Global Sports and Energy drinks market is forecasted to grow at a Compound Annual Growth Rate (CAGR) of 11.19% and 9.97% in volume from 2015 – 2019, according to a new report by Technavio.
The growth drivers in this segment is the use of natural ingredients in new products as health concerns associated with consumption of energy drinks are prompting manufacturers to re-invent and address the issues.
Other growth drivers are increased brand awareness among consumers, rising disposable income and the expanding popularity of energy drinks among non-athletes.
The report notes that energy drinks are more popular with the youth population, especially people in the 18 – 34 age brackets. This demographic is also more likely to use energy drinks as mixers when consuming alcoholic beverages such as spirits. The report says that energy drinks are now increasingly being used as mixers for alcoholic beverages at social events and parties.
The report also notes that as manufacturers develop new products, the consumer base grows.
“Initially, athletes were the major consumers of these drinks; however, with the expansion of the market, the customer base has also shifted from just athletes to other customer segments also,” says Vijay Sirathi, one of the lead authors of the report.
Other trends identified in the report are the introduction of products that are sugar-free or have zero calories. Others are launching caffeine-free energy drinks to address the issue of high caffeine in energy drinks, which have being linked to cardiovascular problems.
The report states that the industry is changing with the introduction of new products, especially with different product categories, alternative sizes and flavours.
“For instance, the introduction of energy shots has created a segment due to the creation of a new product line. Currently, vendors are developing energy water and energy gum. These products are made up of natural ingredients,” said Sirathi.
“PepsiCo’s AMP has launched different flavours: blueberry, white grape zero, passion fruit, strawberry limeade, and watermelon zero, as well as energy gum. This type of product line innovation is expected to drive the global energy drinks market during the forecast period.”
Manufacturers are also getting inspiration from other beverage categories, added Sirathi.
“Energy drinks made with real fruit juices is an emerging trend in the market which is attracting health conscious consumers who are staying away from consuming energy drinks. Similarly, cocktail inspired flavours are increasingly becoming an important trend driving the younger consumers to increase their consumption of energy drinks globally.
“Tart and fruity flavours, coffee and energy, and tea and energy are some other notable examples of innovative products launched recently. Consumers have been tempted by the introduction of new flavours.”
The global sports and energy drinks market is dominated by a few key players holding a big share of the market. The manufacturers of these products are focusing on innovation to maintain their hold on the market. The market is also seeing the emergence of private label brands that provide low-cost shaving products.
The key energy drinks manufacturers are Coca-Cola, PepsiCo, Red Bull, and Monster Energy.
Other notable players include: All Sport, Amp Energy, Bomb Energy Drink, Boost Drinks, Burn, Cytosport, EAS, Enerzal, Frucor, Gusto Organic, Hype Energy Drinks, Labrada Nutrition, Lucozade, Montage Promoters, Pacific Health Labs, Rockstar Energy, Runa Beverages, Staminade, and Trend Food International.