Caffeine Market By TYPE (SYNTHESIZED CAFFEINE, NATURAL CAFFEINE), By APPLICATION (FOOD, BEVERAGE, PHARMACEUTICAL, COSMETICS and PERSONAL CARE, NUTRACEUTICAL): Global Opportunity Analysis and Industry Forecast, 2021-2031
The caffeine market size was $715.2 million in 2021 and is estimated to reach $ 1,194 million by 2031, registering a CAGR of 5.2% from 2022 to 2031. Caffeine is an alkaloid compound that is found especially in coffee, guarana, tea, cocoa, guayusa, yaupon holly, and other plants and is a stimulant of the central nervous system as well as acts as a psychoactive drug. Caffeine is a white crystalline purine, mostly a methylxanthine alkaloid with a bitter taste. There are two types of caffeine available in the market such as natural and synthesized caffeine, which are derived from natural and synthetic sources. Commercially natural caffeine is obtained from decaffeinated coffee and tea by extraction using a solvent. Synthetic caffeine is produced from synthetic sources such as urea and chloroacetic acid.
Energy drink manufacturers such as Red bull Inc., Monster Beverages Corporation, The Coca-Cola Company, and others use aggressive marketing campaigns to capture the major share. They majorly target adventurous sports and events such as snowboarding, motorbike sports, and water sports. This creates awareness among consumers and viewers about the energy drink and its health benefits. In addition, these players are launching products with various flavors and tastes to attract a huge customer base, thus the increasing penetration of the sports nutrition industry is expected to create more opportunities for key players in the caffeine market in the upcoming years.
Excessive caffeine consumption has undesirable side effects, including anxiety, sleeplessness, headaches, nausea, and dizziness. Consumers opted out of healthier caffeinated alternatives as a result of these adverse consequences. There is different caffeine substitutes are available in the market such as ginseng, pomegranate juice, maca, baobab, reishi, and others. According to the FDA, 400 mg of caffeine per day, or about 4 or 5 cups of coffee, is usually not harmful or dangerous for healthy adults, but exceeding this limit can have adverse effects. Furthermore, the key players in the food & beverages industry are focusing on research and development to produce an innovative ingredient that may replace caffeine in food & beverage products. excessive consumption of caffeine can cause adverse health effects, which are expected to hinder the growth of the caffeine market.
According to the market analysis, the global caffeine market is segmented into type, application, and region. Based on type, the market is divided into synthesized caffeine and natural caffeine. By application, the market is divided into food, beverages, pharmaceutical, cosmetics and personal care, and nutraceutical. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, Italy, Spain, UK, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, Indonesia, Thailand, and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, UAE, Argentina, and rest of LAMEA).
By type, the market is bifurcated into synthesized caffeine and natural caffeine. The synthetic caffeine segment constitutes a major caffeine market share. This is attributed to increase in the demand for synthetic caffeine has increased owing to the increase in population. Overproduction of caffeine helps to lower the cost; the dependency of various industries on caffeine has increased extensively. Caffeine is one of the major ingredients used in energy drinks, cola, and other caffeinated beverages. Synthetic caffeine is widely used in the pharmaceutical and nutraceutical industry as ingredient. Especially in Asia-Pacific, the demand for synthetic caffeine is anticipated to increase during the forecast period, owing to its high purchasing power.
By application, the pharmaceutical segment dominated the global market and is expected to retain its dominance during the caffeine market forecast period. Majority of the caffeine is utilized in the pharmaceutical industry. Rise in awareness regarding health benefits associated with caffeine consumption is expected to propel the growth of the caffeine market. The caffeine market in LAMEA is anticipated to grow with a CAGR of 6.4% between 2022 and 2031, while the Asia-Pacific market is anticipated to witness a CAGR of 5.8%.
By region, Europe region dominated the global market and is expected to retain its dominance during the caffeine market forecast period. Germany is the leading market in Europe and is also expected to be the fastest growing market. The consumption of caffeine by end-user industries is increasing at a significant rate in Europe, owing to a rise in awareness regarding the health benefits of caffeine among consumers. Europe operates as a single market with 28 countries and is tagged as the major trading power. Furthermore, an increase in product diversification in the category of food & beverages and the development of natural caffeine is expected to propel the demand for caffeine in the upcoming years.
The impact of the COVID-19 outbreak was moderate for the growth of the global caffeine market. The trade restrictions and lockdown resulted in the halting of production and manufacturing units. The recovery of the caffeine market is expected in near future.
The players in the caffeine market have adopted acquisition, business expansion, partnership, collaboration, and product launch as their key development strategies to increase profitability and improve their position in the caffeine market. Some of the key players profiled in the caffeine market analysis Aarti Industries Limited, BASF SE, Caesar & Loretz GmbH, CSPC Pharmaceutical Group Limited., Jilin Province Synthetic Pharmaceutical Co., Ltd., JoinTown Pharmaceutical Group Co., Ltd., Ravago Group, Shandong Xinhua Pharmaceutical Co., Ltd., Spectrum Laboratory Products, Inc., and Taj Pharma Group
Key Benefits For Stakeholders
This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the caffeine market analysis from 2021 to 2031 to identify the prevailing caffeine market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the caffeine market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global caffeine market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By APPLICATION
FOOD
BEVERAGE
PHARMACEUTICAL
COSMETICS and PERSONAL CARE
NUTRACEUTICAL
By TYPE
SYNTHESIZED CAFFEINE
NATURAL CAFFEINE
By Region
North America
U.S.
Canada
Mexico
Europe
Germany
France
Italy
Spain
UK
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Indonesia
Thailand
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
UAE
Argentina
Rest of LAMEA
Key Market Players
JoinTown Pharmaceutical Group Co., Ltd.
Spectrum Laboratory Products, Inc.
Taj Pharma Group
CSPC Pharmaceutical Group Limited.
Caesar & Loretz GmbH
Ravago Group
Aarti Industries Limited
BASF SE
Shandong Xinhua Pharmaceutical Co., Ltd.
Jilin Province Synthetic Pharmaceutical Co., Ltd.
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