Sports Drink Market Size Worth $29.9 Billion By 2025 | CAGR: 4.3%

The global sports drink market size is expected to reach USD 29.9 billion by 2025, according to a new report by Grand View Research, Inc., expanding at a CAGR of 4.3% over the forecast period. Sports drinks contain various constituents including electrolytes, energy, and water that can be consumed by athletes before, during, or after a competition or training. Growing demand for such drinks among individuals engaged in various physical activities is one of the major factors driving the market. In addition, rising health awareness among the younger population is expected to fuel the market growth.

Rising consumer preference for sports beverages over sodas and other carbonated drinks owing to their respective association with sports and fitness activities. Despite the fact that these beverages were originally made for athletes and sportspersons, they have gained popularity among the common population as anytime drinks or energy drinks, especially among the teenagers and younger adults.

Taking up the opportunity of the popularity of sports beverages among teenagers and adults, manufacturers across the world are targeting these age groups. They are focusing on innovation of new flavors and addition of value to their products by including more health benefits, in order to widen their product portfolio. Furthermore, increase in the number of health clubs and fitness centers are expected to propel the growth of the target market.

In terms of revenue, North America held the largest market share of 40.3% in 2018, owing to growing trend of athleticism and rising concerns over health. Countries in Asia Pacific such as China, India, and Japan are anticipated to hold huge potential for the market growth, considering the presence of a large young population. European countries such as Germany are considered to be the major markets for sports drinks.

Consumer preference for organic and natural products owing to lesser side effects associated with them, is anticipated to have a negative impact on the market growth. Nonetheless, rising demand for these energy beverages with natural ingredients, such as natural sweeteners, is expected to bring up the sales of the market.

Evolution of the retails including supermarkets and hypermarkets, in addition to growing trend of online shopping and booming food and beverage industry, is expected to positively impact the market growth. Among all the distribution channels, retail and supermarkets account for a prominent share in the market due to rising convenience and growing demand for bulk purchases among consumers.

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Further key findings from the study suggest:

  • The hypertonic product segment is projected to expand at a CAGR of 4.6% over the forecast period. The isotonic segment dominated the market with a share of 39.5% in 2018
  • North America dominated the global sports drink market in 2018, accounting for 40.3% share of the overall revenue. This trend is projected to continue over the next few years
  • Countries such as Germany are considered to be the major markets for sports drinks, due to high disposable income of the consumers, followed by India, China, and Japan
  • The industry is highly competitive due to presence of the main players including PepsiCo, Coca-Cola, Sportade, Pocari, 100Plus, and Lucozade
  • Various manufacturers are focusing on new product launches, capacity expansion, and product portfolio extension to estimate existing and future demand patterns from upcoming application segments.

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