Global Energy & Sports Drink Market Research Report, 2028

A beverage with a high concentration of stimulants, such as caffeine, taurine, ginseng, guarana, and other substances, is referred to as an energy drink. It enhances both mental clarity and physical performance. Energy drinks can have or not have carbonation. On the other hand, sports drinks are used to rehydrate and restore electrolytes before, during, and after physical activity. Additionally, they differ from brewed tea and coffee, which have fewer components and can be decaffeinated. Manufacturers of energy drinks assert that their products increase energy. One of the primary factors driving the growth of the energy drink industry is their appeal, which offers immediate energy as well as mental and physical stimulation. Another crucial component, taurine, is necessary for the growth of skeletal muscle and cardiovascular health. These variables have a significant impact on the prediction for the global energy drink industry. In the near future, market expansion is anticipated to be fuelled by factors such changing consumer lifestyles, rising health consciousness, and increased awareness of health and wellness products. Additionally, a rise in popularity among young people is contributing to the expansion of the global market. On the other hand, a caffeine overdose can result in hypertension, nauseousness, restlessness, and other health issues, which restricts the growth of the energy drink industry. On the other hand, it is anticipated that during the anticipated time frame, a movement in consumer preferences towards beverage consumption and a healthy lifestyle would create lucrative opportunities for market expansion. Sports and energy drinks are a great source of carbs, vitamins, minerals, salt, potassium, magnesium, and amino acids, all of which help to give you more energy right away. They encourage hydration and assist in replacing electrolytes lost when engaging in physical activity. They are currently offered in both carbonated and non-carbonated forms, with a variety of flavours, including strawberry, cranberry, lime, apple, and pineapple. Sales of sports and energy drinks are also rising as people become more aware of the importance of rehydrating quickly following a strenuous workout. The market for these items is also being driven by increased consumer spending on lifestyle and fitness activities, which is providing producers with lucrative growth potential. Leading producers are also introducing fresh iterations of energy drinks with natural components like organic guarana and raw green coffee bean extract. Additionally, they are concentrating on introducing premium varieties with appealing packaging and customised flavour. According to the research report, "Global Energy & Sport Drink Market Research Report, 2023–28," published by Actual Market Research, the market is anticipated to cross USD 123.71 Billion, increasing from USD 87.67 Billion in 2022. The market is expected to grow at a CAGR of 6.01% by 2023–2028. Due to long and unpredictable work hours, the demand for energy drinks is growing among the working population as well, which is assisting the market's expansion. Thus, regular consumption of energy drinks is assisting industry expansion. Sports and energy drink sales are growing in popularity among urban consumers as a result of variables like increased income levels, urbanisation, and accessibility in bars. The middle-aged population's desire for lower calorie and low carbohydrate intake is boosting the market for sports and energy beverages. Outdoor activities have lost ground to video games and e-sports in recent years, particularly during lockdowns. This is expected to increase demand for sports and energy drinks by giving the intended audience more attention and mental clarity. The need for clean-label, nutritious products among Gen-Z consumers are helping the market grow as a result of ingredient advancements made by sports and energy drink producers. Opportunities for the sports and energy drink industries are being created by expanding consumer spending and health and organic product awareness. It is projected that further innovation in the flavour and components of sports and energy beverages would favourably affect market growth. With the addition of chemical-free, natural products, the market for sports and energy drinks is anticipated to grow as consumers become more aware of what is in their beverage. The market expansion of sports and energy drinks is being boosted by the surge in the usage of natural ingredients in a health-conscious society. The industry is expanding thanks to the addition of substances like green tea, ginseng, and pomegranate juice to sports and energy drinks, which has increased the amount of antioxidants and polyphenols in the drinks and made them healthier.

