Energy Drinks Market Size, Share, Industry, Forecast and outlook (2023-2030)

Global Energy Drinks Market is segmented By Type (Hypertonic, Hypotonic, Isotonic), By Ingredients (Aqua/water, Additives (Sweeteners, Polysaccharides, and Oligosaccharides, Flavours, Acidulants, Others)), By Packaging (Can, Bottle, Others), By Sales Channel (Modern Grocery Retailers (Discounters, Convenience stores, Supermarkets/Hypermarkets, Traditional Grocery Retailers, others), Traditional Grocery Retailers (Independent Grocery Retailers, Food Services /Sports Nutrition chain, others), Non-Grocery Specialists), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Size, Share Outlook, and Opportunity Analysis, 2023-2030

Energy Drinks Market Overview

The Global Energy Drinks Market reached US$ 91.4 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 166.6 billion by 2030. The market is growing at a CAGR of 7.8% during the forecast period 2023-2030.

Energy drinks, also known as energy beverages or energy-boosting drinks, are formulated with performance-enhancing ingredients to promote mental alertness and provide a boost of energy. Brands are focusing on creating energy drinks that are low in sugar, free from artificial additives and enriched with natural ingredients such as vitamins, minerals and adaptogens which drives the energy drinks market size. The nutritional values of energy drinks can vary depending on the brand and specific product.

Most energy drinks typically contain caffeine, with levels ranging from around 80 milligrams to over 300 milligrams per serving which further drives the energy drinks market revenue. Other common ingredients include sugar or artificial sweeteners, B vitamins, taurine, amino acids like L-carnitine and herbal extracts like guarana or ginseng. Additionally, some energy drinks may contain high levels of carbohydrates, calories and electrolytes.

Energy Drinks Market Scope

Energy Drinks Market Dynamics

Consumers Increasingly Prefer Low Sugar or Sugar-Free Beverages

Due to the high prevalence of diabetes and other chronic illnesses, individuals are increasingly recognizing the significance of maintaining a healthy diet and an active lifestyle. Consequently, they are opting for dietary patterns in food and beverages that are low in calories, low in sugar or completely sugar-free.

 These are driven by growing health concerns and efforts to prevent lifestyle-related ailments. Consumers show a preference for natural sweeteners like stevia in their beverages. Major companies such as PepsiCo Inc. and Coca-Cola have pledged to remove artificial additives and reduce sugar content in their products.

For instance, on May 15, 2023, Javo Beverage launched “All-Natural Functional Energy Lemonades”. Javo introduced a line of energy lemonades that not only fulfill the demand for functional beverages with an energy boost but also offer the additional advantage of enhanced mental focus. With a serving size of 12 ounces, each drink provides 100 mg of natural caffeine and 100 mg of natural L-theanine.

The High Caffeine Content Limits the Consumption of Energy Drinks

The consumption of energy drinks is limited due to the high caffeine content they contain. Excessive intake of caffeine can lead to various health concerns, including increased heart rate, elevated blood pressure, insomnia and jitteriness. Individuals with underlying health conditions, such as heart problems or caffeine sensitivity, are particularly advised to exercise caution when consuming energy drinks. It is important to moderate consumption and be mindful of one's caffeine tolerance to avoid potential adverse effects on health and well-being.

Energy Drinks Market Segment Analysis

The global energy drinks market is segmented based on type, ingredients, packaging, distribution channel and region.

Cans Segment Accounts for the Highest Share in the Global Energy Drinks Market

The cans segment dominated the market with a majority revenue share of over 50% in 2022 and is projected to maintain its leadership throughout the forecast period. As consumers become more discerning in their preferences and tastes, they are increasingly choosing beverages packaged in cans over alternatives like canned wine and other alcoholic drinks.

Metal cans are particularly favored by younger consumers due to their portability and durability compared to glass containers. The impact of the COVID-19 pandemic, which led to the closure of bars, pubs and restaurants, has further fueled the demand for beverages in cans and this trend is expected to continue in the foreseeable future. For instance, on March 1, 2022, Starbucks launched  BAYA Energy – the coffee chain's first-ever line of energy drinks in cans.

Source: DataM Intelligence Analysis (2023)

Geographical Penetration

North America is the Dominating Region During the Forecast Period.

By region, the global energy drinks market is segmented into North America, South America, Europe, Asia-Pacific, Middle-east and Africa.

With a revenue share of over 32.18% in 2022, North America emerged as the leading market for energy drinks. This growth can be attributed to various factors, including the rise in disposable income among consumers, the emergence of domestic energy drink brands and increased marketing and promotional efforts to drive product growth.

The changing demographics and evolving tastes and drinking habits of North American consumers have contributed to their higher consumption of energy drinks compared to other geographic markets worldwide.

For instance, on  February  7, 2022, PepsiCo and Starbucks partnered and launched energy drinks in the US. The 12-ounce ready-to-drink cans of liquid energy will come in three fruity flavors: Pineapple Passionfruit, Raspberry Lime and Mango Guava.

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Source: DataM Intelligence Analysis (2023)

Competitive Landscape

The major global players include Arizona Beverage Company, PepsiCo, Coca-cola, Dr. Pepper Snapple Group, Extreme Drinks Co, Living Essentials, Monster Beverage Corporation, Mountain Fuel Co, National Beverage Corp and Otsuka Holdings.

Covid Impact

The COVID-19 pandemic had a mixed impact on the energy drinks industry. Initially, the industry faced challenges due to the closure of bars, restaurants and entertainment venues, limiting consumption in those settings. Supply chain disruptions and logistical issues also posed obstacles.

However, with more people working from home, there was an increased demand for energy drinks as a way to stay alert and productive. Additionally, heightened health and wellness concerns during the pandemic led some consumers to seek energy drinks with added functional benefits. The long-term effects on the industry will depend on factors such as the duration of the pandemic and evolving consumer behaviors.

By Type

• Hypertonic
• Hypotonic
• Isotonic

By Ingredients

• Aqua/Water
• Additives
  • Sweeteners
  • Polysaccharides and Oligosaccharides
  • Flavours
  • Acidulants
  • Others

By Packaging

• Can
• Bottle (Pet/Glass)
• Others

By Distribution Channels

• Supermarkets/Hypermarkets
• Online Retail Stores
• Convenience Stores
• Specialty Stores
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On December 28, 2022, WOX Energy Drinks launched its First Energy Drink in India for Summer Boost. The Classic Black energy drink features a vibrant and invigorating golden yellow color, offering a rapid and rejuvenating pick-me-up. It serves as an ideal option for a range of occasions, including parties, sports gatherings and outdoor activities like hiking, swimming and cycling.
• On January 26, 2022, Starbucks launched exciting options to energize its customers: a collection of energy drinks known as Starbucks Baya Energy, along with a variety of fresh flavors available in the grocery aisle.
• On February 3, 2022, PepsiCo launched hemp seed-infused energy drinks. According to the company, Rockstar Unplugged, a 12-ounce can of energy drink, is infused with hemp seed oil, B vitamins and contains 80 mg of caffeine, which is approximately half the amount found in other Rockstar energy drinks.

Why Purchase the Report?

• To visualize the global energy drinks market segmentation based on type, ingredients, packaging, distribution channel and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of energy drinks market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global energy drinks market report would provide approximately 77 tables, 82 figures and 195 Pages.

Target Audience 2023

• Manufacturers / Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies