Increased product diversification in the energy drinks market is likely to see the sector register a 7% compound annual growth rate between 2020 and 2030, a new study by Future Market Insights (FMI) has found.
As the COVID-19 crisis subsides, consumers are likely to demand products with increased health and wellness benefits, which opens up opportunities for the energy drinks sector, the study concludes.
Purposeful Choices
'Consumers are determined to mark more purposeful choices with their buying power, purchasing with intention of creating positive and valuable experiences, which is supporting the expansion of the market,' it suggests.
This is likely to lead to increased development of functional energy drinks that contain natural ingredients, antioxidants, vitamins and minerals.
Europe is likely to lead the way in this regard, given that the region already has an established consumer demand for healthy beverage products.
Addressing Concerns
“Manufacturers in the market are expected to focus more on their offerings and make them healthier due to increasing concern about sugar content among consumers. Besides this, innovation in flavour is enabling growth in the flavoured drinks category of the energy drinks market," a report analyst explained.
An example of a product that could tap into this demand include PepsiCo's Propel Vitamin Boost, launched in April 2019, which contains daily recommended values of vitamin B3, B5, B6, C, and E, as well as electrolytes, and is available in three flavours.
Elsewhere, Monster Energy Beverages is offering Java Monster-Coffee + energy drinks, containing premium coffee and cream brewed with flavours and an 'instant energy' blend.
Established producers, including brands like Red Bull, Monster, Gatorade, PepsiCo, Suntory and Rockstar are also likely to form strategic alliances via acquisitions, mergers and partnerships.as they seek to develop their geographical footprint in the energy drinks market.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
