A Look into U.S. Energy Drinks Industry……Deep Analysis…..
The U.S. energy
drinks market size is expected
to reach USD 26.93 billion by 2025,
according to a new report by Grand View Research, Inc., progressing at a CAGR of 7.2% during the forecast
period. Growing consumer awareness regarding health benefits of natural and
organic drinks has been driving the market. Energy beverage consumption has
turned into a status symbol, especially for youth. Such consumer behavior type
is expected to drive further the overall market demand. Consumption of alcohol
mixed with these energy beverages is quite popular in urban areas.
Amidst the
global pandemic crisis and the indefinite lockdown across nations, the consumer
food & beverage industry first witnessed high demand for household staples,
healthy food items, and consumables with longer shelf lives. The demand for
frozen food products, fruits & vegetables, eggs, flour, and whole grains,
among others, witnessed a considerable increase during the early stages of the
crisis. Presently, most companies in the industry are faced with low
consumption of their products and supply chain challenges. The companies are
focusing more on altering their supply chains in order to reinforce their
online presence and delivery measures, in an attempt to adapt to the present
business environment. The changes in consumer buying behavior and the dynamic
shifts towards online and D2C distribution channels may have serious
implications on the near future growth of the industry. Our team is diligently
working towards accounting these factors in our report with the aim of
providing you with the up-to-date, actionable market information and
projections.
Energy drinks have formed an integral
part of social gatherings, parties, and celebrations. Substitute’s availability
is anticipated to provide a significant threat to industry growth. Energy
drinks face stiff competition from aerated beverages, malted health drinks, and
packaged juice.
Taurine is another major component,
which is essential for cardiovascular function and skeletal muscle development.
Energy drinks manufacturers claim that these beverages reduce muscle fatigue,
ease the mental process and protect heart health. However, a scientific
consensus is yet to be achieved to support these statements. Increasing
awareness of health consciousness is the key driver for the growth in energy
drinks demand.
Recent trends show that most of the
manufacturers create product awareness through attractive advertising. These
manufacturers sponsor major sports events. Red Bull undertakes marketing
campaigns in major football events and Formula 1 car racing. They have been
targeting the youth through extreme sports event. Distinguished sports
personalities are endorsed to promote the brand. This kind of push strategy for
increasing the global demand is very popular in energy drink market.
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The non-organic segment was the
leading revenue contributor in 2016. Due to high initial market penetration and
no specific focus on the target market, these products are projected to aid the
market. At the same time, people lack awareness about the choice of products
and these happen to be cheaper than their counterparts. However, there has been
a trend of organic substances based products that have penetrated the market.
Further key findings from the report suggest:
·
The non-organic segment is
likely to reach USD 18.69 billion by 2025, at a CAGR of 7.0% from 2017 to 2025
·
In terms of revenue, the
organic segment is expected to expand at a CAGR of 11.6% over the forecast
period
·
In terms of revenue, the adult
segment is poised to exhibit a CAGR of 7.7% over the forecast period
·
The on-trade distribution
channel market is projected to exceed USD 18.5 billion by 2025
·
The off-trade & direct
selling segment is estimated to register a CAGR of 6.4% over the forecast
period
·
The industry is characterized
by accreditation of the product, capacity expansion, capital expansion, and
substantial investment decisions to improve market share. Some of the prominent
companies are Red Bull GmbH, Monster Energy, and Rockstar.
This trend has also penetrated the
energy drinks market. Since people are realizing the importance of organic
compounds in their consumption habits, this segment is expected to aid its
growth in the U.S., eventually will increase the growth of organic energy
drinks market exponentially over the forecast period. Increasing disposable
income and changing lifestyle of young population are expected to trigger
market growth of on-trade distribution channel over the forecast period.
Increasing demand for convenience
beverage and changing lifestyle in the region like workaholic culture, rising
sports activities and increasing income are attributed to the market growth.
The growing urban class has been the most attracting factor for the market growth
in the U.S. The rising popularity of sports in the country has a huge potential
for promoting their brand and create a sense of recognition and loyalty among
the customer.
The U.S. economy is undergoing a
large-scale development. Due to this there is huge demand for these energies
enhancing drinks since they improve the performance of the individuals and help
them to deliver better results and impact positively to the growth of U.S.
energy drinks market over the forecast period.
The
U.S. energy drinks market size was estimated at USD 14.30 billion in 2016.
Heightened health awareness and busy lifestyles coupled with increase in
consumer awareness regarding health benefits of the product have helped in
keeping the demand for energy drinks high in the U.S. Nearly 60.0% of male and
40% of female population in the U.S. are regular consumers of these beverages
and this trend is further estimated to boost market growth during the forecast
period.
There
has been rising concerns regarding these beverage consumption because of high
caffeine presence. Excess use has been associated with health risks, which
include sleeplessness, frequent urination, and abnormal heart rhythms. Such
health risks associated are expected to restrain the growth of the market over
the forecast period.
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Press Release of this report:
Grand View Research has segmented the U.S.
energy drinks market on the basis of product, target consumers, and
distribution channel:
U.S. Energy Drinks Product Outlook (Revenue, USD Billion,
2014 - 2025)
·
Non-Organic Energy Drinks
·
Organic Energy Drinks
·
Natural Energy Drinks
U.S. Energy Drinks Target Consumer Outlook (Revenue, USD
Billion, 2014 - 2025)
·
Teenagers & Kids
·
Adults
·
Geriatric Population
U.S. Energy Drinks Distribution Channel Outlook (Revenue,
USD Billion, 2014 - 2025)
·
On-trade
·
Off-trade & Direct Selling
About Grand View Research
Grand View Research, Inc. is a U.S.
based market research and consulting company, registered in the State of
California and headquartered in San Francisco. The company provides syndicated
research reports, customized research reports, and consulting services. To help
clients make informed business decisions, we offer market intelligence studies
ensuring relevant and fact-based research across a range of industries, from technology
to chemicals, materials and healthcare.
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