Overview of the sports and energy drinks market
Technavios research analyst predicts the global sports and energy drinks market to grow steadily at a CAGR of 11% during the forecast period. The use of natural ingredients is one of the primary drivers for the growth of this market. The growing health concerns related to the continuous consumption of energy and sports drinks on a regular basis have led vendors to launch products energy drinks with extracts from organic guarana and organic raw green coffee beans. For instance, Scheckter launched an organic energy drink called Organic Energy which contains extracts from organic Brazilian guarana, organic raw Brazilian coffee seed, organic pomegranate juice, organic ginseng, organic elderberry, and organic lemon juice.
The false claims made by certain vendors is expected to deter the market growth during the forecast period. There have been many instances of the sports and energy drinks vendors being sued for their false claims about their products. For instance, during 2014, Red Bull was sued for wrongly claiming in their advertisement that drinking it would give wings to the customers and had to pay a settlement of nearly USD 13 million.
Product segmentation and analysis of the sports and energy drinks market
Energy drinks dominated the market during 2014, with a market share of 71%. The report predicts this segment to retain its leadership until the end of 2019. The report predicts this segment to grow at a rate of 13% during the forecast period. The rising popularity of energy drinks among young people, the increase in the launch of new varieties and types of energy drinks, and the constant innovation in the taste of these drinks are some of the drivers for the growth of this segment.
Segmentation by distribution channel and analysis of the sports and energy drinks market
Hypermarkets and supermarkets accounted for 57% of the market share during 2014. This retail format is growing rapidly in developing economies. In ASEAN countries, the penetration of modern retail chains has increased from 38% during 2009 to 45% during 2014.
Geographical segmentation and analysis of the sports and energy drinks market
North America dominated the market during 2014 with a market share of around 35%. The report anticipates this region to reach a market value of around USD 44 billion by the end of 2019. The rising number of people engaged in fitness activities is expected to increase the demand for sports drinks during the forecast period. During 2014, nearly 49% of the total population in the US was engaged in outdoor activities.
Competitive landscape and key vendors
The global sports and energy drinks market is dominated by the key players holding a big share of the market. The vendors in this market are concentrating on innovating new products to maintain their dominance. The market is witnessing the entry of private label brands that provide low-cost shaving products.
The leading vendors in the market are -
Other prominent vendors in the market 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.
Key questions answered in the report include
What will the market size and the growth rate be in 2019
What are the key factors driving the global sports and energy drinks market
What are the key market trends impacting the growth of the sports and energy drinks market
What are the challenges to market growth
Who are the key vendors in this market space
What are the market opportunities and threats faced by the vendors in the global sports and energy drinks market
Trending factors influencing the market shares of APAC, Europe, North America, and ROW
What are the key outcomes of the five forces analysis of the sports and energy drinks market
Technavio also offers customization on reports based on specific client requirement.
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