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Natural Energy Drinks Market Overview, Features And Forecast

Natural Energy Drinks Market

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Energy drinks positioned itself from a niche product to one of the fastest growing products in recent times. Rising consumer awareness regarding health and wellness is one of the key factors aiding in the growth of the energy drinks market. However, the market for energy drinks is expected to be further driven by the introduction of natural energy drinks. Although they do not contain as many calories as compared to energy drinks, they are still a better choice compared to their artificial counterparts.

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The market for energy drinks expanded with its reach going beyond its intended consumers such as sportspersons and athletes and natural energy drinks are set to cater to widening consumer base. Although a niche product, natural energy drinks are expected to anticipate high CAGR growth during the forecast period.

Natural Energy Drinks Market

The inclusion of natural ingredients in energy drinks is one of the key factors fuelling the demand for this market at present. Although the major manufacturers of energy drinks such as Red Bull, Rockstar and Monster Beverage Corporation among others control the majority of the market, new players are increasingly coming up with clean energy sources that encourage the use of plant-based caffeine and other natural energy boosting ingredients. Owing to the rising demand for natural energy drinks among the consumers, U.S. witnessed the launch of more than 100 new energy drinks that were labeled as natural.

Further, natural energy drinks contain guarana seeds, yerba mate, ginseng and gingko biloba. Ginseng helps in stimulating physical and mental activity, thus being a suitable ingredient in natural energy drinks. Other benefits of ginseng include cognitive function, anti-inflammatory effects, and prevention of cancer among others. Thus the inclusion of such ingredients in natural energy drinks has proven to be beneficial to the human health, thus being a major factor for increased consumer preference, which in turn has shown a positive impact on the growth of the natural energy drinks market.

Natural Energy Drinks Market Growth and Demand

However, the low presence of these products across the globe is a major factor restraining the growth of the market. The penetration for natural energy drinks is quite low at present since these are considered as niche products. However, the impact of this restraint is expected to lessen by the end of the forecast period, owing to the rapid growth rate of this market. Further, major players such as Red Bull and Monster Beverage among others control the majority of the market which has made the competition for the manufacturers of natural energy drinks tough as it s highly difficult for them to penetrate this market. This is another major factor which is highly restraining the growth of the market. However, the impact of this restraint is also expected to subside by the end of the forecast period.

Aggressive promotional and marketing activities by the manufacturers of natural energy drinks would ensure their presence in the developing and underdeveloped markets, thus making it easier for them to address a broader consumer base. This factor is expected to pose as a suitable opportunity for the growth of this market in the future. Product innovation by the major manufacturers operating in the energy drinks market is another growth opportunity for this market. Owing to the increasing demand for natural energy drinks among the consumers, the major manufacturers would eventually resort to the manufacturing of natural energy drinks in order to cater to the changing requirements and preferences of the consumers.

Natural Energy Drinks Market Forecast

The market for natural energy drinks segmented on the basis of the distribution channel into online stores, supermarkets and hypermarkets, departmental stores and convenience stores among others. The rapidly increasing e-commerce industry would also complement the growth of natural energy drinks during the forecast period. Supermarkets and hypermarkets are expected to lead the market with a share of more than 55%.

As per market analyst natural energy drinks market will grow at a CAGR of almost 7.1% during the forecast period 2017-2021.

The market is also classified on the basis of end users into kids, adults and the geriatric population. Adults are expected to acquire the major market share throughout the forecast period. However, natural energy drinks are expected to gain popularity among the geriatric population as well.

Based on geography, the market is classified into North America, Europe, Asia Pacific, Middle East and Africa and Latin America. North America and Europe are the frontrunners for this market. However, Asia Pacific is projected to witness rapid growth during the forecast period.

The market for natural energy drinks will be valued at an approximate of USD 7 billion by 2021 However, this market is expected to witness the rapid growth of more than 7% during the forecast period. The rapid growth is mainly attributed to the high demand for natural ingredients infused energy drinks over their synthetic counterparts.

Dark Dog, Sambazon, Scheckter’s Organic are some of the key players operating in the field of natural energy drinks at present.

 

ShekharD

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