Grand View, while using 2021 as the base year for estimation, projected USD 91.94 billion as market size value in 2022, with a revenue forecast of USD 177.58 billion in 2023 and a growth  rate of 8.3% from 2022-2023 respectively.

The research analysis showed that the growing demand for energy drinks as a potential energy booster in  to improve physical and cognitive performance as market players. It alluded that brands are aggressively marketing these drinks as functional beverages while they have continued to shape the market growth as sugar free contents are presently gaining traction among consumers.

The report listed the following as some of the inducing factors responsible for the growth of the energy drink segment of the market. These include:

The data pointed COVID-19 pandemic as one of the stimulators for the growth of the energy drink segment.  It stated that though the demand for the product was already rising, the segment exploded after the COVID-19 pandemic hit the world, which accelerated the concerns for health and convenience.

The report suggested that the enhanced quality and diversity of these beverages are the factors behind the upsurge in demand.

Moreover, the study also attributed the growth to increasing awareness and increase in sports activities among the younger population and consumers’ focus from athletes to growing demand from young consumers for mental alertness.

Another propelling factor  boosting the growth  include the rate at which consumers prefer  energy drinks over other  types as it fulfills the demand for instant hydration and caters to offer significant nutrients for the well-functioning of the body.

Grand View Research in its finding also noted that continuous innovations in the product have bolstered the product demand. It further revealed that, the demand for convenience and RTD format  is  also driving the demand, where major brands are strategically responding to consumer demands and the products are experiencing a wider reach.

Taking a look at the product packaging insights, it attested that the cans segment held the largest revenue share of over 50.0% in 2021 and is expected to maintain its lead over the forecast period. It explained that consumers have become more sophisticated with their choices and taste and are hence increasingly opting for these beverages over canned wine and other alcoholic drinks.

On the other hand, it stated that the bottles segment is anticipated to expand at the second-highest CAGR over the forecast period.

The research body maintained that the rise in awareness regarding water and land pollution caused by beverages packaged in plastic bottles has led to an increased demand owing to the convenience they offer and rising awareness among consumers regarding the adverse impact of plastic bottles on the environment.

 Some of the notable brands include ‘Coca-Cola Energy cherry, and its zero-calorie counterparts, as PepsiCo. Inc. introduced a new line of energy drink – ‘Mtn Dew Rise Energy’, particularly targeted at morning consumers, Red Bull and many others.

According to Grand View, the drinks segment held the largest revenue share of over 50.0% in 2021 and is expected to maintain its lead over the forecast period.  Also, the study showed that the mixers segment is anticipated to witness considerable growth over the forecast period. The growing availability of the product as a mixer has been driving the segment.

The insights provided by the report showed that the conventional segment held the largest revenue share of over 60.0% in 2021 and is expected to maintain its lead over the forecast period. It pointed out that the lack of consumer awareness regarding organic products is expected to favor the growth of the conventional segment over the forecast period.

The insight indicated the fact the organic industry is still a fledgling industry, while noting that retailers tend to prefer conventional over organic drinks for a greater margin per square inch of shelf space they offer.

Analysing its distribution channel, the result revealed that the off-trade segment accounted for the largest revenue share of over 70.0% in 2021 and remains the primary source of consumption of the product.

Regional insights showed that North America held the largest revenue share of over 30.0% in 2021. The growing consumption of the product in the region is also attributed to the increase in disposable income, the emergence of several domestic brands, and the rise in marketing and promotional activities for product growth. North Americans consume more energy drinks than any other geographic market in the world owing to the changing demographics and consumers’ tastes and drinking habits. The globalization of markets and the migration phenomenon contributed to the modification of drinking patterns of consumers who were gradually introduced into their drinking habits. This, in turn, has opened new opportunities for market players to incorporate a variety of drinks into their portfolios.