The energy drink market is in a state of evolution, maturation, and continued expansion. Mordor Intelligence forecasts a robust Compound Annual Growth Rate (CAGR) of 7.1% for the global energy drinks market during the period of 2020 to 2025.
What are the driving forces behind this growth, and what can we expect from the next wave of energy drinks?Lets read more below
How have energy drinks transformed over the past five years?
Over the past decade, the landscape of energy drinks has undergone significant changes. From their origins as loud, extreme beverages, they have transitioned to embrace a more natural, health-conscious image. Presently, we witness the emergence of a new category known as premium, high-performance energy drinks, experiencing growth rates unseen since the early 2000s.
Energy Drink Evolution in 2020
A noteworthy trend is the demand for "grown-up" energy among maturing millennials, the primary consumer demographic for energy products. As these consumers shift toward healthier, more mature lifestyles, their beverage choices reflect this transition. Consequently, there is a growing emphasis on natural, free-from, and clean label attributes within the energy drink sector.
While conventional energy drinks exhibit relatively stagnant growth rates of 1.8%, natural and organic variants are experiencing a remarkable surge at 16.2%. Within this segment, organic beverages took the lead in 2018 and would have continued their dominance if not for the emergence of premium, performance-focused energy drinks.
This new breed of energy drinks, termed "Premium, Performance Energy," has captured significant market share, with brands like Bang, Monster's Reign, and C4 witnessing explosive growth, some exceeding 400%. Notably, Bang alone surged from $345 million in sales in spring 2019 to a staggering $1.1 billion within a year. However, the true potential lies in further exploration within this category.
Why is the esports demographic attractive to beverage manufacturers?
Esports represent a formidable demographic with substantial influence and purchasing power. Contrary to popular belief, gaming transcends age boundaries, with a significant portion of gamers aged over 34, and nearly half of them being parents. Moreover, male gamers aged 21-35, who are most likely to consume food and beverages while gaming, form a lucrative consumer segment.
The allure of esports extends beyond gaming itself, as millions tune in to watch gameplay on platforms like YouTube and Twitch. This presents unparalleled opportunities for brand exposure, with gamers engaging in extended gameplay sessions, providing ample occasions for beverage consumption.
How does one select ingredients and highlight their beneficial properties?
Esports enthusiasts seek beverages tailored to enhance focus, concentration, energy, eye health, relaxation, reflexes, and memory recall. Aligning with these functional needs presents an opportunity for crossover appeal beyond the gaming community.
Innovations in esports beverages prioritize both performance enhancement and consumer experience. From textured cans for better grip to resealable tops for extended use, product design complements ingredient efficacy. For ingredient suppliers like us, organic caffeine solutions such as PurCaf® and PurTea® serve as ideal choices, aligning with clean label expectations and delivering premium energy impact. Additionally, AmaTea®, our organic guayusa extract, stands out for its unique blend of caffeine and polyphenol antioxidants, contributing to cognitive performance enhancement.
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