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.
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.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|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.
Based on the Product Type:
Of them all, Organic Drinks displayed considerable growth in the China Energy Drink Market in recent years. It owes principally to the rapidly growing health consciousness among consumers & sports communities with the use of natural ingredients like guarana black tea, green tea, & green coffee beans.
Besides, the addition of natural extracts for reducing the usage of sugar content in Energy Drinks is another prominent factor soaring the demand for Organic Energy Drinks across China and fueling the overall market growth.
On the other hand, Non-Organic drinks dominated the China Energy Drink Market in recent years, and the same trend is likely during the forecast period. It attributes principally to the easy availability & longer shelf life of non-organic drinks that offer easy storage & transportation across the country.
Amongst all companies in the China Energy Drink Market, the leading player, Red Bull GmbH, an Austria-based multinational company, is actively operating in the beverages segment and launched its first product in 1987. In the energy drinks segment, the company offers five types of Red Bull Drinks, viz., Red Bull Summer Edition, Red Bull Purple, Red Bull Yellow Edition, Red Bull Sugar-free, & the Red Bull Original. In 2020, Thailand’s T.C. Pharmaceutical Industries Co. Ltd (TCP), the original inventor of 'Red Bull,' announced to invest USD150 million in China to expand its presence.
Recent Developments by Leading Companies
Key Driver: Rising health Consciousness & Improving Purchasing Power of People
Growing awareness, availability, & affordability of Energy Drinks entwined with increasing disposable income is encouraging leading players to introduce a new & extensive range of Energy Drinks for consumers. It, in turn, would drive the China Energy Drink Market during 2022-27.
Growth Restraint: Concerns over Ingredients & Growing Competition
Escalating concerns associated with the high content of sugar & carbonated ingredients in energy drinks might restrain the growth of the China Energy Drink Market among the health-conscious population of the country. Moreover, increasing competition and availability of low-priced energy drinks are other crucial aspects that would challenge the expansion of the leading market players during the forecast period.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The China Energy Drink Market is projected to grow at a CAGR of around 5.1% during 2022-27.
A. Organic energy drinks are anticipated to emerge as an area of remunerative opportunities for the leading players in the China Energy Drink Market through 2027.
A. The mounting awareness, availability, & affordability of Energy Drinks entwined with increasing disposable income is the key growth opportunity projected to drive the China Energy Drink Market in the coming years.
A. In the coming years, the leading players in the China Energy Drink Market are anticipated to increase their production capacity & introduce an extensive range of energy drinks to China, which, in turn, would boost the overall market growth.