Young Aged Population Steering Market Growth
Energy drinks has widely emerged as a popular beverage among young aged population. The product is not only considered as a mere beverage among the young crowd but also contemplated as status symbol in the aforementioned age category. Owing to such consumer behavior the market for energy drinks is likely to observe steady growth over the forecast period.
The increasing population of young aged individuals between 15 to 24 years is likely to witness sturdy growth over the coming years. As per the stats released by the United Nations in 2019, the global young aged population is expected to grow from 1.2 billion to 1.3 billion from 2019 to 2030. In addition, this growth is likely to remain prominent in regions such as Africa which is projected to observe a massive growth of nearly 89% by 2050 as per the stats released by United Nations. Therefore, rising young aged individuals is likely to steer the market growth for energy drinks over the forecast period.
Increasing Marketing Acitivites Related to Sports is Promoting Market Growth
The key participants of the industry has widely used the marketing tool to promote their product in the market. The product of energy drink since its inception is largely influenced by adventure sports. Owing to the higher viewership of adventure sports among young aged population has greatly steered the market growth. Vendors of the industry capitalized on this trend by promoting and sponsoring these adventure sports event in order to enhance their market visibility.
The top players of the market including Red Bull and Monster Energy widely sponsor sports event. Red Bull which is the market leader of this industry sponsors adventure sports, formula one racing, football events and many more. The rising expense towards marketing campaign has widely promoted the usage of energy drinks among young population.
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On the basis of product, the market is bifurcated into organic, non-organic, and natural. Among this category, non-organic segment is expected to dominate the market share over the forecast period. The product segment has observed significant growth among the consumer masses due to earlier inception as compared to its counterparts.
Organic and natural product segment is likely to observe swift growth rates over the coming years. The rising consumer awareness towards dietary habits coupled with increasing scrutiny by regulatory bodies on caffeine consumption is expected to aid segments growth over the coming years.
Target Consumer Outlook
On the basis of target consumer, market is bifurcated into adults and teenagers. Within this category, adult consumer segment is expected to dominate the market share while observation swift growth rates over the predicted timeline. The hectic worklife coupled with challenging work environment is expected to push products demand among adult individuals over the coming years.
Teenager consumer segment is likely to witness steady growth rates owing to the rising popularity of the product as a status symbol. However, the penetration among this consumer segment is likely to remain slow due to the rising scrutiny by regulatory bodies around the globe.
Distribution Channel Outlook
On the basis of distribution channel, market is segmented into supermarkets/hypermarkets, convenience stores, online channel, and others. Within this category, supermarkets/hypermarkets is likely to witness steady growth over the forecast period. The consumer inclination towards seeing the product before buying is likely to fuel the segments growth over the forecast period.
The online channel is expected to observe steady growth as compared to its counterparts. The segment is witnessing direct collaboration with market players in order to fix specific distribution network.
The key vendors of the industry are Amway Global, Taisho Pharmaceutical Co. Ltd., Coca Cola, Rockstar Inc., PepsiCo Inc., Monster Energy, and Red Bull GmbH. The market participants are increasingly focused towards developing health effective products in order to capture larger consumer segment and enhance industry presence.
The industry vendors are also forming mergers to effectively create network of distributors. For instance, Coca Cola has joined hands with Monster Energy by transferring all its energy drink brands to the latter. Coca Cola also purchased 16.7% of the equity in Monster Energy for nearly USD 2.1 billion in 2019.
The product is defined as the beverage consisting of stimulating compounds such as caffeine and is marketed as a product offering physical and mental stimulation.
Global Energy Drinks Market Segmentation
By Target Consumer
By Distribution Channel