“Energy drinks claim to increase focus and improve Performance”

Overview

Energy drinks are typically nonalcoholic beverages which contain high levels of caffeine and sugar which is having stimulant properties.They are marketed to relieve mental fatigue and improve alertness.

Herbal extracts such as guarana, ginseng, yerba mate, ginkgobilobaglucuronolactone, taurine, inositol, L-carnitine and B-vitamins are the main ingredients to enhance physical and mental endurance of customers.

These drinks typically have 150 mg of caffeine per liter. Caffeine stimulates nervous system and they are bound increase endurance and performance in adults. These energy drinks also contains sugar. They also have preservatives, colorings, acidity regulators, vitamins, flavorings and stimulants. These drinks also have carbonated water.

Energy Shots

Energy shots are a specialized form of energy drinks which contain the same amount of caffeine in a small amount of liquid, typically 60-90 mL small bottles or cans. These may be considered as concentrated energy drinks with lesser calories and lower sugar content.

Energy drinks/energy shots are consumed to improve the stamina and energy levels before and during exercise, to re-hydrate the body, to keep awake in demanding situations, to compensate for loss of sleep especially during examinations, or to get a kick as a mood elevator.

Energy Drinks – Entry to the World

Energy drinks were introduced to the world in 1949 by the name of ‘Dr. Enuf’ in US; these were fortified with vitamins and projected as a better alternative to sugar sodas. Subsequently, these became available in Europe and Asia in 1960.

Lipovate D, an energy drink that still dominates the Japanese market, was launched in 1962.

Energy Drink Market

“Energy drinks are beverages that have ingredients like caffeine, vitamins and herbs. They claim to give you more energy and make you feel alert.”

Benefits of Energy Drinks

  • Refreshing
  • More Energy
  • Sustained Vitality

“Energy drinks can transport on some of their assured benefits by growing brain function and serving you function when you’re tired or sleep-deprived.Energy drinks have developed increasingly common amongst the people in today’s society.”

Top most Energy Drinks Available in India:

  • Red Bull
  • Mountain Dew
  • Monster
  • Tzinga
  • Glucon – D
  • Sting
  • Café Cuba
  • Amino Energy
  • Rockstar
  • Burn

Red Bull

Later, several companies introduced similar drinks but none could make a mark till 1997, when ‘Red Bull’ was introduced by an Austrian entrepreneur. This brought a boom to the industry and ever since the market for energy drinks is growing exponentially. More than 300 variants of energy drinks are available in the US market alone. India, China, and Brazil are considered as the growing markets.

Red Bull

Features of Global Energy Drinks Market

  • The global energy drinks market is estimated to grow at a CAGR of 7% from 2017 to 2025.
  • The organic segment is expected to emerge as the fastest product type segment in 2015 and is anticipated to reach a net worth exceeding USD 32 billion by 2025.
  • The teenager’s consumer segment generated revenue worth of USD 16.33 billion in 2016 and is projected to grow at a CAGR of 6.8% over the forecast period
  • The geriatric population growth in the market is anticipated to rea/ch 12 billion by 2025 over the upcoming years.
  • On-trade distribution is projected to emerge as both largest and fastest segment and is estimated to reach USD 71.65 billion by 2025 at a CAGR of 7.1% from 2016 to 2025.
  • The Asia Pacific energy drinks industry is expected to witness the fastest growth in terms of revenue. It is expected to reach USD 24.17 billion by 2025, growing at a CAGR of 7.5% from 2016 to 2025.
  • Demand for alcoholic beverage sector in the China was valued at USD 1.14 billion in 2015 and is expected to grow at a CAGR of 7.5% from 2016 to 2025.
  • Energy drinks market share in Europe is expected to grow at a CAGR of 6.7% over the forecast period and to reach USD 19.12 billion by 2025.
  • Major players Red Bull GmbH, Monster Energy and Rockstar. Other players having significant stake in the market include PepsiCo. Inc., Xyience Energy, and Amp.

Global Energy Drinks Market – Growth

rink Market Growth

Energy drinks part covers a broad range of options, including ready-to-drink (RTD), clips, and in powder form. Globally, energy drinks account for 47.3% of the global market share of functional beverages, while in the United States they represent 62.6%.

The remarkable growth of more than 240% in the US and abroad between 2004 and 2009 was particularly energy drinks. In 2020, a sale of the functional beverage industry worldwide is expected to reach 26900 million at a CAGR of 8.6% 2004-2008.

Energy consumption having made a significant announcement for these drinks is easy and straightforward to easily access grocery supermarkets and supermarkets, which are acceptable and can reach all age groups of the population. It deserves considering that energy drinks are sold in more than 140 countries, and the other half of the consumers of these drinks consist of children, adolescents and young people.

Red Bull and Indian Market

Red Bull was launched in India in 2003. With a 75% market share, it is presently leading the Indian market of energy drinks. The energy drink market in India was pegged at Rs. 700 crore in 2013; comprising of 5% of the total soft drinks market dominated by colas, fruit juices, and flavored milk compared to 8-9% in global market.

India Energy Drinks Market Worth

Latest statistics show that Indian Energy drinks market is estimated at 154.5 million dollars and it is expected to grow at a combined CAGR of 25 – 30%.

Indian Percapita Energy Drinks Consumption

T scope for the ready to drink segment can be understood by the fact that Indian consumers drink an estimated 120 billion litres of beverages, of which only 4% are ready-to-drink packaged ones.

New Segments and Benefits

Manufacturers have now shifted their focus from athletes – the primary target for energy drinks – to teenagers and young adults. According to an estimate, about 71% of adolescents in urban centers of India consume energy drinks. Despite the cost factor, youth do not mind spending money on energy drinks due to their much advertised perceived benefits on endurance, attention, and stamina.

ENERGY DRINKS

  • Energy drink market analysis volume growth is 60.2%
  • According to well-known industry sources, Market share of mainstream energy drink is Red Bull (43%)
  • Energy drinks are very popular among youth and are regularly consumed by 18 to 34 years.
  • More than 29 billion gallons of energy drink liquid is consumed by Americans every year.

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