Energy Drink Market Valued USD84.99 Billion by 2026

Growing preference for caffeine-based drinks, increasing disposable income of consumers, and rising health consciousness among consumers are driving the growth of energy drinks globally.

According to TechSci Research report, “Global Energy Drink Market By Product Type (Non-Organic Drink, Organic Drink), By Target Customers (Adults, Teenagers, Geriatric Population), By Distributional Channel (Store-Based, Non-Store Based) By Region Competition, Forecast & Opportunities, 2026, global energy drink market is forecast to grow at a rate of over 7.24% to reach USD84.99 billion by 2026. The market growth is stimulated by various factors such as growing urbanization, increasing disposable income of consumers which in result increases the purchasing power of consumer. The demand for energy drinks in the projected period is likely to register good growth owing to increase in population and need for a refreshing drink to remove fatigue among the people. People today are occupied in their busy schedule and have hectic schedules; in such cases an energy drink plays a great role in boosting their energy. Energy drinks contain caffeine, taurine, glucuronolactone, B vitamins, guarana, ginseng, ginkgo biloba, l-carnitine, sugars, antioxidants, and trace minerals to fill the gap of all missing essentials in a human body.

Consumption of energy drinks has been increasing dramatically in the past few years, particularly amongst adults and teenagers. The main reason behind the increasing demand for energy drinks is that they are aggressively marketed with the claim that these products give an energy boost to improve physical and cognitive performance, which attracts a large chunk of customers for the product. Energy drinks are designed to give an “energy boost” to the consumer by a combination of stimulants and energy boosters. The major constituent in most energy drinks is caffeine. They usually contain 80–150 mg of caffeine per 8 ounces, which is equivalent to 5 ounces of coffee or two 12-ounce cans of caffeinated soda. The market is expected to witness a significant growth in the forecast period due an increase in the number of working population and growing demand for caffeine, vitamins added drinks to enhance energy for people those who are working or people those who are associated with sports, because sports activities require a lot of energy and human body’s energy is quickly consumed in performing any physical activity or conducting sports activity. A huge demand of energy drink is seen among the sportsmen as it acts as a stimulant to enhance their performance. However, there are some restraints in the market such as several adverse health effects related to energy drinks. This has raised the question of whether these beverages are safe to consume or not. Despite this, manufacturers of energy drinks claim that these products are suitable for consumers and are safe. In fact, the adverse health effects associated with energy drink remains controversial among scientists.

The global energy drink market is segmented based on product type, target customers, distributional channel, and region. In terms of product type, the market is segregated into non-organic, organic energy drink. Out of these, the non-organic energy drink segment registered a market share of 72.57% in 2020, non-organic energy drink is dominating the market as it is cost friendly but organic energy drink segment is the fastest growing because of health concerns. The target customers segment is split up into adults, teenagers, and geriatric population where the adult’s segment is dominant due to high demand of energy boosters because of their busy schedule whereas, the teenagers segment is the fastest growing owing to high demand of flavored drinks. The distribution channel segment is divided in store-based and non-store based, where store-based channel dominantly holds the market.

In terms of regional analysis, North America is dominant, due to high per capita income and higher spending of people on lifestyle. The North America region has a market share of 32.57% in 2020, the dominating country is United States owing to great demand for energy drinks. Asia-Pacific is the fastest-growing region among the global energy drink market and the region is projected to grow at a CAGR of 6.70%, in value terms from 2021 to 2026. In this region, the dominating country is China and the fastest growing country is India due to growing number of population and increasing disposable income of consumers.

“Growing fitness concern is stimulating the growth of organic energy drinks market.  Customer demand is highly increasing because companies are coming up with innovative ideas of bringing fresh fruit extract in the form of energy drinks.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

TechSci Research performed both primary as well as exhaustive secondary research for this study. Initially, TechSci Research sourced a list of manufacturers across the globe. Subsequently, TechSci Research conducted primary research surveys with the identified companies. While interviewing, the respondents were also enquired about their competitors. Through this technique, TechSci Research was able to include the manufacturers which could not be identified due to the limitations of secondary research. TechSci Research analyzed the manufacturers and presence of all major players across the globe.

TechSci Research calculated the market size of the global energy drink market using a top-down approach in the overall market, bottom-up approach in the regional market, wherein data for various segments was recorded and forecast for the future years. TechSci Research sourced these values from the industry experts and company representatives and externally validated them through analyzing historical data of these product types and other segments for getting an appropriate, overall market size. Various secondary sources such as company websites, news articles, press releases, company annual reports, investor presentations, and financial reports were also studied by TechSci Research.

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