Global Anhydrous Caffeine Market - 2023-2030
Global Anhydrous Caffeine Market reached US$ 1.3 billion in 2022 and is expected to reach US$ 2.6 billion by 2030, growing with a CAGR of 8.3% during the forecast period 2023-2030.
Anhydrous caffeine can provide a temporary boost in energy, alertness and cognitive function due its stimulant properties. As people have become more focused on productivity and mental clarity, the demand for products containing anhydrous caffeine has increased. Anhydrous caffeine is commonly used for pre-workout supplements and sports performance products. It also increases metabolism which is popularly used by athletes and fitness enthusiasts.
Caffeine is often used as a supplement in weight loss and fat-burning because it is used to increase metabolic rate and promote fat oxidation. Globally weight management and fitness have risen so the demand for products containing anhydrous caffeine also increases. It is incorporated with various food and beverage products like energy drinks, coffee-flavored snacks and functional beverages.
Asia-Pacific is among the growing regions in the global anhydrous caffeine market covering more than 1/3rd of the market and the region has rising awareness about the benefits of caffeine like it improves alertness and cognitive performance, which is driving demand for products that contain anhydrous caffeine. Nowadays consumers becoming more health-conscious and seek products that enhance their overall well-being, the demand for caffeinated products like energy drinks, dietary supplements and functional foods is on the rise.
Dynamics
Increasing Consumption of Energy Drinks
The increasing consumption of energy drinks is expected to have a positive impact on the growth of anhydrous caffeine manufacturers and their products. Energy drinks have become a popular choice for consumers seeking a quick energy boost and improved alertness and anhydrous caffeine is a key ingredient in these beverages. Energy drinks often contain caffeine as a primary ingredient to provide the desired stimulating effects.
For instance, on 25 January 2022, Starbucks is making its debut in the energy drink category with Starbucks BAYA Energy, a ready-to-drink beverage. Crafted from caffeine naturally found in coffee fruit and fortified with antioxidant vitamin C for immune support, Starbucks BAYA Energy offers consumers a boost of feel-good energy and this new product was developed through the collaboration of Starbucks and PepsiCo's North American Coffee Partnership, which focuses on creating RTD coffee and energy products.
Collaboration Between Companies Boost the Market
Collaboration allows companies to increase their research and development efforts, which leads to the creation of new and improved products. Companies combine their scientific expertise to develop innovative formulations, extraction methods and applications for anhydrous caffeine. Collaborative efforts can result in the development of a wider range of anhydrous caffeine products, catering to different consumer preferences and market segments and this diversification can help companies capture new customers and expand their market presence.
For instance, on 27 July 2021, Nestlé and Starbucks Corporation announced a collaborative effort to introduce Starbucks Ready-to-Drink coffee beverages to specific markets in Southeast Asia, Oceania and Latin America. The partnership aims to bring these coffee products to consumers by 2022. Nestle plans to expand its presence in the RTD coffee sector capitalizing on growth opportunities and appealing to a rapidly developing consumer base particularly younger demographics.
Technology Advancement
Technological improvements in extraction and purification processes have led to higher yields of anhydrous caffeine from coffee beans and other sources. Advanced extraction methods, such as supercritical fluid extraction and selective adsorption enable more efficient separation of caffeine from raw materials. Innovations in sustainable and green technologies are influencing the anhydrous caffeine industry. Environmentally friendly extraction methods such as water-based processes reduce the use of solvents and minimize environmental impact.
For instance, on 16 March 2023, according to Starbucks news stories, Starbucks is introducing cutting-edge coffee brewing equipment, including the Mastrena II espresso machines and the new Starbucks Cold Brewer and these new machines offer industry-leading technology to ensure high-quality coffee beverages and streamline the brewing process. Starbucks is extending its commitment to partner safety through programs like Starbucks Safety Lyft and this initiative provides rides home for partners working late shifts, ensuring their security and well-being.
Excessive Consumption of Anhydrous Caffeine has Risen Health Concerns
Due to its stimulant properties, anhydrous caffeine is misused or abused by individuals seeking its energizing effects. Overconsumption of anhydrous caffeine in excessive amounts results in increased caffeine toxicity, leading to symptoms like rapid heart rate, anxiety, restlessness and even more severe health complications. Anhydrous caffeine is harmful, which means that even small amounts of caffeine significant impact on the body and this high potency makes accurate dosage control critical to prevent overconsumption, which can lead to adverse health effects.
The high potency and potential health risks associated with anhydrous caffeine have raised regulatory concerns in various jurisdictions. Regulatory agencies are focused on establishing safe usage limits and labeling requirements to prevent misuse and protect consumers. Anhydrous caffeine consumption can lead to various adverse effects, especially when taken in excessive amounts and these effects may include palpitations, increased heart rate, nervousness, insomnia, gastrointestinal disturbances and in severe cases, seizures and cardiovascular events.
Segment AnalysisThe global anhydrous caffeine market is segmented based on type, form, source, application and region.
Adoption of Tea Leaves Boosts the Market
Anhydrous caffeine when added to tea leaves enhances the caffeine content of the resulting tea, which can be particularly relevant for tea varieties with naturally lower caffeine levels such as white tea or herbal tea. By adding anhydrous caffeine, tea manufacturers can create tea blends with higher caffeine content to cater to consumers seeking a stronger energy boost. It also provides flexibility for creating tea blends with specific concentrations of caffeine. Thus, tea leaves as a source hold a significant share in the global Anhydrous caffeine market and expected to cover more than 34.5% in the forecast period.
For instance, on 24 August 2023, according to a paper published in the National Library of Medicine Caffeine is present in energy drinks, soft drinks, gums and medications. Consumption patterns vary globally, with average daily caffeine intake ranging from around 76 mg to over 400 mg per person. tea leaves, anhydrous caffeine can contribute to the overall caffeine content of tea beverages. Different types of tea leaves contain varying amounts of caffeine, with factors like steeping time and water temperature affecting the caffeine extraction during brewing.
Geographical Penetration
Adoption of Caffeine in Medication in North America Boosts the Market
North America is among the largest regions in the global Anhydrous Caffeine market covering more than 1/3rd of the market and the users in the region seeking functional beverages that offer energy-boosting and performance-enhancing benefits. Anhydrous caffeine is a natural stimulant that improves alertness and cognitive function, making it a sought-after ingredient in products targeting health-conscious consumers.
For instance, a study from North Carolina, U.S., was presented on July 25, 2023, according to the journal published by Elsevier. The study analyses the use of 3D printing technology to develop customized oral dosage forms for medication, with a focus on dose titration. Due to its well-known effects and potential side effects, anhydrous caffeine was employed as the medication. Polyvinyl alcohol, glycerol and starch were combined to make a filament that was then used to 3D print caffeine tablets with concentrations of 25, 50 and 100 mg.
Competitive LandscapeThe major global players in the market include Spectrum Chemical Manufacturing Corp., Cambridge Commodities Limited, BASF SE, CSPC Pharmaceutical Group Limited, LobaChemie Pvt. Ltd., Foodchem International Corporation, PureBulk, Fooding Group Limited, Jayanti and Bakul Group of Companies.
COVID-19 Impact AnalysisThe global lockdowns, travel restrictions and disruptions to international trade during the pandemic have affected supply chains and this could lead to delays in the import and export of anhydrous caffeine, potentially impacting the availability of the product. The closure of restaurants, cafes and other food service establishments during lockdowns resulted in reduced demand for products containing anhydrous caffeine, such as energy drinks and supplements. On the other hand, increased consumption of at-home beverages and products could have partially offset this decline.
Social distancing measures and lockdowns affected manufacturing facilities, potentially leading to production slowdowns or shutdowns. Reduced workforce availability and adherence to safety protocols could impact the production of anhydrous caffeine and products containing it. Transportation disruptions, including limited air freight and border closures, could have affected the movement of anhydrous caffeine and related products across regions, potentially causing delays in distribution.
Russia-Ukraine War Impact
If the conflict disrupts transportation routes, especially those used for importing raw materials or exporting finished products, it could lead to supply chain disruptions and this might result in delays or shortages of anhydrous caffeine, affecting the availability of products that contain it. Trade tensions and export restrictions could impact the flow of anhydrous caffeine and related products between countries. Export bans, tariffs or other trade barriers could lead to increased costs and reduced access to key markets.
Geopolitical tensions often lead to market uncertainties and fluctuations in currency exchange rates and this could impact the cost of anhydrous caffeine imports, potentially leading to price volatility for products that contain it. In times of geopolitical uncertainty, consumers might adjust their spending habits and preferences. If the situation leads to economic uncertainties or changes in consumer sentiment, it could affect the demand for products containing anhydrous caffeine.
By Type
● Natural
● Synthetic
By Form
● Powder
● Granular
By Source
● Tea Leaves
● Coffee Beans
● Cacao Beans
● Synthetic Sources
● Guarana Beans
● Others
By Application
● Beverages
● Pharmaceuticals
● Dietary Supplements
● Others
By Region
● North America
U.S.
Canada
Mexico
● Europe
Germany
UK
France
Italy
Russia
Rest of Europe
● South America
Brazil
Argentina
Rest of South America
● Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
● Middle East and Africa
Key Developments● In July 2022, Kudos specializes in manufacturing specialty chemicals used as ingredients in beverages and pharmaceuticals. The company possesses a manufacturing facility located near Chandigarh. The approved resolution plan mandates that UPL invest Rs. 237 crores in Kudos over two years and this acquisition is expected to enable UPL to enhance its offering of value-added products to customers, leveraging synergies with its existing business operations.
● In May 2021, Caffeine Anhydrous, Inc., a manufacturing company specializing in caffeine anhydrous, has successfully increased its production capacity by 50% to cater to the growing demand for its product. The expansion aims to ensure that the company can meet the rising needs of its customers effectively.
Why Purchase the Report?● To visualize the global anhydrous caffeine market segmentation based on type, form, source, application and region, as well as understand key commercial assets and players.
● Identify commercial opportunities by analyzing trends and co-development.
● Excel data sheet with numerous data points of anhydrous caffeine market-level with all segments.
● PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
● Product mapping available as excel consisting of key products of all the major players.
The global anhydrous caffeine market report would provide approximately 69 tables, 69 figures and 199 Pages.
Target Audience 2023• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies