India Energy Drink Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The India Energy Drink market is projected to grow at a CAGR of 9.98% during the forecast period, 2022-2027.

COVID-19 has left many opportunities for many private players to emerge in the markets to cater to the inflated demand for energy drinks, which benefited the manufacturers of energy drinks. Due to the coronavirus pandemic, people had to spend more time at home, especially young people. Quarantine disrupted daily routine and caused changes in dietary habits. It has been reported that consumption of caffeine and energy drinks was found to be increased among young people who had more stress during e-exams and due to social isolation. The increased sales of energy drinks were observed through online stores during the lockdown, which sustained the demand for energy drinks in the market studied.

Over the medium term, the increased demand for energy boosters from the young population in parties and clubs is accelerating the demand for energy drinks in India. Increased urbanization, rising disposable income, and growing health consciousness among the Indian youth have increased the demand for non-carbonated drinks called energy drinks. At the same time, long and erratic working hours and the increasing occurrence of social gatherings are driving Indian consumers toward consuming energy drinks, which are primarily classified as non-alcoholic, caffeinated, and sports drinks. Over the past few years, the sale of energy drinks has been driven by changing consumer lifestyles and increasing demand for alcohol mixers.

Moreover, consumers have become more health conscious, which has increased the demand for functional beverages instead of non-carbonated ones, which provide high calories. Also, manufacturers have not shifted their focus from athletes, the primary target for energy drinks is two teenagers and young adults, which is widening the market and creating ample opportunities.

Scope of the Report

An energy drink is a beverage that typically contains large amounts of caffeine, added sugars, other additives, and legal stimulants and is intended to boost energy, alertness, and concentration. The energy drinks in the Indian market are composed of five different ingredients, which include vitamins, sugar, caffeine, Taurine, and Guarana. The other ingredients present in energy drinks are ginseng, yerba mate, water, green tea extracts, ginkgo biloba, green coffee extract, carnitine, sodium, potassium, magnesium, inositol, flavors, and benzoic acid. By Product Type, the market is segmented into Drinks, Shots, and Mixers. By distribution channel, the market is segmented into convenience stores, supermarkets/hypermarkets, mass merchandisers, drug stores, online retail, food service/ sports nutrition chain, and others. The report offers market size and forecasts in value (USD million) for the above segments.

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Key Market Trends

Increased Consumption of Packaged Soft Drinks

Although traditional and homemade drinks remain popular, the market for non-carbonated packaged drinks has gained huge popularity over the past two years. Various factors, like increasing disposable incomes and rising health consciousness, are leading to the growth in the demand for non-carbonated drinks. This growth enables industry players to concentrate more on health and energy drinks, thereby driving the energy drink market. In recent years, consumers have increasingly opted for naturally healthy, packaged foods and beverages associated with fortified/functional, organic, or better-for-you products, as these are perceived to offer essential natural nourishment, driving the packaged soft drinks segment of the Indian energy drink market.

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