Market Research Report

GCC Energy Drinks Market Research Report: Forecast (2023-2028)

By Flavour (Flavoured, Unflavoured), By Sugar Content (Sugar-Free, Non Sugar-Free), By Target Consumer (Teenagers, Adults, Geriatric Population), By Product Type (Hypertonic, Isoto...nic, Hypotonic), By Packaging (Metal cans, Bottles [PET /Glass) & Others]), By Distribution Channel (Supermarket & Hypermarkets, Convenience store, Online Retail, Others), By Country (The UAE, Saudi Arabia, Oman, Kuwait, Bahrain, Qatar), By Company (Monster Beverage Corporation, Red Bull GmbH, Power Horse Energy Drinkss GmbH, Pokka Corporation, Energy Beverages LLC, Dubai Star Food LLC, Mayar Bison, Pepsi Energy Co. (Rockstar Brand), Alesayi beverages corporation (Code Red), MBG Group (Effect), Boom Boom Energy Drinks, Others) Read more

  • Food & Beverages
  • Mar 2023
  • 167
  • FB22058

Market Insights & Analysis: GCC Energy Drinks Market (2023-28)

The GCC Energy Drinks Market is projected to grow at a CAGR of around 2.17% during the forecast period, i.e., 2023-28. The beverages containing stimulant compounds, mostly caffeine, which provide mental & physical stimulation are termed as energy drinks. The increasing adoption of these drinks among teenagers & adults to boost their mental awareness & reduce fatigue is a key factor leading to a surge in the sales of energy drinks. The rising initiatives of the government of the UAE & Saudi Arabia, among others, to ban the consumption of alcohol in public spaces such as malls, stadiums, etc., led to the rising adoption of these drinks among the residents due to the presence of high caffeine content in the drink.

Additionally, GCC countries such as Saudi Arabia, the UAE, and Qatar witnessed a large number of tourist footfalls each year due to the presence of religious places & the launch of international sports activities in the countries. However, in response to the country's ban on consuming alcohol, these drinks have seen a spike in popularity among tourists. Moreover, the promotional marketing tactics adopted by the manufacturers, where these drinks are widely promoted as products that increase energy & enhance mental alertness & physical performance, are anticipated to lead to significant adoption of these drinks among the working populace as well, thus aiding in enhancing the GCC Energy Drinks Market size.

Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 2.17%
Country Covered The UAE, Saudi Arabia, Oman, Kuwait, Bahrain, Qatar
Key Companies Profiled Monster Beverage Corporation, Red Bull GmbH, Power Horse Energy Drinkss GmbH, Pokka Corporation, Energy Beverages LLC, Dubai Star Food LLC, Mayar Bison, Pepsi Energy Co. (Rockstar Brand), Alesayi beverages corporation (Code Red), MBG Group (Effect), Boom Boom Energy Drinks, Others
Unit Denominations USD Million/Billion

 

Simultaneously, the growing number of gyms & fitness centers across the region are actively endorsing & encouraging the consumption of these drinks as a key dietary supplement to boost the stamina of gym fanatics. Hence, owing to the rising demand various manufacturers, such as BCS Global, MOTO, Monster Beverage Corporation, LULU, etc., are increasingly establishing partnerships & collaborations with beverage manufacturing firms to launch these drinks with enhanced taste in the GCC market. For instance,

  • In 2023, BCS Globals, a food & beverage company based in the UAE, launched WOX in 4 unique varieties, namely Classic, Absolute Black, BCAA, and Zero Edition.

Furthermore, the levy of a 100% sales tax on energy drinks by the governments of Saudi Arabia and the UAE has led to an upsurge in the selling price of the drinks. This is one of the major factors driving the market's high revenue growth in per-can consumption across the GCC. Thus, these factors are anticipated to continue to support market growth in the forthcoming years.


GCC Energy Drinks Market Research Report: Forecast (2023-2028)

Market Dynamics:

Significant Driver: Rising Population of Expatriates & Tourists

The rising population of expatriates & tourists has been contributing to the growing demand for energy drinks during the historical period. Several countries, including Saudi Arabia and the UAE, have hosted international conferences and events, which have contributed to the influx of tourists. Hence, restaurants & general stores have been stocking up on these drinks for tourists’ consumption.

Additionally, the ban on alcoholic drinks in the GCC region has further augmented the need for these drinks as a beverage consumption in commercial places like restaurants, cafes, etc. Therefore, an increasing number of tourists & expatriates is expected to drive demand for these drinks during the forecast period.

Key Trend: Increasing Adoption of Sugar-free Energy Drinks

Countries like the UAE, Saudi Arabia, and Kuwait observed growing health consciousness among their citizens owing to rising cases of diabetes & other sugar-related diseases in recent years. Increasing health consciousness has also propelled energy drink companies to launch sugar-free alternatives in the market. Hence, sugar-free energy drinks have gained momentum in the past few years as a substitute for conventional energy drinks. In 2020, the UAE launched its brand energy drink, named Dubai Energy drink, a sugar-free drink containing nutritional vitamins to supplement mental & physical wellness. Additionally, there is a growing trend to switch to such drinks in the future, which would drive market growth.

