The U.S. energy drinks market size is expected to reach USD 26.93 billion by 2025, according to a new report by Grand View Research, Inc., progressing at a CAGR of 7.2% during the forecast period. Growing consumer awareness regarding health benefits of natural and organic drinks has been driving the market. Energy beverage consumption has turned into a status symbol, especially for youth. Such consumer behavior type is expected to drive further the overall market demand. Consumption of alcohol mixed with these energy beverages is quite popular in urban areas.
Energy
drinks have formed an integral part of social gatherings, parties, and
celebrations. Substitute’s availability is anticipated to provide a significant
threat to industry growth. Energy drinks face stiff competition from aerated
beverages, malted health drinks, and packaged juice.
Taurine
is another major component, which is essential for cardiovascular function and
skeletal muscle development. Energy drinks manufacturers claim that these
beverages reduce muscle fatigue, ease the mental process and protect heart
health. However, a scientific consensus is yet to be achieved to support these
statements. Increasing awareness of health consciousness is the key driver for
the growth in energy drinks demand.
Recent
trends show that most of the manufacturers create product awareness through
attractive advertising. These manufacturers sponsor major sports events. Red
Bull undertakes marketing campaigns in major football events and Formula 1 car
racing. They have been targeting the youth through extreme sports event.
Distinguished sports personalities are endorsed to promote the brand. This kind
of push strategy for increasing the global demand is very popular in energy
drink market.
The
non-organic segment was the leading revenue contributor in 2016. Due to high
initial market penetration and no specific focus on the target market, these
products are projected to aid the market. At the same time, people lack
awareness about the choice of products and these happen to be cheaper than
their counterparts. However, there has been a trend of organic substances based
products that have penetrated the market.
This
trend has also penetrated the energy drinks market. Since people are realizing
the importance of organic compounds in their consumption habits, this segment
is expected to aid its growth in the U.S., eventually will increase the growth
of organic energy drinks market exponentially over the forecast period.
Increasing disposable income and changing lifestyle of young population are
expected to trigger market growth of on-trade distribution channel over the
forecast period.
Increasing
demand for convenience beverage and changing lifestyle in the region like
workaholic culture, rising sports activities and increasing income are
attributed to the market growth. The growing urban class has been the most
attracting factor for the market growth in the U.S. The rising popularity of
sports in the country has a huge potential for promoting their brand and create
a sense of recognition and loyalty among the customer.
The
U.S. economy is undergoing a large-scale development. Due to this there is huge
demand for these energies enhancing drinks since they improve the performance
of the individuals and help them to deliver better results and impact
positively to the growth of U.S. energy drinks market over the forecast period.
For more info visit here: https://www.grandviewresearch.com/industry-analysis/us-energy-drinks-market
Further key
findings from the report suggest:
- The
non-organic segment is likely to reach USD 18.69 billion by 2025, at a
CAGR of 7.0% from 2017 to 2025
- In terms of
revenue, the organic segment is expected to expand at a CAGR of 11.6% over
the forecast period
- In terms of
revenue, the adult segment is poised to exhibit a CAGR of 7.7% over the
forecast period
- The on-trade
distribution channel market is projected to exceed USD 18.5 billion by
2025
- The off-trade
& direct selling segment is estimated to register a CAGR of 6.4% over
the forecast period
- The industry
is characterized by accreditation of the product, capacity expansion,
capital expansion, and substantial investment decisions to improve market
share. Some of the prominent companies are Red Bull GmbH, Monster Energy,
and Rockstar.
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Grand View Research has
segmented the U.S. energy drinks market on the basis of product, target
consumers, and distribution channel:
U.S. Energy Drinks
Product Outlook (Revenue, USD Billion, 2014 - 2025)
- Non-Organic Energy Drinks
- Organic Energy Drinks
- Natural Energy Drinks
U.S. Energy Drinks
Target Consumer Outlook (Revenue, USD Billion, 2014 - 2025)
- Teenagers & Kids
- Adults
- Geriatric Population
U.S. Energy Drinks
Distribution Channel Outlook (Revenue, USD Billion, 2014 - 2025)
- On-trade
- Off-trade & Direct Selling
About Grand View Research
Grand
View Research, Inc. is a U.S. based market research and consulting company,
registered in the State of California and headquartered in San Francisco. The
company provides syndicated research reports, customized research reports, and
consulting services. To help clients make informed business decisions, we offer
market intelligence studies ensuring relevant and fact-based research across a
range of industries, from technology to chemicals, materials and healthcare.
For more info visit @ https://www.grandviewresearch.com
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