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(HomeGarden247.com, January 11, 2018 ) The trend of picking up energy drinks for a jolt of energy continues to contribute towards growth of the billion dollar market of energy drinks globally. As these drinks are served cold and carbonated, they have a refreshing effect on the customers. Increasing need for recovering energy is expected to rev up demand for the energy drinks among the customers. Consumption of sports drink further helps in keeping the nerve cells and red blood cells healthy. Attributed to vitamin B6, consumption of energy drinks helps in improving nervous system, immunity, and cardiovascular functions of the body. According the World Health Organisation, increasing consumption of energy drinks could pose danger to the public health, particularly the young population. Moreover, the America Academy of paediatrics states that the energy drinks should not be consumed.
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According to a published report by Fact.MR, the global energy drinks market is expected to witness a steady CAGR, and will represent a value of over US$ 37,000 Mn by the end of 2022.
Factors Fuelling Growth of the Global Market
1. The global energy drinks market continues to grow on account of a host of macroeconomic and microeconomic factors. Consumption of energy drinks is largely concentrated among athletes and sportspersons. Energy drinks remain a popular source of instant nourishment and refreshment and they have remained popular among consumers who indulge in strenuous activities.
2. According to Australian Institute of Sports Nutrition, the high content of carbohydrates in energy drinks helps athletes in recovering lost nutrients quickly. Energy drinks are high in ergogenic acid, which can help in revitalizing the body.
3. In addition to the ‘athletes’ demographic, demand for energy drinks is also significant in the healthcare sector. Energy drinks contain niacin, which helps in management of arthritis and low blood lipids. High content of pantothenic acid in energy drinks also helps in management of allergies, skin disorders, anxiety, and stress.
4. Although the outlook on energy drinks market remains positive, concerns about the potential side-effects of energy drinks have meant that more consumers are shifting to natural and organic drinks. There has been a significant shift in consumer behavior towards drinks that have been manufactured from natural ingredients. Changes in perceptions among consumers can lead to dip in global sales of energy drinks.
Moderate Demand in the Sports Industry
Energy drinks are expected to witness considerable demand among the sportsmen, and athletes for enhanced performance. Attributed to increasing training and practice sessions, consumption of energy drinks is high among the athletes. Moreover, several sportsmen increasingly consume energy drinks in order to enhance performance level, and boost their energy levels. According to the Australian Institute of Sports Nutrition site, the carbohydrate content in these energy drinks helps in enhancing performance as it helps in recovering and increasing energy. Further, the ergogenic aid in the caffeine also enables athletes to enhance performance. Bound to such factors, the energy drinks witness considerable demand in the sports industry positively.
Consumption in the Healthcare Industry
Several ingredients in these energy drinks contain ingredients that are expected to benefit the health of consumers. These drinks have high content of vitamin B, which enables the consumer in fighting heart diseases and cancer. Attributed to high niacin content, these energy drinks enable the consumers to relieve lower blood lipids, and arthritis pains. These drinks also contain pantothenic acid, consumption of which helps in healing skin disorder, stress, allergies, and anxiety. Furthermore, demand for energy drinks remain high attributed to surge in riboflavin content, which helps in treating blood disorders, and cramps in muscles. Bound to such factors, energy drinks continue to witness stable demand in the healthcare industry.
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Modern Trade to Represent a Dominant Segment
As per a recently published report by WHO, consumption of alcoholic beverages is expected to remain high in several regions except Western Pacific region, particularly China. The alcoholic segment is expected to witness the highest revenue growth, accounting for over US$ 8,000 Mn in the global energy drinks market by the end of 2022. This segment is expected to register the highest CARG in the global market throughout 2022.
With increasing prevalence of diabetes, demand for organic energy drinks is expected to remain high. The organic segment on the basis of nature type is expected to witness robust CAGR in the global market throughout 2022. In terms of revenue, the non-organic segment is expected to represent over US$ 7,000 Mn in the global energy drinks market by the end of 2017.
Sales of energy drinks through the modern trade segment on the basis of distribution channels is expected to generate the highest revenues, accounting for over US$ 5,000 Mn by the end of 2022. However, the e-commerce platform is expected to register the highest CAGR in terms of sales in the global market through 2022.
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