The energy drinks market has seen considerable growth due to a variety of factors.
• In recent years, the market size for energy drinks has seen substantial growth. It is projected to expand from $67.64 billion in 2024 to $72.79 billion in 2025, with a compound annual growth rate (CAGR) of 7.6%.
Factors that contributed to this rise in the historical period include marketing strategies, evolving lifestyles, innovative mixes, active and healthy lifestyle trends, and distribution channels.
The energy drinks market is expected to maintain its strong growth trajectory in upcoming years.
• In the upcoming years, the energy drinks market size is anticipated to experience a significant increase. By 2029, it is forecasted to reach a whopping $97.27 billion, with a compound annual growth rate (CAGR) of 7.5%.
Several factors could contribute to this growth in the forecast period, including an increased awareness of health, a rise in disposable income, innovative flavors and formats, globalization and market expansion, the rise in e-commerce, and the incorporation of functional ingredients. Noteworthy trends in the forecast period are a focus on sustainability, customization, and personalization, e-commerce growth, functional mixing, regulatory examination, and transparency.
The growth of the energy drink market is anticipated to be driven by the burgeoning e-commerce industry. E-commerce, which is the online buying and selling of goods and services, has a significant impact on the energy drink sector by offering a user-friendly platform to customers for purchasing and exploring a variety of products, and helping brands to tap into a wider market. For example, the International Trade Administration (ITA), a US government body, reported in November 2023 that e-commerce revenues in the UK are predicted to see an average yearly growth of 12.6% until 2025. Hence, the surge in the e-commerce sector is spearheading the expansion of the energy drink market.
The energy drinks market covered in this report is segmented –
1) By Product Type: Drinks, Shots, Mixers
2) By Packaging: Bottle, Can, Other Packagings
3) By Distribution Channel: Convenience Store, Super market Or Hyper market, Pharmacies Or Health Stores, Online Retail
Subsegments:
1) By Drinks: Carbonated Energy Drinks, Non-Carbonated Energy Drinks
2) By Shots: Energy Shots, Herbal Energy Shots
3) By Mixers: Energy Drink Mixes, Powdered Energy Mixes
Prominent businesses in the energy drink sector are shifting their attention to the development of energy drinks that enhance cognitive functions and offer beneficial features such as enhanced mental sharpness, proper hydration, and persistent energy. Energy drinks are typically packed with caffeine, sugars, vitamins, and other substances intended to escalate energy levels, augment mental sharpness, and boost bodily performance. For example, Rockstar Energy Drink, an American energy beverage firm, unveiled Rockstar Focus in January 2024, a novel range of energy refreshments. Rockstar Focus is expressly crafted to intensify mental clarity and concentration, boasting a mixture of natural caffeine, vitamins, and nootropics. This groundbreaking product caters to customers seeking a beneficial spike in their routine tasks, be it for professional, academic, or recreational purposes. With unique flavors like Citrus Burst and Berry Boost, Rockstar Focus not only energizes but also stimulates cognitive functions, making it an ideal selection for those desiring mental and physical vigor.
Major companies operating in the energy drinks market include:
• Red Bull GmbH
• Monster Beverage Corporation
• Rockstar Inc.
• PepsiCo Inc.
• Coca-Cola Company
• Keurig Dr Pepper Inc.
• Celsius Holdings Inc.
• Arizona Beverages USA
• Otsuka Pharmaceutical Co. Ltd.
• Lucozade Ribena Suntory Ltd.
• Living Essentials LLC (5-hour Energy)
• Taisho Pharmaceutical Co. Ltd.
• Energy Beverages LLC
• Stokely-Van Camp Inc. (Gatorade)
• Power Horse Energy Drinks GmbH
• National Beverage Corp.
• XYIENCE Inc.
• REIZE Energy Drink
• Krating Daeng
• Suntory Holdings Ltd.
• Vital Pharmaceuticals Inc. (Bang Energy)
• Frucor Suntory
North America was the largest region in the energy drinks market in 2024. The Asia-Pacific is expected to be the fastest-growing region in the energy drinks market during the forecast period. The regions covered in the energy drinks market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.