India Energy Drink Market Size, Share & Analysis [2031]

Report Description

The India energy drink market size was around USD 2.609 Billion in 2022 and is likely to reach USD 4.145 Billion by 2031, expanding at a CAGR of 5.6% during the forecast period, 2023–2031. The market growth is attributed to the rising demand for energy boosters from the young population in parties and clubs.

An energy drink is a part of the soft drink category, which contains a large amount of caffeine, added sugar, amino acids, and other stimulant compounds, such as taurine, guarana, and L-carnitine. It is a healthy alternative to carbonated soft drinks. It includes carbonated beverages, sports drinks, bottled water, fruit & vegetable juices, beverage concentrates, and ready-to-drink tea and coffee.

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Energy drink is a non-alcoholic beverage that is distinguished from sports drinks, which are widely used to replace water and electrolytes. It typically consumes during or after sporting activities to relieve fatigue. Some energy drinks contain food additives, which are marketed as dietary supplements. Stimulant compounds present in energy drinks increase energy and enhance mental alertness and physical performance. Furthermore, it can elevate breathing, heart rate, and blood pressure and can lead to dehydration.

The COVID-19 pandemic positively impacted on the India energy drink market. Adoption of energy drinks increased during the pandemic, due to the rising awareness regarding the necessity of having good health conditions and immunity among the population.

Energy Drink Market Dynamics

The India energy drink market report has up-to-date insights that help in formulating a strategic roadmap about the estimated market scenario and performance during 2023 to 2031.

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Trends

Growing adoption of low-sugar or sugar-free products is a major market trend. consumers are becoming more aware of the importance of a healthy diet due to the prevalence of diabetes and other chronic diseases. Thus, the consumer starts preferring natural sweeteners in their beverages.

Drivers

Rising demand for functional beverages is a major factor driving the growth of the market. Functional drinks provide health benefits beyond their nutritional value. Thus, the rising health-conscious population across the globe boosts the market growth.

Increasing consumers’ disposable income is another major factor driving the market growth. Rising disposable income led to an increase in spending on discretionary items, such as packaged and ready-to-eat food and ready-to-drink beverages. Moreover, consumers’ expenditure on lifestyle and well-being activities has increased, which demands for ready-to-drink beverages.

Restraints

Lack of awareness regarding the nutritional benefits offered by energy drinks, especially in rural areas is expected to hamper the overall revenue growth of the market during the projected period.

Rising health concerns regarding the consumption of energy drinks hinder the market growth during the projected. Energy drinks contain caffeine and high consumption of caffeine may increase the risk of a wide range of health problems, such as diabetes, poor mental health, heart palpitation, dehydration, tooth decay, substance abuse, high blood pressure, and kidney damage, which restraints the growth of the market at a certain limit.

Opportunities

Increasing inclination toward fitness activities is expected to create immense growth opportunities in the market. Spending on body fitness among the young generation has increased due to the trend of bodybuilding. Thus, the demand for sports drinks raised among bodybuilders and athletes to get an instant burst of energy.

Scope of Energy Drink Market Report

The India energy drink market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Energy Drink Market Segment Insights

On the basis of type, the India energy drink market is bifurcated into caffeinated and de-caffeinated. The caffeinated segment held a key share of the market in 2021 and is expected to generate a major revenue share during the projected period, as it is the most commonly used product in energy drinks due to its stimulant nature, which increases alertness and energy. Rising demand for instant energy and hydration drink among athletes and working professionals fuels the market growth.

The de-caffeinated segment is expected to expand at a significant growth rate during the projection period due to the growing awareness among consumers regarding the high consumption of caffeine. The segment growth is further attributed to the increasing health-conscious population across the globe.

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Based on product, the market is segmented into drinks, shots, and mixers. The drinks segment is anticipated to account for a key market share during the forecast period. It re-hydrate the body and improves stamina and energy level. Increasing preference for drinks among teens and young adults is expected to propel the market growth. In recent years, consumers have increasingly opted for healthy, and packaged foods and beverages that are considered fortified/functional, organic, or better-for-you products.

The shots segment is expected to grow at a rapid pace in the coming years. Shots are specialized energy drinks, which contain the same amount of caffeine in a small amount of liquid. Shots are widely used as mood elevators. Increasing demand for strong energy boosters from the young population boosts the market growth.

On the basis of target consumer, the India energy drink market is fragmented into teenagers, adults, and the geriatric population. The adults segment is projected to register a considerable CAGR during the assessment period due to the rising consumption of energy drinks by working adults. On the other hand, the teenagers segment is expected to expand at a significant pace due to the growing influence of western culture.

As per health experts, energy drinks are the most popular supplements among teens and young adults. Therefore, it is widely promoted as an energy booster. According to a study, men between 18 and 34 years consume the most energy drinks and around 30% of teens consume them on a daily basis.

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Based on distribution channel, the market is segregated into online and offline. The online segment is further classified as company websites and e-commerce websites. The offline segment is further divided into convenience stores, supermarkets/hypermarkets, specialty stores, pharmacy stores, mass merchandisers, and others.

The offline segment is expected to register a robust growth rate during the forecast period due to the ease of accessibility and the expansion of convenience stores in India. Furthermore, growing consumer preference towards hypermarkets and supermarkets, due to organized shelves for every product in the store. Increasing trend of smart stores is further boosting the segment growth in the market.