The U.S. energy drinks market size is expected to reach USD 26.93 billion by 2025, according to a new report by Grand View Research, Inc., progressing at a CAGR of 7.2% during the forecast period. Growing consumer awareness regarding health benefits of natural and organic drinks has been driving the market. Energy beverage consumption has turned into a status symbol, especially for youth. Such consumer behavior type is expected to drive further the overall market demand. Consumption of alcohol mixed with these energy beverages is quite popular in urban areas.
Energy drinks have formed an integral part of social gatherings, parties, and celebrations. Substitute’s availability is anticipated to provide a significant threat to industry growth. Energy drinks face stiff competition from aerated beverages, malted health drinks, and packaged juice.
Taurine is another major component, which is essential for cardiovascular function and skeletal muscle development. Energy drinks manufacturers claim that these beverages reduce muscle fatigue, ease the mental process and protect heart health. However, a scientific consensus is yet to be achieved to support these statements. Increasing awareness of health consciousness is the key driver for the growth in energy drinks demand.
Recent trends show that most of the manufacturers create product awareness through attractive advertising. These manufacturers sponsor major sports events. Red Bull undertakes marketing campaigns in major football events and Formula 1 car racing. They have been targeting the youth through extreme sports event. Distinguished sports personalities are endorsed to promote the brand. This kind of push strategy for increasing the global demand is very popular in energy drink market.
The non-organic segment was the leading revenue contributor in 2016. Due to high initial market penetration and no specific focus on the target market, these products are projected to aid the market. At the same time, people lack awareness about the choice of products and these happen to be cheaper than their counterparts. However, there has been a trend of organic substances based products that have penetrated the market.
This trend has also penetrated the energy drinks market. Since people are realizing the importance of organic compounds in their consumption habits, this segment is expected to aid its growth in the U.S., eventually will increase the growth of organic energy drinks market exponentially over the forecast period. Increasing disposable income and changing lifestyle of young population are expected to trigger market growth of on-trade distribution channel over the forecast period.
Increasing demand for convenience beverage and changing lifestyle in the region like workaholic culture, rising sports activities and increasing income are attributed to the market growth. The growing urban class has been the most attracting factor for the market growth in the U.S. The rising popularity of sports in the country has a huge potential for promoting their brand and create a sense of recognition and loyalty among the customer.
The U.S. economy is undergoing a large-scale development. Due to this there is huge demand for these energies enhancing drinks since they improve the performance of the individuals and help them to deliver better results and impact positively to the growth of U.S. energy drinks market over the forecast period.
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Further key findings from the report suggest:
The non-organic segment is likely to reach USD 18.69 billion by 2025, at a CAGR of 7.0% from 2017 to 2025
In terms of revenue, the organic segment is expected to expand at a CAGR of 11.6% over the forecast period
In terms of revenue, the adult segment is poised to exhibit a CAGR of 7.7% over the forecast period
The on-trade distribution channel market is projected to exceed USD 18.5 billion by 2025
The off-trade & direct selling segment is estimated to register a CAGR of 6.4% over the forecast period
The industry is characterized by accreditation of the product, capacity expansion, capital expansion, and substantial investment decisions to improve market share. Some of the prominent companies are Red Bull GmbH, Monster Energy, and Rockstar.
Grand View Research has segmented the U.S. energy drinks market on the basis of product, target consumers, and distribution channel:
U.S. Energy Drinks Product Outlook (Revenue, USD Billion, 2014 - 2025)
Non-Organic Energy Drinks
Organic Energy Drinks
Natural Energy Drinks
U.S. Energy Drinks Target Consumer Outlook (Revenue, USD Billion, 2014 - 2025)
Teenagers & Kids
U.S. Energy Drinks Distribution Channel Outlook (Revenue, USD Billion, 2014 - 2025)
Off-trade & Direct Selling
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