Market Definition
Energy drinks are carbonated or non-carbonated drinks that contain a high percentage of sugar, caffeine, or other stimulants to provide a soothing effect upon consumption. With the growing health consciousness & improving purchasing power of people, the demand for energy drinks is escalating across China, and gaining swift popularity, especially among the younger population.
Market Insights
The China Energy Drink Market is projected to grow at around CAGR 5.1% during the forecast period, i.e., 2022-27. The growth of the market is driven primarily by the active participation of several energy drink manufacturers & their growing focus on developing new marketing strategies like alignment with popular sports events, etc., to increase awareness about energy drinks and boost their sales across China.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 5.1% |
| Key Companies Profiled | Red Bull, Monster Energy Company, Taisho Pharmaceutical California, Inc., Daly Foods Group, Hangzhou Wahaha Group Co. Ltd., Coca-Cola, PepsiCo., Southland Trade Company Ltd., Otsuka Pharmaceutical etc |
| Unit Denominations | USD Million/Billion |
Besides, with the growing collaboration among beverage manufacturers & escalating number of strategies to increase awareness & adoption of energy drinks in China, the demand for these drinks is likely to witness a hike and positively influence the market growth over the forecast years.
Furthermore, the active participation of prominent players in introducing an extensive range of energy drinks to suit different requirements & tastes is widening the customer base, which is another crucial factor projected to stimulate the market growth in the coming years.
Impact of Covid-19 on the China Energy Drink Market
The advent of Covid-19 in 2020 had the worst effect in China, yet the China Energy Drink Market underwent a positive impact amidst the crisis. With the imposition of stringent movement restrictions & lockdown by the Chinese government to curb the spread of this dreadful disease, people had to remain at home, which, in turn, resulted in the shutdown of public places like sports arenas, gyms, etc.
However, since people continued their workout regimes at home, the demand for energy drinks remained consistent in the country amidst the pandemic. Slight difficulties in increasing the production capacities to meet the burgeoning requirement of energy drinks in China introduced a slowdown in the market growth. However, the overall demand rate displayed an upswing for the market.
