The global energy drink market is estimated to grow at a CAGR of 6.75%, attaining US$115.854 billion by 2030, from US$83.555 billion in 2025.
An energy drink is a functional beverage containing various stimulant compounds, including caffeine. Energy drinks help enhance the consumer's alertness and improve reaction time. They have also been found to help in improving the physical endurance of an individual, as stated by multiple studies conducted worldwide. The key ingredients of an energy drink include caffeine, taurine, vitamins, guarana, sugar, and antioxidants, among others. They block the effects of adenosine, a chemical that is responsible for sleep.
A rising number of athletes and people involved in high-octane sports are consuming energy drinks fortified with proteins and other recovery ingredients. These individuals need a quick replenishment of their energy levels to maintain their strength and muscles and boost their diminished energy levels, spurring the demand for these drinks. However, steps and measures are being taken by the UK government to prevent the consumption of energy drinks by younger individuals, as they pose threats to health and are a rising cause of health concerns, impacting the market's growth.
A major factor propelling the global energy drinks market growth is the increasing rate of urbanization worldwide. With the increasing urbanization and disposable income of the consumer, the demand for processed and premium products is expected to grow. The World Bank, in its global population report, stated that the total urban population was recorded at 4.46 billion in 2021, which increased to 4.54 billion in 2022. In 2023, the total urban population in the world was recorded at 4.61 billion.
The increasing global retail sales of food and beverage products are expected to propel the energy drinks market growth during the forecasted timeline. The global retail food and beverage products sales have witnessed significant growth over the past few years. The Department of Statistics of Singapore announced in December 2023 that total food and beverage retail sales increased by about 0.4% from the previous year. The agency stated that in December 2023, the total sales value of food and beverage retail sales was recorded at US$1 billion.
Similarly, Agriculture Canada, in its report, stated that in 2023, the total retail sales of packaged food products in Canada were recorded at CAN$77.6 billion. Dairy sales were recorded at CAN$16.6 billion in the total retail food sales, whereas the snacks category sales were recorded at CAN$6.6 billion.
A major challenge to the global energy drinks market growth is the increasing cases of diabetes and obesity worldwide. Various global research organizations in their studies stated that the high intake of energy drinks is expected to increase the risk of diabetes and obesity. These research institutes reported that energy drinks consist of high amounts of sugar and caffeine, which results in an increased risk of diabetes. Rising consumption of energy drinks also increases heart rate and blood pressure.
The cases of diabetes in the global market have witnessed significant growth in the past few years. The Centers for Disease Control and Prevention of the USA stated that between August 2021 and 2023, the total cases of diabetes in the nation were recorded at 15.8%, which consists of about 11.3% diagnosed individuals and 4.5% of undiagnosed diabetes cases in adults. The agency further stated that in 2023, about 35% of individuals in more than 23 states suffered from obesity.
The Asia Pacific region is expected to witness a significant increase in its market share over the forecast period, attributable to an influx of investment boosting the development of the food and beverage sector in countries such as India. Moreover, new players are entering the energy drink market to appeal to the tastes of younger consumers with healthy variants. The increasing demand for processed foods and beverage products is also expected to propel the regional energy drinks market.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Energy Drink Market Size in 2025 | US$83.555 billion |
| Energy Drink Market Size in 2030 | US$115.854 billion |
| Growth Rate | CAGR of 6.75% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Energy Drink Market |
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| Customization Scope | Free report customization with purchase |
The global energy drink market is segmented and analyzed as given below: