22-Sep-2022 | Facts and Factors
According to Facts and Factors, the global energy drinks market size was worth around USD 46 billion in 2021 and is predicted to grow to around USD 108 billion by 2028 with a compound annual growth rate (CAGR) of roughly 8.15% between 2022 and 2028.
Energy drinks are manufactured to boost the consumer's alertness, energy, and concentration. With stimulants like caffeine acting as a major ingredient, energy drinks are known to directly impact the central nervous system (CNS) and enhance its cognitive abilities. The amount of caffeine in all the drinks differs and it is highly regulated by the food and drink regulatory authorities in respective regions. As per data from the Mayo Clinic, 400 milligrams of caffeine per day are safe to be consumed by an adult, which has received further confirmation from the European Food Safety Authority Panel. Although sugar and caffeine content in energy drinks are known to show their effects, there are still some concerns over the efficiency of the rest of the ingredients. Even though there is a significant lack of scientific information, generally energy drinks are marketed as muscle, strength, and endurance-increasing drinks. In recent times, these drinks are associated with multiple health concerns, and people suffering from medical conditions are recommended to not incorporate energy drinks into their regular diet, these beverages have found a strong consumer database amongst people from a sports background.
Browse the full “Energy Drinks Market Size, Share, Growth Analysis Report By End-Users (Teenagers, Adults, and Children), By Type (Non-Alcoholic, and Alcoholic), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2022 – 2028" report at https://www.fnfresearch.com/energy-drinks-market
During Covid-19, the global market cap increased significantly. For some brands, the market share during the pandemic increased whereas, for some companies, the share percentage remained unchanged thus avoiding major losses. This was majorly due to increased intake of energy drinks as a source of stimulant amongst the general population and strategies adopted by the manufacturers to aggressively market their products even during the peak of the virus infection.
The global energy drinks market is projected to grow owing to the emergence of multiple players in the international and domestic markets with constant ingredient and product innovation and beverages for all consumer segments. Over the years, manufacturers of energy drinks have marketed their products as drinks that can help individuals gain more energy and concentration in the current fast-paced world. The marketing strategies of the players are one of the key factors that contribute significantly to the global market size. Another factor leading to more revenue is the change in consumer eating habits toward incorporating food items that claim to provide instant energy and do not require long preparation time as compared to traditional energy sources. An increase in income capacity as well as the rise in disposable income is a major growth propellant since more people can now afford items even if it is in the higher price range.
The concerns over false marketing may impede the addition of new customers while emerging markets are expected to provide excellent growth opportunities. Nonetheless, the presence of unhealthy ingredients is anticipated challenge product claims.
The global energy drinks market is segmented based on type, end-users, and region.
Based on type, the global market is divided into non-alcoholic and alcoholic. Around 54% of the global market share was owned by the non-alcoholic segment since these drinks offer much better efficiency as compared to their counterparts. Alcoholic drinks are not consumed by various religious segments thus eliminating a huge section of end-consumers automatically.
Based on end-users, the global market segments are teenagers, adults, and children. The global market is currently led by the adults segment with more than 46% of the global market revenue in 2021. This is due to the use of energy drinks along with alcoholic beverages. For instance, Red Bull is highly preferred among adults to be mixed with other drinks. There are health concerns associated with such mixing of different drinks and is recommended to be not considered by people with medical conditions.
North America is projected to lead the global energy drinks market since the majority of the global market players are headquartered in the United States, which is the leading revenue generator in the regional market. The high CAGR is attributed to the increasing number of health-conscious people who are into physical recreational activities. Since energy drinks are promoted as performance-enhancing beverages, consumers of all age groups have grown accustomed to the consumption of energy drinks over time.
The global market may also witness high growth in Europe given the immense population that is into outdoor physical activities like cycling, swimming, and hiking. For instance, in Denmark, as per official data, more than 16% of all types of trips, including 25% of trips that are less than 3 miles, are covered by bike. The Netherlands is known to have the most cyclists in the world.
Growth in Asia-Pacific is expected to be driven by the growing population in countries like China, India, Japan, and others along with increased disposable income.
Report Scope
Report Attribute |
Details |
Market Size in 2021 |
USD 46 Billion |
Projected Market Size in 2028 |
USD 108 Billion |
CAGR Growth Rate |
8.15% CAGR |
Base Year |
2021 |
Forecast Years |
2022-2028 |
Key Market Players |
Arizona Beverage Company, Red Bull, Rockstar Inc., Dr Pepper Snapple, Cloud 9, and others., and others. |
Key Segment |
By End-Users, Type, and Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
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The global energy drinks market is home to players like Arizona Beverage Company, Red Bull, Rockstar Inc., Dr Pepper Snapple, Cloud 9, and others.
Recent Developments:
- In March 2019, Coca-Cola Company entered the energy drinks market with the launch of its first drink in the European market. The product called Coca-Cola Energy debuted in Hungary and Spain and is claimed to feature ingredients like Vitamin B, guarana extracts, and naturally derived caffeine
- In July 2020, Ninja Melk announced the successful launch of canned energy drinks in Europe
The global energy drinks market is segmented as follows:
By End-Users
- Teenagers
- Adults
- Children
By Type
By Region
- North America
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic Countries
- Benelux Union
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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