Caffeine Market - Global Industry Growth, Trends, and Forecast 2017 - 2025

Caffeine in pharmaceuticals is considered as a drug that acts as a stimulant for the central nervous system (CNS). It is one of the most widely used drug in the world and is known for containing psychoactive substances. It is a bitter substance containing white crystalline like purine, mostly methylxanthine alkaloid. They are found in seeds, nuts or even leaves of few plants that are said to be native of South America or East Asia. Usually, the main source of caffeine is said to be coffee beans. The main usage of caffeine is to prevent the consumer from drowsiness and improve their performance. Caffeine is found in many beverages like coffee, tea, cola among others and is heavily consumed by most adults globally. Consumption of 400grams of caffeine is safe for an adult but its consumption by adolescents must be limited to prevent from future illness.

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The caffeine market is facing a continued demand in the market globally. Many observational studies have proven time and again that there are certain positive and negative effects in the consumption of caffeine. However, consumption of caffeine in adequate amounts can cause increased concentration and also lower the risk of cardiovascular disease and diabetes. Heavy consumption of this product can have adverse effects like anxiety and frequent stimulation of urine. The procurement of caffeine is only in selected regions of the world and therefore the cost of the raw material is more and so is its labor cost. Certain genetic and withdrawal symptoms are also associated with its high consumption. However, consumption of coffee contains the maximum caffeine and is known to lower the risk of cancer. Nevertheless the growth of the market is moderate and is expected to grow due to the continuous consumption of beverages.

The caffeine market is segmented by product and by application. On the basis of product segment the caffeine market can be further divided into synthesis caffeine and natural caffeine. The natural caffeine is recently given much importance due to its presence in the coffee beans, tea and other such related products. Moreover, the synthesis caffeine contains raw materials like chloroacetic or cyanide acid. Furthermore, on the basis of applications the caffeine market can be segmented into food and beverages, pharmaceuticals, flavor and fragrance and others. Food and beverages is the highest growing sector in the caffeine market and is expected to grow during the forecast period. Application in pharmaceuticals and flavors considers a moderate growth and dignified research and development is taking place to boost the segment.

The caffeine market is a well-known ingredient and its organic sourcing is the latest trend in the market globally. North America, Europe, Asia- Pacific, Latin America, Middle East and Africa all grow and use caffeine. Owing to the rising demand of caffeine, manufacturers are spending on preparing better quality caffeine products. North America and Europe are the leading regions globally that are reported to heavily consume caffeine and its related products. Other regions like the Asia-Pacific, Latin America, Middle East and Africa are adopting the culture with reports of awareness related to health benefits. The strategic pricing of these caffeine products has attracted the customers with unique selling ideas andhave contributed massively in the beverage industry.

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The major players dominating the caffeine market are Shandong Xinhua, CSPC, Tianjin Zhong’an, Aarti Healthcare, Spectrum Chemical, Bakul Group, JiLinShulan, Taj Pharmaceuticals, Xicheng Pharmaceutical and BASFare a few among other leading producers of caffeine in the world. Some of the key strategies adopted by these players include mergers and acquisitions, joint venture and partnerships, and geographical expansions among others in order to ensure long terms sustenance in the field of caffeine.

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