(I-BusinessNews.Com, May 24, 2021 ) U.S. Energy Drinks Market size is estimated to be $12 billion in 2019, growing at a CAGR of 6.7% during the forecast period 2020-2025. According to the U.S. Department of Health and Human Services, energy drinks are widely promoted as products that increase energy and enhance mental alertness and physical performance. Next to vitamins, energy drinks are the most common and popular dietary supplement consumed by American teens and young adults. Men between the ages of 18 years and 34 years consume the most energy drinks and almost one-third of teens between 12 and 17 years drink them regularly. Increasing awareness among consumers regarding nutritional benefits from Energy Drinks, rising demand of flavored & organic drinks, increasing preference of disposable cans is a significant factor driving the U.S. Energy Drinks Market during the forecast period 2020-2025. Apart from this, the rising demand of low sugar content in energy drinks have compelled manufactures to develop a variety of drinks which in turn has opened huge opportunities for the market growth. With a larger section of the employed population, the demand for convenience flavored energy drink is higher which is likely to boost the economic income of the U.S. Energy Drinks market in the coming years.
U.S. Energy Drinks Market Segment Analysis – By Product Type
By Product Type, the U.S. Energy Drinks Market is segmented into Drinks, Shots and Mixers. Among these the drinks accounted for the largest market share in 2019 owing to the increasing health-conscious population and the growing demand of flavored energy drinks across the region. Moreover, growing product innovation and development of sparkling Energy Drinks that are totally organic, nutrient packaged, tree-based hydration with naturally occurring electrolytes, prebiotics and no added sugar is driving market growth. In addition, it comes in three different flavors and its GMO, gluten and dairy free. These are the key benefits which are further driving the U.S. Energy Drinks market during the forecast period 2020-2025.
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U.S. Energy Drinks Market Segment Analysis – By Distribution Channel
Based on Distribution Channel, the U.S. Energy Drinks Market is segmented Supermarkets, Online Retail, Specialty Stores, and others. Among these, the supermarkets stores accounted for the largest share offering large number of energy drinks to its customers at a particular place. Moreover, according to the beverages. Com Daily carbonated soft drinks, energy drinks, sports drinks, juices, and tea are lumped together as packaged beverages and they come-in third for largest-in store convenience category with 15.3% of sales. Also, online retailers are projected to witness growth at fastest CAGR of 7.3% in forecast period 2020-2025 owing to the Covid-19 pandemic consumers are usually preferring buying energy drinks and other foods products through online retailers which in turn is contributing to its segmental growth.
U.S. Energy Drinks Market Drivers
Increasing Awareness Among Consumer Regarding Nutritional Benefits of Energy Drinks
Increasing awareness among consumers regarding nutritional benefits of energy drinks is a significant factor driving the U.S. Energy Drinks market during the forecast period 2020-2025. Moreover, energy drinks increase brain function, improves mood, and help fight cancer and heart disease, helps relieves arthritis pain and lower blood lipids. Besides this, the increasing demand of energy drinks among athletes is also contributing to the market growth. Growing developments and product launches by major players is a significant factor driving the U.S. Energy Drinks Market during the forecast period 2020-2025.
Cost-Effectiveness
Cost-effectiveness is a major factor driving the U.S. Energy Drinks Market during the forecast period 2020-2025. Changing lifestyle along with the growing health concern and hectic schedules of people around the world is further propelling its market growth. Moreover, the wide acclamation in celebratory events and household occasion there is a demand for drinks at affordable prices which is further contributing to its market growth.
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U.S. Energy Drinks Market Challenges
Alternatives of Energy Drinks
Some of the factors that may impede the growth of U.S. Energy Drinks Market during the forecast period 2020-2025 are alternative of Energy Drinks such as coconut water. Moreover, its cost is less than that of Energy Drinks and helps to fight against diabetes and high blood pressure which serves as a setback for the growth of U.S. Energy Drinks market during the forecast period 2020-2025.
U.S. Energy Drinks Market Industry Outlook
Product Launches, Merger & Acquisition, joint ventures and R&D activities are key strategies adopted by the players in U.S. Energy Drinks Market. U.S. Energy Drinks Market top 10 companies are Red Bull GmBH, Monster Beverage Corporation, Pepsico Inc., Rockstar Inc., Living Essentials, Keurig Dr Pepper Inc., Vitale Beverages, Goldwin Healthcare Pvt Ltd., Extreme Energy Drink, Bomb Beverage Company.
Acquisitions/Product Launches
April 2020: Pepsico has entered into an agreement to distribute bang energy in the U.S. after entering into a partnership deal with its manufacturer Vital Pharmaceuticals.
Key Takeaways
The drinks accounted for the largest market share in 2019 owing to the increasing health-conscious population and the growing demand of flavored energy drinks across the region.
The supermarkets stores accounted for the largest share offering large number of soft drinks to its customers at a particular place.
Increasing awareness among consumers regarding nutritional benefits of Energy Drinks is a significant factor driving the U.S. Energy Drinks market during the forecast period 2020-2025.
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