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Industry expansion is predicted to be fuelled by the use of all-natural components, vitamin and mineral fortification, natural ingredients, no-added colour formulas, and fruit-based products. Youth fitness pursuits like sports and yoga are credited with fostering a rise in health consciousness that supports market expansion. In the upcoming years, it is anticipated that the market would expand due to the addition of substances that boost endurance and develop muscle. Due to consumer demand for sugar-free products, high fructose corn syrup is being replaced by sucrose and fructose, which results in a slower release of energy. Additionally, the appeal of plant-based protein sources among young adults is anticipated to support the market expansion of sports and energy beverages. Opportunities for market expansion are being created by a change in manufacturing practises that uses soy protein, pea protein, and rice protein as their main constituents, among other sources. However, dietary supplements and food supplements have evolved to be more practical. Consumer trends that emphasise protein, wellness, natural products, and "free from" foods have a big impact on the area. As a result, market participants are vying for supremacy and releasing new items. For instance, in order to continue to compete with PepsiCo Inc., The Coca-Cola firm announced in November 2021 that it had fully acquired the New York-based energy drink firm Bodyarmor. The benefits of sports drinks, which replenish energy and hydrate the body after or before any workout or sporting activity, are known to consumers. Ageing consumers seeking vitality, millennials open to trying new products with wellness advantages, and busy consumers seeking practical health solutions are the consumer categories driving the market expansion. According to the report, the global market is segmented into five major regions including North America, Europe, Asia-Pacific, South America and Middle East & Africa. Among them, North America held the largest share of about 35% in terms of revenue. The growth in this regional market is owing to the growing trend of athleticism and rising concerns over health. The recent changes in consumer lifestyle have resulted in the need for a healthy diet, which is likely to augment the business growth in this area. The sports drinks market is a way of life driven market. The expanding worries about physical prosperity and driving a reliable way of life is a significant development driver for the sports drink market. North America remains on top of provincial deals followed by Europe. Be that as it may, the expanding wellness pattern is finding different areas and driving deals numbers for the market. The Asia-Pacific sports drink market is relied upon to flood, inferable from an expanding level of urbanization and development in the quantity of health focuses over the nations, similar to India and China. The ascending user interest towards nutritious beverages is supposed to expand the sports drink market in the Asia Pacific, along with the use of no or less calories in the sugars utilized in the fitting of the sports drink by the producers in the national market. Increased number of athletes and the growing popularity of various exercise activities are fuelling the growth of the global energy drinks market. However, rising middle-class customers with changing lifestyles, particularly in emerging nations like China and India, are driving demand for naturally flavoured energy & sports drinks. Nowadays, brands are launching sugar-free and calorie-free energy drinks. These products address the need for healthier options, which can benefit athletes or consumers who are obese. Sugar-free varieties can also be valuable for consumers who are lactose intolerant. Energy beverages including soft drinks, carbonated beverages, fruit and vegetable juices, beverage concentrates, ready-to-drink tea, and ready-to-drink coffee are the most commonly consumed segments across the globe. Changing preferences, lifestyles, tastes, and continuous innovations in the product have bolstered the product demand. These drinks are considered to be one of the fastest-growing beverage segments globally and they maintained growth throughout the pandemic despite major shifts in the consumption of other products. Further, the demand for convenience and RTD format is driving the demand. Thus, major brands are strategically responding to consumer demands and the products are experiencing a wider reach. For instance, in September 2019, The Coca-Cola Company unveiled the first energy drink under the Coke brand alongside several other beverage innovations at the National Association of Convenience Stores (NACS) expo in Atlanta. The company launched- ‘Coca-Cola Energy Cherry’, available exclusively in the U.S. and its zero-calorie counterparts. Similarly, in March 2021, PepsiCo Inc. introduced a new line of energy drink - ‘Mtn Dew Rise Energy’, particularly targeted at morning consumers. The product contains coffee, vitamins A & C, antioxidants, and fruit juice. Further, it contains citicoline to boost mental clarity and zinc for immune support. The company made this strategic launch in order to move beyond its core soda line into functional beverages and energy drinks.

