The global energy drinks market size is expected to reach USD 177.58 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 8.3% from 2022 to 2030. Consumption of energy drinks has been increasing drastically in recent years, particularly among adolescents and young adults, as they remain one of the most popular functional beverages in the market that offer consumers more physical and mental energy, through ingredients such as caffeine, taurine, guarana, ginseng, and B vitamins.
Manufacturers recently shifted their target consumer focus from athletes to young people, which has been driving the product consumption. According to the National Library of Medicine, in the U.S., energy drinks are the second most common dietary supplement used by young people; about 30% consume energy drinks on a regular basis. Such trends are expected to drive the market demand.
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The drinks product segment accounted for the largest revenue share in 2021, as these drinks are designed to give an “energy boost” to the drinker by a combination of stimulants and energy boosters. Most of the brands on the market contain large amounts of glucose while some brands offer artificially sweetened versions. Other commonly used constituents in the product are taurine, methylxanthines, vitamin B, ginseng, guarana, yerba mate, acai, maltodextrin, inositol, and carnitine, creatine, glucuronolactone, and ginkgo Biloba.
The off-trade distribution channel segment is expected to witness lucrative growth during the forecast period, as off-trade channels form the primary segment for shopping for all kinds of beverages, thereby driving the sales through these channels. The wide availability of several versions of energy drinks such as conventional, organic, vegan, and premium at these stores encourages consumers to purchase them through this channel.
The market is highly competitive and dominated by large multinational manufacturing companies. The players face intense competition, especially from the top players in the market as they have a large consumer base, strong brand recognition, and vast distribution networks.
Energy Drinks Market Report Highlights
- North America held the largest revenue share in 2021 owing to the growing interest in the consumption of energy drinks in the U.S. Consumers are willing to pay more for functional and result-oriented premium quality energy drinks
- The organic type segment is expected to register a higher growth rate during the forecast period, as health-conscious consumers who focus on reducing their exposure to artificial chemicals and artificial sweeteners usually prefer organic energy drinks over the conventional ones
- The cans packaging segment held the largest revenue share in 2021 as they are lightweight and compact, which makes them a popular choice
Energy Drinks Market Segmentation
Grand View Research has segmented the global energy drinks market on the basis of product, type, packaging, distribution channel, and region:
Energy Drinks Product Outlook (Revenue, USD Million, 2017 – 2030)
- Drinks
- Shots
- Mixers
Energy Drinks Type Outlook (Revenue, USD Million, 2017 – 2030)
- Conventional
- Organic
Energy Drinks Packaging Outlook (Revenue, USD Million, 2017 – 2030)
- Cans
- Bottles
- Others
Energy Drinks Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
- On-trade
- Off-trade
Regional Insights
North America held the largest revenue share of over 30.0% in 2021. The growing consumption of the product in the region is also attributed to the increase in disposable income, the emergence of several domestic brands, and the rise in marketing and promotional activities for product growth. North Americans consume more energy drinks than any other geographic market in the world owing to the changing demographics and consumers’ tastes and drinking habits. The globalization of markets and the migration phenomenon contributed to the modification of drinking patterns of consumers who were gradually introduced into their drinking habits. This, in turn, has opened new opportunities for market players to incorporate a variety of drinks into their portfolios.
The Asia Pacific is likely to emerge as the fastest-growing regional market from 2022 to 2030. The market is expected to witness considerable growth in the economies of China, India, and Japan as a result of consumers’ willingness to experiment with new flavors and the high demand from immigrants residing in the country, displaying an interest in varied beverages. Product launches in the region in order to target and appeal to numerous consumers have been driving the product demand in the region.
List of Key Players in the Energy Drinks Market
- Red Bull
- Taisho Pharmaceutical Co. Ltd.
- Inc.
- Monster Energy
- Lucozade
- The Coco-Cola Company
- Amway
- AriZona Beverages USA
- Living Essentials LLC
- Xyience Energy
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