Sports and Energy Drinks Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Germany, Japan, UK - Size and Forecast 2024-2028

Sports And Energy Drinks Market Size 2024-2028

The sports and energy drinks market size is forecast to increase by USD 106.7 billion at a CAGR of 13.52% between 2023 and 2028.

• The market is experiencing significant growth, driven by increasing consumer preferences for functional beverages and the rising number of health and wellness conscious consumers, particularly among millennials. This demographic is fueling market expansion with their active lifestyles and demand for convenient, on-the-go beverage solutions. Additionally, the market is benefiting from the trend toward more functional drinks, as consumers seek alternatives to traditional sugary drinks. However, challenges persist, including growing concerns over obesity and the potential health risks associated with excessive consumption of these beverages. Companies operating in this market must navigate these challenges by offering healthier options, transparent labeling, and effective marketing strategies to capitalize on the market's opportunities. Overall, the market presents significant growth potential for businesses that can effectively address consumer demands and navigate regulatory and health concerns.

What will be the Size of the Market during the forecast period?

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• The market encompasses a diverse range of functional beverages designed to enhance physical performance and provide energy boosts. These beverages, which include sports drinks fortified with electrolytes and energy drinks containing caffeine and organic sugar, have gained significant popularity among consumers seeking to optimize their health and fitness routines. Market size is substantial, with sales continuing to grow due to increasing consumer awareness and demand for convenient, on-the-go hydration solutions. Key market trends include the rise of B2C enterprises and ecommerce platforms, enabling easy access to these products for consumers worldwide. Additionally, international institutions and trade associations are driving research and development efforts to create innovative, functional beverages catering to various dietary preferences, such as keto, paleo, and plant-based diets.
• Vitamins and minerals are increasingly incorporated into these beverages, further expanding their appeal to health-conscious consumers. Overall, the market is a dynamic and evolving industry, poised for continued growth and innovation.

How is this Sports And Energy Drinks Industry segmented?

The sports and energy drinks industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Type
  • Organic
  • Non-organic
• Product
  • Energy drinks
  • Sport drinks
• Geography
  • APAC
    • China
    • Japan
  • North America
    • US
  • Europe
    • Germany
    • UK
  • South America
  • Middle East and Africa

By Type Insights

The organic segment is estimated to witness significant growth during the forecast period. The organic segment of the market is experiencing growth due to increasing consumer preference for natural and organic products. Brands like Runa Organic and Aura Organic offer organic sports and energy drinks that adhere to specific organic certification standards. The demand for these beverages is driven by consumers' heightened awareness of the potential health and environmental benefits associated with organic products. The organic segment of the market has seen consistent growth in recent years, as consumers prioritize natural and organic options.

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The organic segment was valued at USD 53.20 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in Asia Pacific (APAC) is experiencing growth due to increasing demand in emerging economies like India and China. Canned and bottled sports and energy drinks are becoming increasingly popular in the region. In 2022, China held the largest market share in APAC, driven by a high consumer preference for these beverages. Key companies in China include Red Bull, Coca-Cola, and Suntory. To expand their reach in APAC, manufacturers are investing in marketing and promotion. For instance, Coca-Cola launched single-serve bottles in India and Indonesia in 2019 to cater to budget-conscious consumers. Energy drinks, electrolytes, and functional beverages are popular categories in the market, with many containing caffeine, sugar, vitamins, and other nutrients.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of Sports And Energy Drinks Industry?

• Increased consumption among millennials is the key driver of the market. The global market for sports and energy drinks is experiencing significant growth as consumer lifestyles evolve and people seek additional energy sources. With an aging population, there is a growing demand for beverages that cater to specific health and wellness needs, such as stress management, energy retention, and combating fatigue.
• Millennials, in particular, are drawn to sports and energy drinks due to their perceived nutritional value, which is often linked to sports and physical activity. These beverages offer a convenient and effective way for this demographic to meet their unique requirements. The market's growth can be attributed to the increasing awareness of health and wellness, as well as the busy lifestyles that make it difficult for individuals to consume nutritious meals regularly. Sports and energy drinks provide a quick and convenient solution for consumers looking to maintain their energy levels throughout the day.