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On the other hand, increasing competition in sports, high-demand training, and exercise are fuelling the demand for Sports Drinks in the worldwide beverages market. Consumption of sports drinks helps athletes and sportspersons to take care of the nutritional balance in their bodies and enhance their performance. This also results in increasing demand for sports drinks containing vitamins, minerals, and protein. Some of the key factors that are expected to drive the market are the innovation of the latest flavours with added health benefits and changing lifestyle of consumers i.e., enrolment within the fitness and health clubs, and eating proper nutrient food, which gives them a balanced nutrient diet. With the rising health concerns, there’s an increased demand for nutrition-filled, low-calorie Sports Drinks made up of natural ingredients, like stevia and other sugar alternatives. For example, PepsiCo Inc., launched a zero-sugar variant of Gatorade named ‘G-Zero’, to attract health-conscious consumers. The products are going to be available in flavours, Lemon-Lime, Orange, and Glacier Cherry. In addition, the need for the drink is increasing at a rapid pace as they help to enhance performance, endurance and allow athletes to do vigorous exercises. Moreover, the surging athlete population and sports players in developing countries are one of the major factors that would propel the market growth during the forecast period. For instance, as per the data issued by the National Collegiate Athletic Association (NCAA), the number of NCAA athletes increases rapidly. In 2017-18, approximately 494,992 students participated in NCAA championship sports, which was an increase of more than 3,000 since 2016-17. The migration from rural to urban areas is causing a major population change, thereby impacting consumption patterns. Based on the sales channel, supermarket/hypermarket segment accounted for the largest revenue share of over 55% in 2022 and remains the primary source of consumption of the product. The increase in product sales is driven by the rise in the consumption of energy beverages. Consumers buy these products after physically examining the product quality, ingredients, and brands, which, in turn, drives product sales through off-trade channels. Most of the key players offer their full range of products through off-trade channels including supermarkets and hypermarkets as these stores have a high customer reach. Some of the popular brick-and-mortar stores selling the product are Walmart; Walgreens; CVS Pharmacy; Target Brands, Inc.; Kroger; and Safeway. The on-trade channel is expected to register a considerable growth rate from 2023 to 2028. An increasing number of bars, pubs, resorts, cafés, restaurants, and clubs are offering a wide range of these beverages, which is driving the segment. Such factors are expected to boost product sales and this trend is likely to continue in the upcoming years. However, the COVID-19 pandemic has affected the hospitality sector and the consumers’ drinking habits. The consumption of the product and functional beverages shifted from restaurants and bars to personal spaces, which has negatively influenced the consumption through the on-trade segment. Further, in 2022, the non-alcoholic segment accounted for the highest share in the market owing to the fact that non-alcoholic drinks boost the energy by improving physical and cognitive performance. In addition, presence of caffeine in non-alcoholic energy drinks provides the user with increased alertness, improved memory, and elevated mood. Furthermore, the growth is attributed to the fact that over the past few years, the non-alcoholic energy drinks segment has been transformed from being a niche product category to one of the most rapidly growing product categories in the global energy drinks market. Rise in popularity among teenagers and surge in health consciousness are anticipated to foster the growth of the non-alcoholic energy drinks segment during the forecast period. Based on the energy drink type, the conventional segment held the largest revenue share of over 90% in 2022 and is expected to maintain its lead over the forecast period. Lack of consumer awareness regarding organic products is expected to favor the growth of the conventional segment over the forecast period. The organic industry is still a fledgling industry, with a considerably lacking consumer awareness regarding the benefits of organically functional drinks. In addition, conventional drinks are typically cheaper than their organic counterparts owing to different ingredients. Retailers tend to prefer conventional over organic drinks for a greater margin per square inch of shelf space they offer. The organic segment is anticipated to expand at a higher CAGR over the forecast period as organic drinks are generally perceived to contain more nutrients and antioxidants than conventional ones. An increasing number of health-conscious consumers are gravitating toward organic products over conventional ones due to concerns over highly processed, artificial ingredients as well as the effects of pesticides and antibiotics. This scenario has been playing a vital role in driving the consumption of organic energy drinks. Further, by sports drink product type, the market is classified as isotonic, hypertonic, and hypotonic. They are termed based on the concentration of the drinks compared to the human body. Isotonic beverages contain an almost similar amount of sugar and salts in the human body, while hypertonic and hypotonic contain higher concentration and lower concentration, respectively. The isotonic product segment held the most substantial market share in 2022, which is anticipated to expand at a healthy CAGR over the projection period. Globally, the isotonic type is one of the leading segments in the market as it contains almost the same amount of sugar and salt as in the human body. Most of the products such as Powerade, Lucozade, and others fall into the isotonic category. Additionally, this type of drink is one of the preferred choices by athletes, especially by middle and long-distance runners and those involved in team sports. Hypotonic and hypertonic are also exhibiting a robust presence in the market as these beverages possess less concentration of electrolytes than the body, which let the solution to absorb quicker than isotonic drinks.

