The GCC Energy Drink market is projected to grow at a CAGR of around 2.17% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The market growth is attributed to the rising consumption of these beverages by adults & youth to reduce fatigue during excessive working hours. Furthermore, due to the growing efforts of governments such as the UAE and Saudi Arabia, among others, to prohibit the consumption of alcohol in public places like malls & stadiums, energy drinks have become more prevalent among locals due to the beverage's high caffeine content. In addition, as energy drinks grow in popularity with boosting energy levels & stamina, more & more gyms and fitness facilities in the area actively endorse and encourage their use as a vital dietary supplement to improve the stamina of gym enthusiasts.
Moreover, the surging hosting of various national & international events by the government of Qatar, Kuwait, Saudi Arabia, and the UAE presented a lucrative opportunity for manufacturers to strengthen their relationships with the event organizers to launch & market their energy drinks in the events & enhance their revenue growth in the upcoming years, further states the research report, “GCC Energy Drink Market Analysis, 2023.”
Metal Cans to Hold a Significant Share in the GCC Market
Based on packaging, the market is bifurcated into Metal Cans & Bottles (PET/Glass). Of them, the Metal Cans packaging is expected to attain a dominant share in the market during the forecast years, owing to their ease of recyclability & the growing government traction towards promoting the usage of sustainable products. Aluminum has the advantage of being recyclable indefinitely and using up to 95% less energy when recycled than in its primary production, allowing greenhouse gas emissions to be reduced.
Additionally, the ease of availability of metal in the region leads to its lower production cost, thereby diminishing the production cost of energy drinks among the manufacturers. Thus, the availability of energy drinks in metal cans at a competitive cost is anticipated to drive market growth from the metal packaging segment in the forecast years.
Unflavored Energy Drinks to Attain a Considerable Growth in the Upcoming Years
Based on the flavor, the market is further bifurcated into Unflavored & Flavored. Of them, the Unflavored energy drink is expected to witness a significant growth rate in the upcoming years. These drinks sales are increasing as a result of citizens' growing knowledge & awareness related to the health risks linked to the intake of flavored beverages, including diabetes & strokes, among others. Additionally, the imposition of a sugar tax by the government of GCC countries to reduce the intake of sugar among the residents to minimize the regional diabetic risks is further uplifting the market growth from the unflavored segment.
Saudi Arabia to Gain Notable Traction in the GCC Energy Drinks Market
Geographically, due to the region's close relations with western nations & brands, Saudi Arabia & the UAE have been holding the lion's share of the Energy Drink market for the past period. As these nations had the highest number of expatriates & residents within the GCC, marketers were able to benefit from bulk purchases, which drove revenue growth in the sector.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Monster Beverage Corporation, Red Bull GmbH, Power Horse Energy Drinks GmbH, Pokka Corporation, Energy Beverages LLC, Dubai Star Food LLC, Mayar Bison G?da ?ç ve D?? Tic. A.?., Pepsi Energy Co. (Rockstar Brand), Alesayi beverages corporation (Code Red), MBG Group (Effect), Boom Boom Energy Drink, etc.) are looking forward to strengthening their market position.
Key Questions Answered in the Research Report