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

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

United Kingdom energy drink market is projected to register a CAGR of 4.5% during the forecast period (2022-2027).

The global pandemic COVID-19 has made a significant impact on United Kingdom's energy market, for example, Red Bull one of the major players in the energy drink market has had a growth of 16%, as the company has sold 7.9 billion energy drink cans in 2020, this was due to the rising awareness among the consumer for the need for a healthy lifestyle, therefore, many consumers replaced the normal carbonated drinks with energy drinks which resulted in maintaining a positive revenue for the companies in this specific industry.

Growing health consciousness among the British youth have increased the demand for non-carbonated drinks. Adolescents widely consume energy drinks as these claim to improve performance, endurance, and alertness. At the same time, long and erratic working hours and the increasing occurrence of social gatherings are driving consumers toward the consumption of energy drinks.​

Moreover, rising health-conscious consumers and growing consumer awareness regarding active lifestyles, and rising rates of lifestyle diseases have inspired health-oriented consumers to prefer healthy and sugar-free drinks. The energy drinks market is also projected to grow due to the increased promotional and advertisement strategies.

Consumers are changing their preferences with changing lifestyles. Many of the consumers have participated in several sports activities, such as running, fitness clubs, mountain tracks, and other physical activities which results in lowering of energy in an individual's body, thereby, the consumers are opting more energy drinks as the presence of caffeine in the drink helps to block adenosine which results in reducing of sleep and the other ingredients provide energy that results as the consumer feels energetic. The major components of energy are caffeine, taurine, guarana, and the drink also includes various other ingredients. In, United Kingdom, the consumers of energy drinks are mostly aged between 18-29 years. The involvement of consumers in various sports activities is one of the major factors which is driving the energy drink market.

Due to the rising awareness regarding health and with the changing lifestyle of the consumers, the demand for energy drinks is also rising, this is due to the factor that energy drinks can provide the consumer instant energy and the additional benefits that these drinks carry as it is better than sugary carbonated non-energy drinks. The consciousness of consumers with respect to the consumption of sugary drinks, as the usage of such products is linked to cardiovascular diseases, obesity, and other chronic diseases, thereby, many consumers are eventually engaged with various physical activities to maintain proper health. According to the report of the International Health, Racquet & Sportsclub Association, the total number of members who have joined fitness clubs in United Kingdom is around 578,000 of the whole population. Thus, the involvement of many consumers in these activities is increasing the demand for energy drinks in the market, as these drinks provide them energy with health benefits. Moreover, the change in consumer preferences for reduced or no-sugar products has directed beverage manufacturers to go for product innovation to develop a range of novel products to meet the accelerating demand of consumers. Therefore, many consumers have switched to energy drinks which is one of the reasons that is driving the market.

United Kingdom energy drinks market is highly competitive, with the major share held by a few players, like Red Bull GmbH, PepsiCo Holding, and Monster Energy.​ Energy drinks claim a major market segment, especially among the young population in the country. The use of natural ingredients in energy drinks and the increase in new varieties and types of energy drinks are primary drivers for the growth of this market. In addition, energy drinks are increasingly being used as mixers for alcoholic beverages.​ The key players in the industry are focusing on product development and product innovation to meet the changing preferences of the consumers. Some of the top players are using mergers and acquisitions of small and local players as their key strategy to hold the dominant position in this specific market.

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