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According to the research, the bottles segment held the largest revenue share in 2022. Initially, the ready-to-drink concept was launched in a bottle package design and became popular worldwide. Aluminum shortage in countries such as the U.S. has led to the introduction of the product in glass bottles. Furthermore, the rise in awareness regarding water and land pollution caused by beverages packaged in plastic bottles has led to an increased demand for the product in glass bottles. The demand for the product in glass bottles is increasing owing to the convenience they offer and rising awareness among consumers regarding the adverse impact of plastic bottles on the environment. This has also led to the introduction of the product in glass bottles, which is expected to gain popularity and help increase product demand. However, the cans segment is expected to grow with more than 4% CAGR over the forecast period. Consumers have become more sophisticated with their choices and taste and are hence increasingly opting for these beverages over canned wine and other alcoholic drinks. Young consumers prefer metal cans as they are more portable and do not break like glass. With the coronavirus pandemic resulting in the shutting down of bars, pubs, and restaurants, the demand for the product in cans has significantly increased and is expected to continue over the forecast period. Several consumers are looking for functional energy beverages, many of which are available in cans. Recent Developments: • September 2022: Gatorade, a PepsiCo brand, launched a caffeinated energy drink, "Fast Switch," for athletes. The product is a cross between an energy drink and a sports drink. The product is non-carbonated, contains no sugar, and does not include any artificial colors or flavours. • August 2022: Limca, the Coca-Cola Company brand, launched its first-ever variant of the sports drink "Limca Sportz" in India. The sports drink is available in lemon and lime flavours. Limca Sportz is glucose, and electrolyte-based beverage sports enthusiast’s use for rehydration. • Coca-Cola has disclosed a benchmark acquisition to substantially flourish the beverage giant's presence in the sports drink market. The firm revealed the acquisition of over the remaining 85% stake in BodyArmor for USD5.6 billion. It signifies the biggest acquisition in company history. Coca-Cola purchased a 15% stake in 2020. • In January 2022, Anheuser-Busch Companies LLC is planning to launch energy drinks in India as the energy drinks category is primarily driven by millennials and affluent consumers across key urban cities in the country. • In February 2022, PepsiCo. Inc. launched a hemp energy drink in the U.S. containing ingredients such as hemp oil, vitamin B, spearmint, lemon balm, and caffeine. • In January 2022, Starbucks launched energy drinks in partnership with PepsiCo. Inc. The product is available in grocery stores, national retailers, and convenience stores across the U.S. and will roll out to Starbucks locations beginning in March 2022. Major Companies present in the market: The Coca-Cola Company, Nestlé S.A, PepsiCo, Inc, Red Bull GmbH, The Kraft Heinz Company, Molson Coors Beverage Company, Suntory Holdings Limited, Carlsberg A/S, GNC Holdings, LLC, Arizona Beverage Company, Ltd, Taisho Pharmaceutical Co./Lipovitan, Ajegroup, National Beverage Corp., Zevia, Ito En, Ltd., Otsuka Pharmaceutical Co., Ltd., Amway Corp, Dr Pepper Snapple Group, Celsius Holdings, Inc Considered in this report • Geography: Global • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • Global Energy & Sports drink Market with its value and forecast along with its segments • Region-wise Artificial Turf market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Regions & Countries covered in the report: • North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Spain, Italy, Russia) • Asia-Pacific (China, Japan, India, Australia, South Korea) • South America (Brazil, Argentina, Colombia) • Middle-East & Africa (UAE, Saudi Arabia, South Africa) By Product types • Energy Drink • Sport Drink By Distribution channel • Supermarket/Hypermarket • Convenience Stores • On-Trade • Online By Energy Drink Product Type • Non-Alcoholic • Alcoholic By Energy Drink Types • Non-Organic/ Conventional • Organic By Sport Drink Products types • Isotonic • Hypotonic • Hypertonic By Sport Drink Packaging Type • Bottle • Cans The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Smart Lighting industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.