China Energy Drink Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

China Energy Drink Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

China's energy drink market is expected to register a CAGR of 5.22% during the forecast period.

• Energy drinks are rising in popularity in China, especially among young consumers, 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 consuming energy drinks in China.
• Consumers greatly prefer energy drinks with lower sugar content and natural ingredients amid rising health consciousness. Market players are also experimenting with natural ingredients within their portfolios to meet the energy, taste, and size requirements of the ever-evolving consumers in the country. Brands are coming up with new flavors to compete with existing competition. Thus all such factors are anticipated to support the demand and consumption of energy drinks in the Chinese market over the coming years.

• Consumers in the Chinese energy drinks market are placing more demand for the inclusion of additives and stimulants in energy drinks, which are commonly used in most gyms. The demand is higher amongst the younger generation and gym goers. The main factor driving the demand for energy drinks is that they act as an energy booster, enhancing both physical and mental performance.
• The Chinese market is witnessing many local energy drinks brands gaining consumers via effective distribution strategies and an affordable alternative to established and major brands. Furthermore, brands are focusing on targeting young consumers interested in sports, health, fashion, etc. Thus, these factors support the consumption of energy drinks in the Chinese market.

• Consumers are increasingly becoming health conscious due to rising rates of lifestyle diseases and are adopting an active lifestyle, which is placing demand for sugar-free energy drinks. According to the International Diabetes Federation (IDF), in 2021, around 140.87 million people had diabetes in China, which is likely to rise to 174.43 million by 2045.
• Due to the high prevalence of diabetes in the country, consumers are becoming more aware of the importance of a healthy diet and an active lifestyle. Thus, consumers are opting for low-calorie, low-sugar, or sugar-free energy drinks. Consumers are actively trying to avoid consuming sugary drinks to prevent the harmful effects of excessive sugar intake.
• Additionally, changes in consumer preferences for reduced or no-sugar products induce energy drink manufacturers toward product innovation. These manufacturers are, in turn, developing a range of novel products to meet the accelerating demand for such products. Moreover, private-label companies are also entering the market to meet the demand for healthier alternatives in the beverage category, competing with the top brands. These factors are fueling market growth for energy drinks in the Chinese market.

The Chinese energy drink market is fragmented and competitive, with a number of players focusing on following different marketing strategies such as new product launches, mergers & acquisitions, and investment in research and development, etc. Prominent market players include Red Bull, Monster, Burn, RockStar Inc., PepsiCo., etc. Market players are launching drinks in different flavors to attract consumers and enhance their market share.

• The market estimate (ME) sheet in Excel format
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