Possible Restraint: Growing Concerns Regarding High Sugar Content to Impede Market

There is a high demand for energy drinks because they contain natural sugar, which gives the body a boost of energy. However, because of high sugar content, people have developed a negative perception of energy drinks, owing to growing diabetes cases in the region. For instance, in 2021, the UAE had one of the highest rates of diabetes in the world, at 16.3%. Hence, the requirement for these drinks may weaken due to negative perceptions.

In addition, the majority of the population in the GCC region is young & increasingly becoming conscious of their nutritional intake. Thus, having high sugar content in the energy drink would be a constraint for the Energy Drink market growth in the coming years.

Growth Opportunity: Growing Partnerships & Collaborations Between Energy Drink Manufacturers & Event Organizers in Qatar

Qatar is one of the most prominent hosts of major sporting events such as the FIFA World Cup, Turkish Super Cup, etc., which drives a significant number of inbound tourists to the country. It has created a major opportunity for energy drink manufacturers as tourists often consume caffeinated drinks during entertainment activities to boost their moods & reduce fatigue.

In view of this, various energy drink manufacturers are increasingly establishing collaboration activities with event organizers to promote their products among visitors & boost revenue growth. For instance, in 2022, the Qatar Football Association (QFA) signed a new sponsorship deal with the multinational beverage corporation PepsiCo. As part of the agreement, PepsiCo became the 'Official Beverage Partner' of the national football team & the under-23 side.

Additionally, the announcement of the Qatar government to host a service of international & national events in the country, such as the Qatar Open Amateur Golf Championship, Qatar Fencing Grand Prix, etc., is a key opportunity for the manufacturers to boost collaborations with the hosts of the event & expand their revenue progression.

Market Segmentation

Based on the Product Type:

  • Hypertonic
  • Isotonic
  • Hypotonic

Among all, Hypertonic Drinks are anticipated to dominate the market in the historical years due to the low concentration of artificial sugar present in the drink as a result of the increasing consciousness among the residents. Although hypotonic drinks provide less energy than isotonic drinks, their low concentration relative to blood allows for faster fluid absorption via the natural osmotic process. As a manifestation of growing health consciousness, GCC residents are opting for hypertonic-based energy drinks to reduce the prevalence of diabetes.

Based on Packaging:

  • Metal Cans
  • Bottles (PET/ Glass)

Here, Metal cans held the dominant share in the historical years owing to their recyclability. Aluminum is an infinitely recyclable material that requires up to 95% less energy to recycle than it does to produce primary aluminum, limiting emissions such as greenhouse gases. Approximately 75% (nearly 1 billion tons) of all aluminum produced is still in use today.

Furthermore, the recyclability of metal cans packaging reduces production costs. As a result, energy drink manufacturers preferred these cans over PET bottles in recent years. Furthermore, due to a growing emphasis on issues such as recycling, sustainability, and national responsibilities, the use of metal cans as the preferred mode of packaging is expected to continue.

Based on the Flavor:

  • Flavored
  • Unflavored

Unflavored Energy drinks grabbed the majority of market share in the historical period. The increasing awareness among the residents related to the health issues associated with the consumption of flavored drinks, such as diabetes & strokes among others, is leading to a surge in the sales of these flavor drinks among the residents.

Besides, the demand for Flavored Energy drinks is marginal in the region and is anticipated to hold a negligible share in the forthcoming years. The segment is primarily derived from teenagers, who are largely opting for non-alcoholic flavored beer due to changing taste preferences. However, as the governments of several countries, including the UAE & Saudi Arabia, have banned the sale of these drinks to teenagers under the age of 16, the demand for these flavor drinks is expected to remain marginal in the coming years.

Based on Sugar Content:

  • Sugar-free
  • Non-sugar Free

Sugar-free segment is gaining significant momentum owing to the rising inclination of the residents to consume a beverage that causes less harmful effects. The surging diabetic population in the region, coupled with the growing instances of teenagers getting affected by the consumption of sugar-based drinks, is leading to improved sales of sugar-free energy drinks in the region. As a result, energy drink manufacturers, such as Dubai Energy Drink, are widely launching these drinks in the region to capitalize on emerging revenue opportunities.

Country Landscape

Geographically, the market expands across:

  • The UAE
  • Saudi Arabia
  • Oman
  • Kuwait
  • Bahrain
  • Qatar

Of all the countries across the GCC region, Saudi Arabia & the UAE accounted for the majority share of the Energy Drink market in the historical period, owing to the region's strong ties to western regions & brands. In addition, these countries had the largest population of citizens and expatriates living in the GCC region, allowing marketers to take advantage of bulk sales.

Qatar, on the other hand, is expected to provide potential growth opportunities, as high per capita income combined with government support reinforces the overall economy. Furthermore, the FIFA World Cup in 2022 is also expected to drive demand for energy drinks in the coming years.  

Recent Development by the Leading Companies

  • 2021: PepsiCo introduced its energy drink product, Rockstar Energy Drink, in the UAE. The product is positioned in such a way that non-sporting communities like innovators, entrepreneurs, and workaholics may utilize it.

