GLOBAL – The energy drinks market is projected to continue expanding as more physically active adults including athletes, students, and service members continue demanding more of the drinks to fuel their physical activities.
According to a new report published by Polaris Market Research, the global energy drinks market size is anticipated to reach USD 84.70 billion by 2026 growing at a CAGR of 7.3% from 2018 to 2026.
What are energy drinks?
Energy drinks are beverages that typically contain taurine, caffeine, vitamins, glucuronolactone, proprietary blends, herbal extracts, and amino acids.
These drinks are usually marketed as products that boost physical stamina and mental alertness.
During processing, these beverages are formulated both with and without sugar and may or may not be carbonated, thus the product ranges are significantly broad.
In spite of the significantly increasing demand, current evidence for efficacy, performance and safety is often contradictory and unsystematic.
Popularity among millennials
These products experience several different traction types from many demographics.
Hispanics are for instance deeply inclined to these products . Millennial consumers, on the other hand, opt for regular use of these beverages.
In the next decades, Polaris Market Research projects that demand for these products will be at its peak as these two consumer groups have been growing tremendously.
The primary concern of these beverages is that most of the product categories offered contain high caffeine concentrations.
The media, scientific community, athletic departments, governments, including the general public have expressed several safety concerns over consumption of these products.
In a response to these types of concerns, several legislators have formulated different regulations and educational approaches to limit consumption of these products.
These are some of the restraining factors that the industry participants face in the present scenario despite the growing demand.
Gradual shift towards functional low sugar products
With such commercial momentum of popularity of these products, the industry participants are not exempted from the beverage industry’s larger forces as a whole.
Demand for sugar free energy drinks or minimum sugar containing products that are formulated with natural ingredients have been rising.
Polaris Market Research notes that demand for sugar free or reduced sugar products have seen significant success spearheading present growth in the U.S.
Regular energy drinks, with high sugar content, have on the other hand been experiencing decline in sales.
Moreover, these organic or natural beverages are to satisfy all of the functional characteristics as the conventional products, as are the expectations of the modern consumers and their complex demands.
Consumers in the U.S.- the largest market for energy drinks today- are also demanding for new and wide variety of natural flavors and functionality within the low-calorie beverage categories
All in all, the enerdy drinks market is expanding and is creating new opportunities for market players from the startups, new market entrants to the legacy brand names.
Those that will benefit more are the ones that will take part of the evolution which is expected to redefine these products in the near future.
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