What are the market trends shaping the Sports And Energy Drinks Industry?

• Demand for more functional beverages is the upcoming market trend. The functional beverages market is witnessing a shift in consumer preferences towards sports and energy drinks. These beverages cater to the growing demand for products that offer both unique tastes and essential nutrients. Sports drinks, in particular, have gained popularity due to their electrolyte content, which is vital for maintaining proper hydration. Additionally, they provide significant carbohydrates, which are essential for providing energy during intense workouts and exercise.
• As a result, athletes and fitness enthusiasts are increasingly turning to sports and energy drinks to fuel their active lifestyles. The convenience and ease of consumption make these beverages a popular choice for those seeking to stay energized throughout the day.

What challenges does the Sports And Energy Drinks Industry face during its growth?

• Increasing cases of obesity is a key challenge affecting the industry growth. Consumers prioritize weight control in their health and wellness pursuits, leading them to opt for foods and beverages with minimal carbohydrate and sugar content. Among these choices are sports and energy drinks, which offer essential electrolytes and minerals to maintain body rejuvenation during physical activities.
• However, the added sugars in these beverages can contribute to weight gain and obesity, particularly among teenagers. Balancing health concerns and preferences, consumers seek sugar-free alternatives or moderated consumption. The market dynamics for sports and energy drinks reflect this trend, as manufacturers respond with product innovations to cater to the evolving consumer demands.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Acli Mate
• BioSteel Nordics
• Britvic plc
• Cargill Inc.
• Decathlon SA
• DyDo Group Holdings Inc.
• Energy Beverages LLC
• Gujarat Cooperative Milk Marketing Federation Ltd.
• Hype Energy
• Keurig Dr Pepper Inc.
• Large Life Ltd.
• Monster Energy Co.
• Otsuka Holdings Co. Ltd.
• PepsiCo Inc.
• Red Bull GmbH
• Shree Jalaram Group
• Suntory Beverage and Food Europe
• The Coca Cola Co.
• The Jel Sert Co.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The global market for functional beverages, which includes sports drinks and energy drinks, has witnessed significant growth in recent years. These beverages, which often contain electrolytes, caffeine, sugar, vitamins, and other functional ingredients, cater to consumers seeking enhanced energy, hydration, and nutritional benefits. Several factors have contributed to the growth of this market. Lifestyle changes, including increased participation in sports and fitness activities, have led to a greater demand for beverages that help replenish fluids and provide energy. Additionally, the proliferation of convenience stores, multi-outlet channels, and e-commerce platforms has made these beverages more accessible to consumers. Functional beverages come in various forms, such as sports drinks, energy drinks, flavored water, protein shakes, and enhanced water.

In addition, sports drinks are designed to help athletes and active individuals maintain hydration and replace electrolytes lost during physical activity. Energy drinks, on the other hand, provide a quick energy boost, often through the use of caffeine and sugar. The functional beverage market is diverse and dynamic, with new product offerings and innovations constantly emerging. For instance, some companies have introduced plant-based, keto, paleo, and other diet-specific beverages to cater to the evolving needs and preferences of consumers. Other offerings include hemp seed oil-infused beverages and functional waters infused with natural fruits and botanicals. The market for functional beverages is also influenced by international institutions and trade associations, which promote research and development in the industry.

Furthermore, these organizations provide valuable insights into consumer trends, market dynamics, and regulatory requirements, helping companies stay competitive and innovative. Despite the growth potential, the functional beverage market faces challenges, including increasing competition, changing consumer preferences, and regulatory issues. Companies must continually innovate and differentiate their offerings to stand out in a crowded market. Additionally, they must navigate complex regulatory environments and ensure their products meet the evolving needs and expectations of health-conscious consumers. In addition, the market is diverse and dynamic, with new product offerings and innovations constantly emerging. Companies must navigate a complex regulatory environment and stay attuned to changing consumer preferences to remain competitive in this dynamic market.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the Sports And Energy Drinks industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the market growth of industry companies

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