Cleveland OH, September 11, 2023 – Energy and sports drinks are the largest segment of the functional beverage market with over half of functional beverage sales in 2023.
Energy drinks purport to provide functional benefits including increased energy and boosts in cognitive function/brain activity. They contain stimulant ingredients, typically caffeine, and claim to provide mental and physical energy. Some of these beverages are carbonated or sweetened, and they tend to contain other functional ingredients such as taurine, guarana, panax, L-carnitine, and ginseng for energy and focus.
Sports drinks are used for enhanced hydration and sports performance. These products typically contain electrolytes, and they are made to hydrate efficiently before, during, or after exercising. They tend to contain salt, minerals, and sometimes sugar to help replenish the body’s natural concentration of these substances.
Energy and sports drinks have a more mature market than many other functional beverages. Some of the top sports and energy drink brands (e.g., Gatorade, Powerade, Red Bull) have been marketed for decades, although there is still room for expansion in these product segments. Unlike other functional beverages, traditional versions of energy drinks and sports drinks may not have an especially healthy perception among consumers due to concerns about added sugar content, energy crashes, or lack of nutritional value.
Many newer introductions to the market go beyond traditional formulations and have better-for-you claims compared to standard energy and sports drink formulations to address the desire for products that are more healthy or have additional functional features.
Packaged Facts’ May 2023 National Online Consumer Survey indicates that the core market for energy and sports drinks is the 18-44 age demographic, though opportunities exist to interest older consumers in these beverages. Healthier formulations have greater appeal to those age 45 and up. Consumers age 65+ may be interested in energy and sports drinks that address age-related health concerns such as joint health and cognitive decline.
According to Packaged Facts’ new report
Energy & Sports Drinks: US Market Trends & Opportunities, sales of energy and sports drinks posted robust gains from 2020 to 2022. Volumes were buoyed by increased consumer awareness and adoption, faster than average grocery sales, and new product introductions, while average prices rose due to both inflation and premiumization. The US energy and sports drink market is projected to continue growing, reaching $45.9 billion in 2027.
This Packaged Facts report analyzes the dynamics of the current landscape of the sports and energy drink market. Consumer demographics, perceptions, motivations, and behavior pertaining to sports and energy drinks and attitudes on food, diet, health, and product packaging are taken into account. Effects of the COVID-19 pandemic on consumers are also analyzed in a broad sense, as well as in the context of buying/using sports and energy drinks.
Energy drinks are segmented by the following product forms:
- Ready-to-drink (RTD) full size
- Shots
- Mixes (including beverage powders and liquid concentrates)
Sports drinks are segmented by the following product forms:
- Ready-to-drink
- Mixes (including beverage powders and liquid concentrates)
This report includes sales of the above items from:
- Grocery stores, supermarkets, and discount grocers (e.g., Kroger, Safeway, ALDI)
- Mass merchandisers (e.g., Walmart, Target, Meijer) and warehouse clubs (e.g., Costco, Sam’s Club, BJ’s)
- Convenience stores (e.g., Pilot/Flying J, Circle K, 7-Eleven) and dollar stores (e.g., Dollar General, Family Dollar)
- Other retailers, such as gift stores
- All online outlets, including online-based grocers (e.g., Amazon, Thrive Market, FreshDirect), third-party pack-and-deliver companies that use their own workforces to purchase groceries at various stores and deliver them to customers (e.g., Instacart), brands that sell their own food products via their websites, direct-to-consumer, and online sales from websites or apps of retailers in the previous categories
Historical numbers for the retail sports and energy drink market are provided from 2017 through 2022. Market forecasts are provided from 2023 through 2027.
Additionally, the percentage of energy drinks sales that are single-serving size packaging vs. multipacks and multi-serving sizes are provided for 2023. The percentage of sports drinks sales that are single-serving size packaging vs. multipacks and multi-serving sizes are also provided for 2023.
The reasons for and implications of shifts in consumer perception and behavior are analyzed in the context of future market opportunities.
The report has dozens of tables showcasing numerical survey data on consumer demographics and psychographics and numerous marketing photographs. This report goes in-depth on COVID-19 and inflation trends that have affected the food and beverage market.
For more information, see the
Energy & Sports Drinks: US Market Trends & Opportunities report page.
Particular attention is dedicated to the market impact of e-commerce and the coronavirus pandemic.
About Packaged Facts
Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, the food and beverage market, consumer financial products and services, consumer goods and retailing, and pet products and services. Packaged Facts also offers a full range of custom research services. Reports can be purchased at our company website and are also available through MarketResearch.com.
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SOURCE Packaged Facts