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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 due to several key trends and factors. Firstly, the increasing consumption among millennials, who prioritize an active lifestyle and seek convenient, on-the-go beverage options, is driving market growth. Additionally, the demand for more functional beverages that offer nutritional benefits, such as electrolytes and caffeine, is fueling market expansion. Furthermore, the rising cases of obesity and the subsequent need for healthier energy alternatives are also contributing to the market's growth. These trends are expected to continue, making the market an attractive investment opportunity for businesses.
The global market is experiencing significant growth due to the increasing popularity of active lifestyles and the demand for hydration and energy enhancement. These beverages, which include sports drinks and energy drinks, provide essential electrolytes, caffeine, sugar, vitamins, and other functional ingredients to support physical performance and mental alertness. Sports drinks are specifically designed to replenish fluids, electrolytes, and carbohydrates lost during intense workouts or athletic events, making them a staple for B2C enterprises catering to the health-conscious consumer. Energy drinks, on the other hand, contain higher levels of caffeine and sugar, providing a quick energy boost for those with demanding lifestyles or requiring extended focus.
Furthermore, functional beverages, including sports and energy drinks, are increasingly being sold through multi-outlet channels, such as supermarkets, convenience stores, and e-commerce retail platforms. The market is also witnessing a trend towards healthier options, with the rise of keto, paleo, and plant-based diets influencing the development of sugar-free food and beverage, low-calorie, and organic variants. International institutions and trade associations play a crucial role in setting industry standards and promoting research and development within the market. The market is expected to continue growing, driven by consumer preferences for convenient, functional, and health-enhancing beverages.
The market 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.
The organic segment is estimated to witness significant growth during the forecast period. The market for sports and energy drinks continues to evolve, driven by consumers seeking enhanced performance and vitality. These beverages, which include electrolytes, caffeine, sugar, vitamins, and functional ingredients, cater to various lifestyles and dietary preferences. C-stores and multi-outlet channels dominate sales, with brands like Red Bull, Monster Energy, and Coconut Water leading the charge. Protein shakes, flavored water, enhanced water, and hemp seed oil-infused drinks also gain traction. Lifestyle changes, including the rise of Keto, Paleo, and plant-based diets, influence consumer choices. International institutions and trade associations shape industry regulations and trends. B2C enterprises and eCommerce platforms expand their reach, while convenience stores, hotels, restaurants, catering, and retail selling prices remain key revenue generators. Social outlook and Powerade Power Water further enrich the diverse sports and energy drink landscape.
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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.
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 continues to evolve, driven by consumers' increasing preference for functional beverages that cater to their active lifestyles. These beverages, which include sports drinks, energy drinks, and other functional offerings such as protein shakes, flavored water, and enhanced water, provide essential nutrients like electrolytes, caffeine, sugar, vitamins, and amino acids. The trend toward lifestyle changes, including C-stores, multi-outlet channels, and international institutions, has fueled the growth of this market. Brands like Red Bull, Monster Energy, and Coconut Water, dominate the landscape. Consumers following Keto, Paleo, plant-based diets, and B2C enterprises are also turning to these beverages, leading to increased sales through e-commerce, convenience stores, hotels, restaurants, catering, and retail channels.
Furthermore, prices remain a significant factor, with trade associations and social outlook playing a role in setting retail selling prices. Powerade Power Water is another popular brand in this category, offering a low-calorie alternative to traditional sports drinks. Overall, the market for sports and energy drinks is expected to continue its strong growth trajectory, driven by consumer demand for convenient, nutrient-rich beverages.
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.
The increased consumption among millennials is the key driver of the market. The global market is experiencing significant growth due to shifting consumer lifestyles and increasing demand for beverages that cater to specific health and wellness needs. As people age, their energy requirements change, leading to a growing preference for sports and energy drinks that provide essential electrolytes, caffeine, sugar, vitamins, and other functional ingredients. Millennials, in particular, are driving this trend, seeking beverages with strong nutritional profiles to help manage stress, retain energy, and combat fatigue. These consumers view sports and energy drinks as superior to other beverages due to their association with sports and physical activity.
Furthermore, functional beverages, including sports drinks, energy drinks, coconut water, protein shakes, flavored water, and enhanced water, are gaining popularity among this demographic. Multi-outlet channels, such as convenience stores, retail, hotels, restaurants, catering, and eCommerce platforms, are key sales channels for these beverages. International institutions and trade associations play a crucial role in shaping the social outlook of these products, with offerings that cater to various dietary trends, such as Keto, Paleo, and plant-based diets. Brands like Red Bull and Monster Energy dominate the market, with varying product offerings and price points. Retail selling prices for these beverages continue to remain competitive, reflecting the intense market competition.
