Sports Drink Market - Growth, Trends, and Forecasts (2023 - 2028)

The sports drink market is projected to witness a CAGR of 4.45% over the next five years.

Consumers have become more active and are engaged in sports and athletic activities due to the prevalence of diseases like obesity, diabetes, blood pressure, and many more. In the older times, sports and energy drinks were only for athletes and sports personnel. But nowadays, consumers are seeking quick and convenient nutrition options. Due to the rising disposable income and increase in the working population, the demand for sports drinks and cans is growing. The shift in consumer trends is also encouraging sports drink manufacturers to evolve new products that meet consumer interest. The young population and baby boomers are very active in sports and fitness activities. According to the Physical Activity Council Report 2021, 64.4% of baby boomers and 70% of millennials in the US were involved in fitness sports in 2021.

Additionally, an increase in sales of products in different distribution channels like supermarkets, retail stores, and e-commerce sites is also driving market growth. In many developing countries, e-commerce is growing due to more product availability. It is why consumers are getting more options, offers, and discounts. For instance, in February 2021, products from Ready Nutrition, which makes protein-infused sports drinks, are launched in selected grocery stores in the US. The products will also be available on Amazon. Furthermore, an increase in advertising and promotional activities is surging the demand for sports drinks among young consumers.

Sports Drink Market Trends

Improved Athletic Performance

The market for functional beverages is increasing fast as consumers are paying more attention to staying healthy. In the developed markets, drinks are no longer viewed solely as a quick refreshment. However, they have become more convenient nutrient and food supplement products. The region is strongly influenced by consumer focus on protein, wellness, natural, and 'free from' trends. Due to this, market players are competing and launching new products to stay at the top of the market. For instance, in November 2021, The Coca-Cola Company announced the complete acquisition of New York-based energy drink company Bodyarmor to stay in the competition with PepsiCo Inc. Consumers are aware of the sports drink benefits, acting as refueling energy and hydrating the body after or before any exercise or sports activities. The consumer segments driving the market growth include aging consumers looking for vitality, millennials willing to try new products with wellness benefits, and busy consumers seeking convenient health options.

North America Leading the Market

The increased population involved in sports and physical activities is driving the sports drink market. Increasing concerns about health and fitness among the young generation are driving the market players to produce products with nutritional benefits and low-calorie products. Due to an increase in disposable income, and the trend of work-from-home culture, consumers are facing issues like high blood pressure, diabetes, obesity, and many more. Moreover, consumers' preference for health and energy drinks increased due to food habits and lifestyle changes. Due to the increase in sports and fitness activities in North America, market players are launching sports drinks with additional benefits like no sugar, low calorie, plant-based products. For instance, in May 2021, Gatorade, a PepsiCo Inc. brand, launched a new sports drink, "Gatorylyte." The new sports drink contains less sugar and more electrolyte and is available in cherry lime, orange, and strawberry kiwi flavors.

Sports Drink Market Competitor Analysis

The sports drink market is highly competitive, with PepsiCo Inc. and the Coca-Cola Company holding significant shares, among others. The key strategies adopted by the players in the market are expansions, innovations, and new product launches to maintain competitiveness in the market. The companies have been introducing new and innovative products with the inclusion of naturally derived ingredients and additives to make their products unique from the existing ones. Furthermore, mergers and acquisitions between companies are strengthening the market for betterment.

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