Energy Drinks Market To Grow By USD 40.04 Billion From 2023-2027, As Hectic Lifestyles Drive Demand With AI Impact On Market Trends - Technavio

NEW YORK, Nov. 8, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape - The global energy drinks market size is estimated to grow by USD 40.04 billion from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of 8% during the forecast period. Hectic lifestyle and need for instant energy is driving market growth, with a trend towards increase in demand for low-calorie energy drinks. However, stiff competition from low-cost substitutes poses a
challenge market players include Abbott Laboratories, Britvic plc, Cargill Inc., Decathlon SA, DyDo Group Holdings Inc., Hype Energy, Keurig Dr Pepper Inc., Monster Beverage Corp., National Beverage Corp., Otsuka Holdings Co. Ltd., PepsiCo Inc., Red Bull GmbH, Slades Beverages, Suntory Beverage and Food Europe, and The Coca Cola Co.

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Key Market Trends Fueling Growth

The Energy Drinks Market is experiencing significant growth due to increasing consumer demand for instant energy and mental stimulation. Caffeine, a key ingredient in soft drinks and carbonated beverages, is a major driver of this trend. Fruit and vegetable flavors, vitamins and minerals, and electrolytes are also popular additives in energy drinks. Rising incomes and a focus on health and wellness have led to the popularity of immunity-boosting beverages and supplements. Taurine, ginseng, and guarana are common stimulants used in energy drinks. However, there are health risks associated with excessive caffeine intake, including hypertension, nausea, restlessness, and sleep deprivation. The nonalcoholic segment, including sports drinks and beverage concentrates, dominates the market. Adults and teenagers are the primary consumers, with millennials and the younger generation showing a preference for functional ingredients like yerba mate and green tea extract. The market is expected to continue growing, with expert analysis suggesting that consumer preferences and purchasing patterns will shape future trends. Alcoholic and nonalcoholic beverages, including water, tea, coffee, and energy drinks, all play a role in the market. Sweeteners, dietary choices, and the diabetic and prediabetic segments are also important considerations. Major players in the market include Red Bull, Monster Energy, and various fruit flavors like lemon, lime, orange, berry, watermelon, and mango.

The energy drink market has experienced significant growth due to changing consumer preferences. With increasing health awareness, there is a rising demand for low-calorie energy drinks. Obesity is a major concern, leading consumers to avoid beverages with high sugar content. In response, manufacturers like Red Bull have introduced sugar-free variants. The food and beverage industry is witnessing a trend towards healthier options. Energy drinks, once associated with high sugar content, are now shifting towards healthier alternatives. This shift is a response to consumers' increasing health consciousness and desire for beverages that support an active lifestyle without compromising their health.

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Market
Challenges

• The Energy Drinks Market faces several challenges. Caffeine is a major ingredient, raising concerns over caffeine overdose, hypertension, nausea, restlessness, and other health risks. Soft drinks and carbonated beverages are facing increasing competition from healthier options like bottled water, sports drinks, and beverage concentrates. Fruit and vegetable drinks, immunity-boosting beverages, and vitamins and minerals are gaining popularity. Rising incomes and consumer lifestyle shifts towards health and wellness are driving demand for energy drinks with functional ingredients like taurine, ginseng,
  guarana, and electrolytes. However, the market also faces challenges from traditional beverages like tea and coffee, which offer energy and alertness. The nonalcoholic segment, particularly among adults, is a major growth area. Consumer preferences and purchasing patterns are influenced by factors like disposable incomes, sweeteners, and dietary choices. The market also caters to specific segments like athletes and those suffering from sleep deprivation. The market is competitive with major players like Red Bull, Monster Energy, and various flavors like lemon, lime, orange, berry, watermelon, and mango. Diabetics and prediabetics present a challenge due to sugar content, while the younger generation and millennials are driving demand for innovative flavors and functional ingredients. The market also faces competition from alcoholic beverages, which offer instant energy and mood enhancement, but have depressive effects. Expert analysis suggests that the market will continue to evolve based on consumer preferences and health concerns.
• The energy drinks market experiences significant competition from more affordable alternatives such as fruit juices and soft drinks. These substitutes, which have been in the market for an extended period, offer consumers energy-providing substances like glucose, vitamins, and minerals. Despite the presence of stimulants like ginseng and
  guarana in energy drinks, the cost of these beverages remains higher due to marketing expenses associated with popular brands and their involvement in sports events. As a result, the affordability of substitutes continues to hinder the growth of the energy drinks market, particularly in emerging economies.

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Segment Overview

This energy drinks market report extensively covers market segmentation by