Global Energy Drinks Market Report and Forecast 2024-2032

Global Energy Drinks Market Outlook

The global energy drinks market size was valued at USD 69.89 billion in 2023. The market is further projected to grow at a CAGR of 7.10% between 2024 and 2032, reaching a value of USD 129.54 billion by 2032.

Key Takeaways

Energy drinks are defined as beverages with a high concentration of added sugars, caffeine, and other additives. L-carnitine, taurine, and guarana are a few other stimulants that are legally permitted in energy drinks. They are frequently advertised for increasing energy levels, improving mental clarity, and enhancing physical performance. However, excessive intake of caffeine and added sugars can be harmful to one's health and should be avoided, particularly by young people, pregnant women, and other vulnerable populations.

Energy drinks have become a symbol of status, particularly for teenagers. It is expected that such consumer behaviour will lead to the higher demand for the product, thus, aiding the growth of the energy drinks market. The consumption of alcohol combined with these energy drinks is quite common in urban areas. In addition, some of the regular party goers prefer mild alcoholic beverages, resulting in high demand for alcoholic energy drinks containing an average of about 2% to 5% alcohol per volume, particularly in developed economies such as the United Kingdom, Australia, the United States, and Spain. Such favourable factors are propelling the energy drinks industry growth further.

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Key Trends and Developments

Increasing consumer demand for functional beverages, rising production of energy drinks with probiotics, and high dependence on caffeine beverages are propelling the demand for energy drinks

Global Energy Drinks Market Trends

The growing demand for plant-based energy drinks which are made with guarana, green tea, yerba mate, and coconut water, is predicted to have an impact on energy drinks market development in several ways. These drinks are gaining popularity among consumers who are concerned about their health, particularly millennials and Gen Z. This is because these drinks offer hydration, antioxidants, vitamins, and minerals without having the artificial additives and high sugar content of traditional energy drinks.

It is anticipated that the emergence of plant-based energy drinks will increase competition in the energy drink industry, pushing manufacturers to innovate new products in response to changing consumer demands. This could lead to increased investment in research and development of plant-based formulations and healthier energy drink options and can result in energy drinks market expansion.

Additionally, it is expected that the rise in personalised energy drink, such as Vibe, Mixfit, and Soylent will boost the market value since they are tailored to individual taste preferences, lifestyle, and health requirements. Due to this, a sizeable portion of consumers will be influenced by this trend when making purchases, which could influence the market share of energy drinks.

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Market Segmentation

Global Energy Drinks Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Organic energy drinks are expected to hold significant market share as they have more nutrients

In types of energy drinks, organic segment is projected to lead the energy drinks market share in the forecast period. Natural and organic ingredients are usually used to make organic energy drinks, which offer a healthier energy source without chemicals or artificial sweeteners. These beverages frequently include antioxidants and nutrients that strengthen the immune system, like vitamins, amino acids, and fruit extracts. Furthermore, organic energy drinks typically have fewer calories and might include better sources of caffeine, like extracts from green tea and coffee, which can give users a natural energy boost without the jitters that come with synthetic caffeine.

However, the energy drinks market report anticipates that the market share for non-organic energy drinks will expand because they don't contain premium ingredients, and thus, these drinks are frequently less expensive than their organic counterparts. Non-organic energy drinks  can provide you a quick energy boost when a person is feeling tired due to their caffeine content. Certain non-organic energy drinks might have extra minerals and vitamins, like taurine and B vitamins, and can support cognitive function and energy metabolism.

The off-trade distribution channel contributes significantly to market growth as it is the primary channel for purchasing energy drinks

The off-trade segment generates the highest energy drinks market revenue as it is the primary channel for purchasing energy drinks. The rise in energy drink consumption is the main factor behind the increase in product sales from off-trade distribution centres. Consumers generally make their purchasing decisions after physically inspecting the products, brands, and quality, which, in turn, propels product sales through off-trade channels, such as supermarkets. The majority of the players offer their product lines to these channels because a large consumer base prefers to shop from physical stores. Several well-known physical retailers in the United States that carry energy drinks include Target Brands, Inc., Walmart, Walgreens, and CVS Pharmacy.

As per energy drinks market analysis, the on-trade channel is expected to grow at a steady rate in the forecast period. The growth can be attributed to the expanding number of bars, pubs, resorts, cafés, restaurants, and clubs that are providing a wide variety of these beverages. Moreover, the hospitality industry offers alcoholic energy drinks with new flavours to cater to consumer’s demand for alcoholic beverages, which is driving the segment’s growth.

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Competitive Landscape

Market players are engaged in acquisitions for strategic growth and are introducing new energy drinks to cater to the ever-evolving beverage industry.

Other key players in the global energy drinks market report include Pepsico Inc., Celsius Holdings, Inc., Energy Beverages LLC, National Beverage Corp., Reign Beverage Company LLC, HELL ENERGY Magyarország Kft., and Arizona Beverage Co., among others.

Global Energy Drinks Market Analysis by Region

North America is one of the prominent regions due to its high dependency on caffeine beverages

The North American region holds a dominant position in the energy drinks market. With a strong presence of international players like Red Bull GmbH, The Coca-Cola Company, and Monster Beverage Corporation, the region accounts for more than half of the global energy drink market share. Because of the country's high demand for caffeine and rising energy drink consumption, the United States currently holds a dominant market share in North America. For instance, Red Bull was the top-selling energy drink in the United States in 2022, indicating a rise in market value and the rising popularity of energy drinks.

Meanwhile, the energy drinks market report states that the demand for energy drinks in the Asia Pacific region is growing due to the rising disposable income that allows consumers to spend more on such beverages. Energy drinks are popular among adolescents and adults because of the benefits they offer, such as alertness, endurance, and better performance. Energy drinks are a great way to meet the growing demand for quick and easily accessible energy sources due to the hectic lifestyles. The Asia Pacific energy drinks market growth has also been aided by the increase in demand for immunity-boosting products.

Key Highlights of the Report