Energy drinks are beverages that contain caffeine and other stimulants that is consumed as a soft drink with an assumption that it improves the physical and cognitive performance. Various forms of energy drinks are available in the market based on consumer preferences- Cans, shots, mix and powders. Cans and shots have been prevalent in the market but mixers and powders are currently trending in the global scenario now. The changing taste preferences of consumers and demand for less calorized and sugar free drinks have a robust growth in the near future. Few more variants like energy gums, snack bars, energy sprays have a potential market in the future and are yet to position themselves on the global map.
Organic and natural energy drinks to have significant importance in the global market Organic and natural energy drinks are adding a good market share in the global market with its gradually increased demand and consumption. This form of energy drink contains naturally caffeinated raw material without the addition of artificial colors and flavors in it. The presence of anti-oxidants and vitamins serve the nutritional serving required by the body. These health benefits are paving way for the energy drink makers to maintain the dominance in the market. On the pricing side, the organic and natural energy drinks are costlier than the inorganic or synthetic energy drinks, which will affect the demand and supply in the market.
Various parts of South American and African market are still largely untapped Energy drinks have the smallest share in the beverages industry, therefore, the entry into various global markets has been steady with higher acceptance. Premium brands like Red Bull is not affordable to the consumer segments with low per capita income. For this reason, countries like Peru depend on the domestic and low-priced energy drinks. Countries like Egypt mostly prefer Red Bull but the per capita consumption is very low. This is an opportunity to the energy drink manufacturers who can tap a potentially larger consumer segments in these countries.
The Underlying Challenges In the last few years, energy drinks market have witnessed sluggish growth due to negative impacts on health caused by excess consumption, especially by the children in the age group (10 to 16 years). The heavy and long-term consumption by them are owing to severe health concerns. There are strict regulations on the packaging and advertisements targeting sports persons, which encourages children to consume them. Labels displaying the contents are made obligatory to highlight and prevent excessive consumption.