Gain a Competitive Edge with Our GCC Energy Drinks Market Report

  1. GCC Energy Drinks Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
  2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
  3. GCC Energy Drinks Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

Frequently Asked Questions

   A. The GCC Energy Drinks Market is projected to grow at a CAGR of around 2.17% during 2023-2028.

   A. The surging influx of tourists & expatriates is expected to drive the GCC Energy Drinks Market during 2023-28.

   A. Monster Beverage Corporation, Red Bull GmbH, Power Horse Energy Drinks GmbH, Pokka Corporation, Energy Beverages LLC, Dubai Star Food LLC, Mayar Bison, Pepsi Energy Co. (Rockstar Brand), Alesayi beverages corporation (Code Red), MBG Group (Effect), Boom Boom Energy Drink, etc., are some of the top players.

   A. Metal Cans is the leading packaging & most preferred type for these drinks.

   A. Saudi Arabia & the UAE are anticipated to dominate the market.

   A. The presence of high sugar content in energy drinks is anticipated to slow the market growth.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. GCC Energy Drink Market Porters Five Forces Analysis
  5. GCC Energy Drink Market Supply Chain Analysis
  6. GCC Energy Drink Market Trends & Insights
  7. GCC Energy Drink Market Dynamics
    1. Drivers
    2. Challenges
  8. GCC Energy Drink Market Growth Opportunities & Hotspots
  9. GCC Energy Drink Market Policy & Regulations
  10. GCC Energy Drink Market Outlook, 2018-2028F
    1. Market Size & Outlook
      1. Revenues (USD Million)
      2. Quantity Sold (Million Liters)
    2. Market Share & Outlook
      1. By Flavour
        1. Flavoured
        2. Unflavoured
      2. By Sugar Content
        1. Sugar-Free
        2. Non Sugar-Free
      3. By Target Consumer
        1. Teenagers
        2. Adults
        3. Geriatric Population
      4. By Product Type
        1. Hypertonic
        2. Isotonic
        3. Hypotonic
      5. By Packaging
        1. Metal cans
        2. Bottles (PET /Glass) & Others
      6. By Distribution Channel
        1. Supermarket & Hypermarkets
        2. Convenience store
        3. Online Retail
        4. Others
      7. By Country
        1. The UAE
        2. Saudi Arabia
        3. Oman
        4. Kuwait
        5. Bahrain
        6. Qatar
      8. By Company
        1. Market Share
        2. Competition Characteristics
  11. The UAE Energy Drink Market Outlook, 2018-2028F
    1. Market Size & Outlook
      1. Revenues (USD Million)
      2. Quantity Sold (Million Liters)
    2. Market Share & Outlook
      1. By Flavour
      2. By Packaging
      3. By Distribution Channel
  12. Saudi Arabia Energy Drink Market Outlook, 2018-2028F
    1. Market Size & Outlook
      1. Revenues (USD Million)
      2. Quantity Sold (Million Liters)
    2. Market Share & Outlook
      1. By Flavour
      2. By Packaging
      3. By Distribution Channel
  13. Oman Energy Drink Market Outlook, 2018-2028F
    1. Market Size & Outlook
      1. Revenues (USD Million)
      2. Quantity Sold (Million Liters)
    2. Market Share & Outlook
      1. By Flavour
      2. By Packaging
      3. By Distribution Channel
  14. Kuwait Energy Drink Market Outlook, 2018-2028F
    1. Market Size & Outlook
      1. Revenues (USD Million)
      2. Quantity Sold (Million Liters)
    2. Market Share & Outlook
      1. By Flavour
      2. By Packaging
      3. By Distribution Channel
  15. Bahrain Energy Drink Market Outlook, 2018-2028F
    1. Market Size & Outlook
      1. Revenues (USD Million)
      2. Quantity Sold (Million Liters)
    2. Market Share & Outlook
      1. By Flavour
      2. By Packaging
      3. By Distribution Channel
  16. Qatar Energy Drink Market Outlook, 2018-2028F
    1. Market Size & Outlook
      1. Revenues (USD Million)
      2. Quantity Sold (Million Liters)
    2. Market Share & Outlook
      1. By Flavour
      2. By Packaging
      3. By Distribution Channel
  17. GCC Energy Drink Market Key Strategic Imperatives for Growth & Success
  18. Competitive Benchmarking
    1. Competition Matrix
      1. Product Portfolio
      2. Target Markets
      3. Target End Users
      4. Research & Development
      5. Strategic Alliances
    2. Company Profiles (Business Description, Product Offering, Strategic Alliances or Partnerships, etc.)
      1. Monster Beverage Corporation
      2. Red Bull GmbH
      3. Power Horse Energy Drinks GmbH
      4. Pokka Corporation
      5. Energy Beverages LLC
      6. Dubai Star Food LLC
      7. Mayar Bison
      8. Pepsi Energy Co. (Rockstar Brand)
      9. Alesayi beverages corporation (Code Red)
      10. MBG Group (Effect)
      11. Boom Boom Energy Drink
      12. Others
  19. Disclaimer


GCC Energy Drinks Market - Segmentation Slide