Energy drinks, erstwhile, only consumed and even marketed for the athletic community, have made their place in the shopping baskets of every household. The market, with a staggering revenue of USD 38,300 million, has reached its all-time peak in 2024. With the advent of plant-based and non-dairy energy drinks, the market is very likely to flourish in the coming future.
The global energy drinks market is experiencing rapid growth, driven by increasing consumer demand for functional beverages that boost energy and mental alertness. Key factors fueling the market include rising urbanization, a fast-paced lifestyle, and the growing popularity of sports and fitness activities.
Dominated by leading brands like Red Bull, Monster, and Rockstar, the market is also witnessing a surge in demand for healthier, organic, and sugar-free alternatives. Regional trends show significant expansion in Asia-Pacific and North America, with innovative marketing strategies and product diversification as primary growth drivers.
The need for instant refueling of energy, especially in the younger demographics, is shaping the future of this market. With the proliferation of influencer brands in developed countries like the United States, the United Kingdom, and India, this global valuation is slated to surpass USD 64,876 million by 2034.
Considering the rising number of people dealing with chronic diseases, brands in developed countries are also introducing zero-calorie or no-fat energy drinks. In countries like Japan, Germany, China, etc., where the growing aging population is the key concern, these types of strategies are very likely to strengthen market growth. The market is expected to grow at a modest CAGR of 5.40% through 2034.
“Sustainability of energy drinks bottles and tetra-packs is still a major concern in this market. Companies involved must embrace sustainable packaging and disposable of energy drinks bottles to cater to the demand of eco-conscious consumers and businesses”, opines an FMI analyst.
Key Takeaways from the Market Study
- The RTD segment dominates the global energy drink market with a share of 66.40% in 2024.
- Based on product type, the caffeinated segment leads the energy drink market with a share of 76.50% in 2024.
- The energy drink market in India is anticipated to grow at a CAGR of 7.60% through 2034.
- The energy drink market in Germany is estimated to rise at a 5.60% CAGR through 2034.
- The energy drink market in Japan has the potential to increase at 6.10% CAGR through 2034.
- The United States energy drink market is predicted to rise by 5.00% CAGR through 2034.
- The energy drink market in China is very likely to grow at a CAGR of 7.00% through 2034.
Competitive Landscape
The global energy drinks market is highly competitive and consists of numerous international and domestic brands. Initially targeting athletes, these brands have expanded their consumer base over time.
The rise of eCommerce and last-mile delivery services has made it easier for international brands to reach consumers in developing and underdeveloped countries. The market is dominated by prominent companies such as Monster Beverage Corp., Kraft Foods Inc., The Gatorade Company, Inc., PepsiCo Inc., Coca-Cola Co., Red Bull GmbH, Nestlé S.A., Carlsberg A/S, NEALKO ORAVAN, spol s.r.o, Kabisa B.V., Suntory Holdings Ltd., etc. These companies have established a strong global presence and have expanded their consumer reach across international borders over time.
Recent Developments
- Sprecher Brewing Co. entered the energy drinks market by acquiring Juvee from 100 Thieves in January 2024.
- Monster Energy Ultra launched its new flavor, Fantasy Ruby Red, through an AR experience in March 2024.
- Tata Consumer Products entered the energy drink market in September 2023 with Say Never Energy Drink, endorsed by James Blake.
- Prime Energy drink, founded by YouTubers Logan Paul and KSI, became the official drink of the LA Lakers in March 2024.
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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