India Energy Drink Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

India Energy Drink Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The India Energy Drink market is projected to grow at a CAGR of 9.98% during the forecast period, 2022-2027.

COVID-19 has left many opportunities for many private players to emerge in the markets to cater to the inflated demand for energy drinks, which benefited the manufacturers of energy drinks. Due to the coronavirus pandemic, people had to spend more time at home, especially young people. Quarantine disrupted daily routine and caused changes in dietary habits. It has been reported that consumption of caffeine and energy drinks was found to be increased among young people who had more stress during e-exams and due to social isolation. The increased sales of energy drinks were observed through online stores during the lockdown, which sustained the demand for energy drinks in the market studied.

Over the medium term, the increased demand for energy boosters from the young population in parties and clubs is accelerating the demand for energy drinks in India. Increased urbanization, rising disposable income, and growing health consciousness among the Indian youth have increased the demand for non-carbonated drinks called energy drinks. At the same time, long and erratic working hours and the increasing occurrence of social gatherings are driving Indian consumers toward consuming energy drinks, which are primarily classified as non-alcoholic, caffeinated, and sports drinks. Over the past few years, the sale of energy drinks has been driven by changing consumer lifestyles and increasing demand for alcohol mixers.

Moreover, consumers have become more health conscious, which has increased the demand for functional beverages instead of non-carbonated ones, which provide high calories. Also, manufacturers have not shifted their focus from athletes, the primary target for energy drinks is two teenagers and young adults, which is widening the market and creating ample opportunities.

India Energy Drink Market TrendsIncreased Consumption of Packaged Soft Drinks

Although traditional and homemade drinks remain popular, the market for non-carbonated packaged drinks has gained huge popularity over the past two years. Various factors, like increasing disposable incomes and rising health consciousness, are leading to the growth in the demand for non-carbonated drinks. This growth enables industry players to concentrate more on health and energy drinks, thereby driving the energy drink market. In recent years, consumers have increasingly opted for naturally healthy, packaged foods and beverages associated with fortified/functional, organic, or better-for-you products, as these are perceived to offer essential natural nourishment, driving the packaged soft drinks segment of the Indian energy drink market.

Convenience Stores Remains the Largest Market

Convenience stores have low capital requirements when compared to supermarkets/hypermarkets. Owing to the low capital required, the number of convenience stores in India is higher. Since Energy drinks are priced on a higher end than other soft and carbonated drinks, and though consumers are aware of the benefits associated with the consumption, the sales by volume are not huge. Furthermore, these stores are located in convenient spots, such as close to the colonies, so that the products are easily available to the nearby residents. This, in turn, increases the demand for products and the sales from convenience stores.

Competitor Analysis

The Indian energy drink market is witnessing fast growth, which has led to fiery competition. Yet, the market is dominated by a few international brands. Quality is not to be compromised, which is the reason why companies are pricing the products low but promising quality to gain a significant market share. Red Bull is the giant dominating this market and continues its run as the leader. With energy drinks on the corner, athletes and fitness-freak consumers look forward to different flavors in the category. Companies with products in this segment are benefitting and developing strategies to continue holding their position by introducing new variants in the category. Some of the major players in the market are RED BULL GMBH, Goldwin Healthcare, Power Horse Energy Drinks GMBH, Monster Beverage Corporation, and Nutralite Health Care.

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• The market estimate (ME) sheet in Excel format
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