free alternatives, and functional beverages with added health benefits. Key players in the market include multinational corporations and emerging brands focusing on product innovation, marketing, and distribution to capture consumer attention. Geographically, the market is expanding rapidly in regions like North America, Europe, and Asia-Pacific, with significant growth expected in developing countries where urbanization and disposable incomes are on the rise. E-commerce platforms are increasingly becoming a critical channel for sales, alongside traditional retail outlets.

Trends in the energy drinks market include a shift toward healthier, lower-sugar, and organic options as consumers become more health-conscious. There is also a rising demand for functional energy drinks that offer additional benefits, such as hydration, vitamins, or mental clarity. In addition, the trend of "clean labelling," where brands highlight transparency in their ingredients and production processes, is gaining traction. Energy drinks with natural ingredients like green tea extract, coconut water, and plant-based caffeine are becoming more popular, reflecting the growing consumer interest in wellness-oriented products.

Several drivers are contributing to the growth of the energy drinks market, including an increasingly busy and fast-paced lifestyle, which has led to higher consumption of quick, convenient energy sources. The rising awareness of mental health and fitness, especially among millennials and Gen Z consumers, is also boosting demand for products that claim to enhance mental clarity, concentration, and physical performance. Furthermore, strategic marketing by major brands and the continuous expansion of retail and distribution networks are key factors driving the market's expansion.

Delvens Industry Expert's Standpoint

Experts in the Energy Drinks Market highlight several key trends driving growth and innovation. The energy drinks market is growing rapidly, driven by rising demand for quick energy boosts and enhanced mental and physical performance, particularly among busy, health-conscious consumers. The market is expanding globally, with trends favouring lower-sugar, organic, and functional beverages that offer additional health benefits. The increasing popularity of e-commerce, along with the rising awareness of wellness and fitness, is fuelling this growth. Similarly, the baby food market is expanding due to increasing demand for safe, nutritious, and convenient feeding options for infants and young children. Trends such as organic, clean-label, and allergen-free products, alongside innovations in packaging and distribution through online platforms, are contributing to the market's rise. Both sectors are benefiting from changing consumer lifestyles, a shift toward healthier products, and technological advancements in distribution and marketing.

Market Portfolio

Key Findings

• The Energy Drinks Market, segmented by product type, includes drinks, shots, and mixers. In 2022, the drinks segment held a dominant market share of 74% in industry revenue. This preference for drinks is driven by their ability to provide instant hydration and essential nutrients that support the body’s functions. Additionally, energy drinks appeal to a wide consumer base due to the variety of options available. They are commonly consumed during work, exercise, or leisure activities, enhancing their demand. Typically, energy drinks are carbonated beverages formulated with caffeine, sugar, and other flavourings, often marketed as an alternative to coffee or other caffeinated drinks.

• The Energy Drinks Market is categorized by type into conventional and organic segments. In 2021, the conventional segment dominated the market, capturing over 81.4% of the revenue share. This trend is expected to persist throughout the forecast period. The conventional segment is likely to continue benefiting from limited consumer awareness of organic products. The organic segment is still in its early stages, and many consumers are not yet fully aware of the advantages offered by organic functional drinks.

• The global energy drinks market is segmented by packaging type into cans, bottles, and others. In 2023, the cans segment led the market, accounting for 53.7% of the revenue share, and is anticipated to retain its dominant position during the forecast period. Consumers are increasingly selective in their choices, preferring energy drinks in cans over other packaged beverages like canned wine and alcoholic drinks. Metal cans are particularly favoured by younger consumers due to their convenience and durability compared to glass packaging.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America region is projected to hold the largest market share. Factors such as Increasing demand for convenience, rising health consciousness, growing youth population, changing lifestyles, expanding distribution networks, product innovation, rising disposable income, increasing athletic and fitness trends, growing consumption in emerging markets, and marketing and brand visibility triggered the Energy Drinks Market in the region.

Regional Analysis

North America to Dominate the Market

• In 2023, North America held a significant share of around 39.7% in the global energy drinks market. The demand for energy drinks in this region is primarily driven by a fast-paced lifestyle and a growing focus on health and wellness. Consumers are increasingly looking for functional beverages that not only provide an energy boost but also offer additional health benefits. This trend has led to a surge in popularity for natural and organic energy drinks, as well as products enriched with vitamins and minerals. For example, Vive Organic offers energy and immunity shots made with ingredients like ashwagandha, ginseng, turmeric root, ginger root, lion’s mane, and green tea, catering to the health-conscious consumer.

• The energy drinks market in the Asia Pacific region is expected to grow at a CAGR of approximately 11.5% from 2024 to 2030. Rapid urbanization across several countries in the region has led to increasingly busy lifestyles, with many individuals turning to energy drinks for a quick boost to keep up with their daily routines. A 2022 study published in the Journal of Nutrition and Metabolism found that the primary reason people consume energy drinks is to stay awake and alert. These beverages offer a convenient solution for those in need of an energy lift during work, study sessions, or social events. As more people shift toward urban living, the market in Asia Pacific is experiencing favourable conditions for growth.

Competitive Landscape

• Red Bull GmbH
• Taisho Pharmaceutical Holdings Co. Ltd.
• PepsiCo, Inc.
• Monster Beverage Corporation
• Suntory Holdings Limited
• The Coca-Cola Company
• Amway Corp
• AriZona Beverages USA
• Living Essentials Marketing, LLC
• Keurig Dr Pepper, Inc.

Recent Developments

• In April 2024, GURU Organic Energy Corp., a Canadian brand specializing in organic energy drinks, introduced a new Peach Mango Punch flavor in Canada. The launch is supported by a national marketing campaign, and the drink is designed to enhance focus and brain performance. It is low in calories, made with natural ingredients, and certified organic, free from sucralose and aspartame. The beverage contains caffeine and plant-based ingredients, with key components like L-theanine, monk fruit, and stevia, which contribute to its health benefits and natural sweetness.

• In February 2024, Red Bull GmbH unveiled its Summer Edition Curuba Elderflower drink, available in a 250ml can. This new flavor combines curuba and elderflower and is offered in various formats, including sugar-free options. With the launch of its 'Editions' range, Red Bull expanded its customer base by 50%, and introduced an 8x250ml mixed sugar-free multipack to cater to the increasing demand for healthier, sugar-free energy drink options.

• In January 2024, Celsius Holdings, Inc. expanded its product reach into Canada, the UK, and Ireland through strategic partnerships with PepsiCo, Inc. and Suntory Beverage & Food Great Britain and Ireland. PepsiCo became the exclusive distributor for Celsius in Canada, extending an agreement made in the U.S. in 2022. Suntory Beverage & Food Limited was selected for exclusive sales and distribution in the UK, Isle of Man, Channel Islands, and the Republic of Ireland, marking a significant expansion for the brand.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
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• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope