Energy Drink Market Size
| Study Period | 2017-2027 |
| Base Year For Estimation | 2022 |
| Forecast Data Period | 2023 - 2028 |
| Historical Data Period | 2018 - 2021 |
| CAGR | 9.98 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Energy Drink Market Analysis
The India energy drink market is projected to register a CAGR of 9.98% over the next five years.
- Energy drinks are gaining massive popularity among millennials due to aggressive marketing campaigns targeting young consumers. Moreover, advertisements promote energy drinks as drinks that ignite the mind, refresh the body, and enhance performance and stamina. Companies are investing more in identifying the market gap and building the brand image through existing ideas and concepts. Key players are also adopting innovative marketing and advertising approaches necessary to drive their products' sales.
- 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, energy drink sales have 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 still need to shift their focus from athletes; instead, teenagers and young adults are the primary energy drink market, expanding the industry and producing plenty of prospects.
Energy Drink Industry Segmentation
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 study focuses on B2C aspects of the market.
The India energy drink market is segmented by product type and distribution channel. Based on product type, the market is segmented into drinks, shots, and mixers. Based on distribution channels, the market is segmented into supermarkets/hypermarkets, convenience stores, pharmacies/health stores, online retail, and other distribution channels.
For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
| Product Type | |
| Drinks | |
| Shots | |
| Mixers |
| Distribution Channel | |
| Convenience Store | |
| Supermarket/Hypermarket | |
| Pharmacies/Health Stores | |
| Online Retail | |
| Other Distribution Channels |
Energy Drink Market Trends
This section covers the major market trends shaping the India Energy Drinks Market according to our research experts:
Increasing Expenditure on Advertising and Promotional Activities
- Millennials are becoming increasingly fascinated with energy drinks. Aggressive marketing activities, primarily targeted at young people, are the leading cause of its popularity. Additionally, energy drink marketing claims to energize the body, sharpen the mind, and improve performance and stamina, attracting more customers. Apart from promotional expenditure, endorsements and sponsorships are a few key factors influencing market growth. A significant number of key players’ promotional expenses result from payments under endorsement and sponsorship contracts.
- Major soft drink companies like PepsiCo and Coca-Cola entered the market for energy drinks to compete with industry leaders in India. In addition, some companies intentionally spend more on advertising to compete with the energy drinks Red Bull, Rockstar, and Monster.
- Additionally, increasing advertisement and promotional activities influence the demand for energy drinks from different consumer groups. Social media has become very influential in purchasing behavior of Indian consumers. Hence, the increasing promotions, including advertisements for energy drinks on various media channels, are gaining customers’ attention in the country.
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Convenience Stores Remains the Largest Market
- Convenience stores have low capital requirements when compared to supermarkets/ hypermarkets. Owing to the low capital required, the number of convenience stores in India is higher. The significant factors that make convenience stores the leading contributors to the sales of energy drinks are the low prices they offer compared to other offline sales channels and single-unit sales.
- Furthermore, these stores are located in convenient spots, close to the colonies, so the products are readily available to the nearby residents. This, in turn, increases the demand for products and sales from convenience stores. The market is growing significantly due to the rising demand for energy drinks products and the convenience associated with drinks products.
- Furthermore, energy drinks products' accessibility and nutritional profile are two key elements contributing to their continued growth in the modern market. Promotional offers, like everyday low-pricing strategy, buy one get one, and others, provided by several convenience stores further propel the sales of products.
Energy Drink Industry Overview
The Indian energy drink market is witnessing fast growth, which has led to fiery competition. Yet, the market is dominated by a few international brands. Some of the major players in the market are Red Bull GMBH, Goldwin Healthcare, Power Horse Energy Drinks GMBH, Monster Beverage Corporation, and Nutralite Health Care. Quality is not to be compromised, so companies are pricing the products low but promising quality to gain a significant market share. Red Bull is the giant dominating this market and continues its run as the leader. With energy drinks on the corner, athletes and fitness-freak consumers look forward to different flavors in the category. Companies with products in this segment are benefitting and developing strategies to continue holding their position by introducing new variants in the category, expansion, partnership, and mergers. For instance, in November 2021, Energy drinks maker Monster Corporation merged with international beverage alcohol company Constellation Brands Inc.
Energy Drink Market Leaders
Goldwin Healthcare
Power Horse Energy Drinks GMBH
Monster Beverage Corporation
Nutra like Health Care
Red Bull GMBH
*Disclaimer: Major Players sorted in no particular order
Energy Drink Market News
- February 2022: Red Bull India launched the new Red Edition with a refreshing taste of Watermelon, making it a perfect on-the-go drink.
- February 2022: PepsiCo India's energy drink Sting launched a new campaign that extends its 'Energy Bole Toh Sting' tagline in a new television commercial featuring brand ambassador Akshay Kumar. This campaign broadens the brand's reach, attracts youth, and encourages audiences.
- October 2021: Belgium-headquartered AB InBev, the world's largest brewer, launched 'Budweiser Beats in India. The energy drink is the first in any market from Budweiser.
Energy Drink Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porters Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Degree of Compettetion
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Drinks
5.1.2 Shots
5.1.3 Mixers
5.2 Distribution Channel
5.2.1 Convenience Store
5.2.2 Supermarket/Hypermarket
5.2.3 Pharmacies/Health Stores
5.2.4 Online Retail
5.2.5 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Market Share Analysis
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Red Bull GMBH
6.3.2 PepsiCo Inc
6.3.3 Monster Beverage Corporation
6.3.4 Amway
6.3.5 Coca-Cola
6.3.6 Goldwin Healthcare
6.3.7 Extreme Drinks Company
6.3.8 Nutra like Health Care
6.3.9 Power Horse Energy Drinks GmbH
6.3.10 Suntory Holdings
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Energy Drink Market Research FAQs
What is the current India Energy Drinks Market size?
The India Energy Drinks Market is projected to register a CAGR of 9.98% during the forecast period (2023-2027).
Who are the key players in India Energy Drinks Market?
Goldwin Healthcare, Power Horse Energy Drinks GMBH, Monster Beverage Corporation, Nutra like Health Care and Red Bull GMBH are the major companies operating in the India Energy Drinks Market.
Energy Drink in India Industry Report
Statistics for the 2023 Energy Drink in India market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Energy Drink in India analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Energy Drink Market in India Report Snapshots
