Energy Drinks Market - Technological Breakthroughs Analysis in Next Few Years

Energy drinks fall under the category of functional beverages, which also includes sports and nutraceutical drinks. Sports drinks are generally consumed during exercise to avoid dehydration. Whereas nutraceutical beverages contains bioactive compound which helps to promote and enhance health. Energy drinks mainly comprises of high percentage of caffeine, sugar, other energy enhancing ingredient such as, herbal extracts, B vitamins, and taurin. It was initially introduced as a dietary supplement but further its features was enhanced to provide the consumer with sustained energy, and to reduce physical and mental fatigue. For the consumers energy drinks are offered in the form of shots, in powder, ready-to-drink (RTD). Among all these form ready-to-drink is mostly consumed by the consumers.1

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US Energy Drinks Market Segmentation

On the basis of type US energy drinks market is segmented as alcoholic and non-alcoholic energy drinks. Among both the segment currently alcoholic energy drinks account for the largest share as compared to non-alcoholic drinks in US. This is because in US the consumers are more prone towards alcoholic beverages. However, increasing consumer consciousness towards their health is expected to support the growth of non-alcoholic energy drinks in the country. Moreover, banning of alcoholic energy drinks across the country, by Food and Drug Administration (FDA) due to its adverse effect on health and increasing consumption by underage group is also expected to drive non-alcoholic energy drinks market in the country in forecast period.

The US energy drinks market can also be segmented on the basis of end use. This includes kids, teenagers, adults, and geriatric population. Among all these segments teenagers is expected to account for the highest market share in US energy drinks market followed by adults and kids. The growth of energy drinks market by teenagers in US is supported by the reason that energy drinks are highly consumed by athletes which mostly lie under the segment of teenagers and adults or under the age group of 16 years to 34 years. Moreover, most of the energy drinks manufacturer’s offerings and promotion are teenagers and adults oriented which is also expected to support the demand of energy drinks through this group.

Global energy drink market is expected to account for double digit growth by 2018. In 2012, North America accounted for the highest market share across the globe followed by Asia Pacific in Global energy drinks market. In North America region the US is expected to occupy the largest share of the pie followed by Canada in the forecast period. Approximately more than 300 varieties of energy drinks which represents approximately more than 200 brands are operating in US energy drink market which is expected to support the growth of US energy drinks market in the forecast period.

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US Energy Drinks Market Drivers

The consumer oriented advertisement coupled with availability of increased varieties of energy drinks across the country is driving the growth of US energy drinks market. In addition the strategic adoption of companies for promoting their product through cross promotional tactics such as integrating their product through sports events or advertising their product in connection with popular music icon is also supporting the growth of US energy drinks market. The young and aged group of people gets more attracted towards the product that bear the feature of providing fit and active lifestyle is expected to drive the US energy drinks market in the forecast period. Moreover, continuous launch of new product variant in the US such as low calorie or sugar free energy drink, or organic or natural energy drink is expected to attract more health conscious consumers and support the growth of energy drinks market in the forecast period.

US Energy Drinks Market: Key Players

The key international players operating in US energy drinks market includes Red Bull GmbH,Gatorade Company Inc,Monster Beverage Corp., Rockstar Inc., PepsiCo Inc, The Coca-Cola Company,Arizona Beverage Company and others.

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