Global Energy Ingredients Market - 2023-2030

Market Overview

The global energy ingredients market was valued at USD YY million in 2022. It is forecasted to reach USD YY million by 2030, growing at a CAGR of 7.2% during the forecast period (2023-2030).

An energy drink is a beverage category that typically contains caffeine and is promoted to provide mental and physical stimulation. It might be carbonated and include ingredients like taurine, sugar, other sweeteners, herbal extracts, and amino acids. Energy ingredients are substances added to foods and drinks to increase bodily energy. Rising demand for food products such as margarine, cold cuts, bakery products, spreads, yogurt, and milk sausages, which are produced using protein ingredients, and increasing consumption among health-conscious and elderly consumers are driving the market's growth.

Market Dynamics: The growing popularity of energy drinks owing to the production of instant energy

The growing popularity of energy drinks owing to their production of instant energy with mental and physical stimulation will help magnify the scope of the market. Increased urbanization, rising disposable incomes, and growing consumer health consciousness contribute to increased demand for non-carbonated beverages. Adolescents widely consume energy drinks due to their claims of improving performance, endurance, and alertness. At the same time, long and erratic working hours and the increasing occurrence of social gatherings drive consumers toward energy drinks. Hence, key manufacturers are launching drinks with caffeine as their main ingredient to support consumer health. For instance, in March 2021, PepsiCo Inc. introduced a line of energy drinks called "Mtn Dew Rise Energy," targeted at morning consumers. The drink was expected to be promoted by NBA superstar LeBron James. The new line is available in six flavors: pomegranate blue burst, orange breeze, strawberry melon spark, tropical sunrise, berry blitz, and peach mango dawn.

However, the potential for items containing illegal colors and additives, drug residues, industrial chemicals, undetected allergies, and heavy metals alarms consumers. Consumption of these residues could have harmful health effects, restricting the expansion of non-alcoholic beverages. These drinks are risky for people with diabetes because they include sugar, caffeine, taurine, and other ingredients that raise insulin levels.

Market Segmentation: The caffeine type segment accounted for the highest share in the global energy ingredient market

Caffeine is the most widely consumed psychoactive drug that acts as a stimulant for the central nervous system (CNS). Caffeine is widely utilized in food items and supplements as an active ingredient that helps to stimulate different body functions. It is an ingredient in several supplements, including dietary and health supplements, pre-workout powders, protein supplements, pills, and others. The growing trend of caffeine as a psychoactive stimulant in various beverages, including coffee, tea, soda, and energy drinks, is impacting the sales of products with caffeine as their main ingredient. According to the American Society of Nutrition, in April 2022, about 90% of adults in the U.S. consumed caffeinated products. Furthermore, caffeine enhances various aspects of mental, physical, and occupational performance, impacting the caffeine segment's growth in the energy ingredients market. For instance, in February 2022, in partnership with PepsiCo's North America Coffee JV, Starbucks Coffee Company launched Starbucks Baya Energy: RTD beverage using caffeine found naturally in coffee fruit alongside antioxidant vitamin C for a 'boost of feel-good energy.' Such launches with energy ingredients will propel the market in the forecast period.

Geographical Penetration: Europe is the dominating region during the forecast period

Energy beverages, including soft drinks, carbonated beverages, fruit and vegetable juices, beverage concentrates, ready-to-drink tea, and ready-to-drink coffee, are most regularly consumed in Europe. Soda consumption in the U.K. is declining, which has created a great opportunity for manufacturers, who are attempting to capitalize on the name recognition of their legacy brands by making a bigger dent in the growing energy drink category. In addition, the manufacturers are taking strategic initiatives to expand their distribution networks and boost their geographical presence. The rising trend of "nutrition declarations" on the package or label of the product will help attract consumers to these ingredients in the years to come. For instance, in May 2022, Prinova Europe launched a high-purity trehalose ingredient, Enduracarb, for athletic endurance. Slow-acting and double-sugar ingredients are designed to fuel muscles over long periods. Furthermore, benefits such as increased cognitive performance improved attention, and increased reaction speed, primarily due to caffeine, will support the market's growth. For instance, PepsiCo has launched a Rockstar Energy beverage with hemp seed extract. PepsiCo said that Rockstar Energy + Hemp contains caffeine, guarana, taurine, and an "intense" hemp taste. The new product was released on April 3, 2021, and is only available in Germany.

Competitive Landscape:

The market for energy ingredients is fragmented, with many developed global players and emerging key market entrants. These players engage in major acquisition and promotional activities to increase their customer base and brand loyalty. Some of the initiatives by the key players in the market are BASF SE, Spectrum Chemical Mfg. Corp., RFI Ingredients, Korea Ginseng Corporation, Orkla, ILHWA CO., LTD., Applied Food Sciences, Inc. (AFS), Naturalin Bio-Resources Co., Ltd., Changsha Huir Biological-Tech Co., Ltd. and Sinochem Pharmaceutical Co., Ltd. For instance, on May 15, 2022, Heineken Asia Pacific Beverages entered the energy drink market with Solar Power, which touts itself as using natural ingredients and giving a refreshing boost to everyday consumers. The brand told marketing-interactive that it had seen a growing demand for functional beverages within Asia Pacific. Consumers are seeking alternative beverages that offer health benefits beyond basic nutritional functions. On May 17, 2022, Nexba launched Natural Energy, the UK's first caffeine- and sugar-free energy drink, loaded with vitamins and prebiotics.

COVID-19 Impact: Positive impact on the global energy ingredients market

The COVID-19 pandemic has had a positive impact on market growth. Though the demand for the product was already rising, the market exploded after the COVID-19 pandemic hit the world. Increased concerns for health and convenience and the enhanced quality and diversity of these beverages are behind the increase in demand. After closing restaurants and bars in March 2020. The product's sales rose significantly through e-commerce channels due to stay-at-home orders worldwide. The COVID-19 pandemic has also increased consumer demand for healthier food options, which encourages consumers to consume goods containing caffeine-based energy components. In January 2021, 85% of Americans will drink at least one caffeinated beverage to improve focus and attentiveness during the COVID-19 quarantine, according to Med Alert Help. Additionally, new markets for energy ingredients have been created by the trend of consumers looking for healthy goods that are simple to adopt into their daily routines and lifestyles. For instance, on May 8, 2020, strength in international markets helped Monster Beverage Corp. deliver growth in the first quarter despite the adverse impact of the coronavirus (COVID-19) pandemic on new product launches in the United States. New products introduced included three Reign Inferno beverages, two Monster Ultra line extensions, a line of Java Monster 300, a line of Monster Hydro Super Sport, and NOS Turbo.

The global energy ingredients market report would provide access to approximately 77 market data tables, 74 figures and 170 pages