A new report by Custom Market Insights (CMI) projects the global sports and energy drinks market to be valued at $150.22 billion by 2033, with a compound annual growth rate (CAGR) of 7.48% during that time. The sports and energy drinks market was valued at $67.94 billion in 2023, and is expected to reach $73.02 billion by the end of this year.
According to the CMI study, the market for sports and energy drinks is witnessing robust growth driven by rising consumer demand for functional beverages, fueled by lifestyle changes and fitness trends.
By region, North America led the global market in 2022 with a 36% market share and is expected to maintain its dominance during the next decade. Factors like increased female participation in fitness activities and the proliferation of fitness centers are contributing to North America’s growth. Europe, Asia-Pacific, and LAMEA regions also play significant roles in the market’s evolution, with emerging economies like India and China presenting growth opportunities.
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Sales in convenience stores and multi-outlet channels recently rose by 14.2% and 16.8%, respectively, while brands are also introducing healthier formulations to meet consumer preferences and improve market opportunities. For instance, the success of Celsius’ zero-sugar formulation led to a $550 million investment from PepsiCo in 2022. The report also indicates the global sports and energy drinks market is expanding its reach by targeting diverse demographics, as seen with Celsius and Red Bull’s focus on unique flavors and branding that appeal to younger consumers.
However, the report notes that challenges face the market on its growth trajectory. Increased scrutiny over ingredients like high caffeine and sugar levels can prompt regulatory investigations, and reinforce negative perceptions associated with energy and sports drinks, impacting market growth. Competitive pressures from other beverage categories can also hinder revenue growth opportunities over the next decade.
