23 July 2019: Energy drinks falls under functional beverages which comprise nutraceutical and sports drinks. Sports drinks are usually consumed during a workout to avoid dehydration. Whereas nutraceutical beverages comprise bioactive compound that enhance and promote health. They include a high percentage of sugar, caffeine, another energy improving components such as B vitamins, taurine, and herbal extracts.
High demand for Non-Organic Type Segment to Accelerate the Product Growth
The major product type variants in the market include organic, non-organic, and natural. The non-organic product type sector is estimated to account for the largest share in the market and will continue its dominance over the forthcoming period on account of whose sales are higher due to their cost benefits against natural and organic energy drinks.
On the other hand, performance improvement from these drinks derives exclusively from caffeine and sugar and in tandem with additives for add-on characteristics. These products sometimes include high caffeine amount whose consumption can lead to common side effects such as panic attacks, anxiety, and irritability.
The non-organic segment will be followed by natural segment throughout the forecast period. Natural products are free of artificial flavors, chemicals, and preservatives. Furthermore, the caffeine used is also natural caffeine from green coffee, green tea with use of guarana or sugar, which is closely in natural state. Flavors and Sweeteners that are used are taken from juices.
Market Insights
Amway purchased XS energy brand that was co-founded by former Amway business owner. This was done to build opportunities for aspiring business people and to attract youth. Monster Energy acquired brands such as NOS, Burn, Full throttle, Mother, and Mutant among others. This has helped the company become the second largest player in the market.
Leading players operating in the U.S. energy drinks market include Monster Energy, Red Bull GmbH, Arizona Energy, NOS, Full Throttle, Amp, Xyience, and Rockstar.
Companies are merging and acquiring other players in the market to gain larger market share. This supports them to surge their customer base as well as product portfolio. It also helps them penetrate in diverse regions to surge their processes.
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