The demand for more functional beverages is the upcoming trend in the market. The functional beverages market is witnessing a significant rise in demand for sports and energy drinks due to consumers' increasing awareness of their health and lifestyle changes. These beverages offer more than just exotic tastes; they provide essential nutrients that contribute to overall well-being. Sports drinks, in particular, are renowned for their electrolyte content, which is crucial for maintaining proper hydration. Additionally, they contain carbohydrates that provide energy during intense workouts and exercise. Energy drinks, on the other hand, contain caffeine and sugar that help consumers stay alert and energized throughout the day. Functional beverages, including sports and energy drinks, are gaining popularity among athletes, gym-goers, and consumers following active lifestyles.
Furthermore, C-stores, multi-outlet channels, and other retailers are capitalizing on this trend by stocking a wide range of sports and energy drinks. International institutions and trade associations also recognize the potential of this market and are closely monitoring its social outlook. As consumers adopt Keto, Paleo, and plant-based diets, B2C enterprises and eCommerce platforms are offering a range of options to cater to these dietary requirements. The convenience stores, hotels, restaurants, catering, and retail sectors are also embracing this trend, with selling prices reflecting the value proposition of these functional beverages.
The increasing cases of obesity is a key challenge affecting the market growth. The market for sports and energy drinks continues to gain momentum as consumers seek beverages that support an active lifestyle and promote wellness. These functional beverages, which include sports drinks, energy drinks, and flavored water, provide essential electrolytes, vitamins, and in some cases, caffeine to help consumers maintain energy levels during physical activities. However, the sugar content in these drinks, which is necessary for providing energy, can be a concern for those focusing on weight control. As lifestyle changes prioritize healthier choices, the demand for sugar-free or reduced-sugar options is increasing. This shift is reflected in the growing popularity of coconut water, protein shakes, and enhanced water, which offer similar benefits without the added sugars found in traditional sports and energy drinks.
Additionally, the rise of plant-based diets, such as Keto, Paleo, and veganism, has led to an increase in demand for hemp seed oil-infused beverages and other plant-based functional drinks. Multi-outlet channels, including convenience stores, hotels, restaurants, catering, and retail, are key sales avenues for these beverages. International institutions and trade associations play a significant role in shaping the market's social outlook, with ongoing research and development efforts focused on creating healthier, more sustainable options. Despite these trends, traditional brands continue to dominate the market, offering a wide range of flavors and product lines to cater to diverse consumer preferences. The retail selling prices for these beverages vary, with eCommerce platforms and B2C enterprises offering competitive pricing to attract price-sensitive consumers.
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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Abbott Laboratories: The company offers sports and energy drinks such as Sugar-free sports drinks.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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 market 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.
The global market for sports and energy drinks is experiencing significant growth due to increasing consumer awareness of the benefits of hydration and energy enhancement. These beverages, which include sports drinks, energy drinks, functional beverages, protein shakes, and enhanced water, provide essential electrolytes, caffeine, sugar, vitamins, and other nutrients that support an active lifestyle. Lifestyle changes, including the rise of keto, paleo, and plant-based diets, have led consumers to seek out beverages that cater to their specific dietary needs. As a result, the market for sports and energy drinks is expanding to include a wider range of options, such as coconut water, hemp seed oil-infused drinks, and low-sugar or sugar-free alternatives.
Furthermore, the market is served by various channels, including convenience stores, multi-outlet channels, ecommerce, hotels, restaurants, catering, and B2C enterprises. International institutions and trade associations play a crucial role in shaping the social outlook and regulatory landscape of the market. Key ingredients, such as caffeine and sugar, continue to be a focus for consumers, with many opting for reduced or zero sugar options and natural sources of caffeine. Brands are offering a range of flavors and functional benefits to meet the diverse needs of consumers. Retail selling prices remain a significant factor in the competitiveness of the market, with price pressures driving innovation and product differentiation.
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Market Scope |
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Report Coverage |
Details |
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Page number |
165 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 13.52% |
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Market growth 2024-2028 |
USD 106.7 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
10.87 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 42% |
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Key countries |
US, China, Germany, Japan, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Abbott Laboratories, 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., and The Jel Sert Co. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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