Asia-Pacific Sports Drink Market Size (2023-2030)

The Asia-Pacific Sports Drink Market was valued at USD 5.72 billion and is projected to reach a market size of USD 9.80 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 8%. 

The stated goal of sports drinks, usually referred to as electrolyte drinks, is to assist athletes in replenishing fluids, electrolytes, and energy before, during, and particularly following training or competition. The market for sports drinks has seen substantial growth over the past decade, owing to increasing health consciousness. Presently, the market has been expanding because of product innovations, global operations, and online retail. In the future, with health and wellness trends as well as a growing population, this market will experience a significant enlargement. During the forecast period, a notable growth rate is anticipated.

Key Market Insights:

A poll carried out in 2023 across Southeast Asian nations revealed that more than 41% of Malaysian respondents drank energy drinks either before or following their participation in sports. By contrast, as of January 2023, 53% of respondents in Myanmar said they drank energy drinks when they felt warm or when it was hot outside.

Sales of sports drinks in China were estimated to have reached 11.3 billion yuan in 2020 and 11.7 billion yuan by 2021. That year, the entire market value of energy drinks in China exceeded 122 billion yuan.

In 2021, sales of energy and sports drinks saw an almost 17% rise in revenue worldwide. In 2027, the Statista Consumer Market Outlook projects a growth rate of 3.2%.

In 2023, the beverage industry is expected to generate US$93.99 billion in revenue.

Sports drinks make up over 26% of all the sugar-sweetened beverages consumed by teenagers.  Consuming excessive amounts of these might raise the chance of being overweight or obese, as well as other health issues including type 2 diabetes, cardiovascular disease, and gout, especially if an individual is not exercising vigorously. Dental caries is another potential hazard. To tackle this, companies are coming up with sugar alternatives and sugar-free options.

Asia-Pacific Sports Drink Market Drivers:

Fitness trends have been driving market growth.

Urbanization in Asia-Pacific regions has played a major role in altering the personal choices of a greater percentage of the population. Dual income, rising middle-class income, and increasing disposable income are the other reasons. However, a growing proportion of the population is being diagnosed with chronic conditions such as diabetes, hypertension, heart disease, etc. The statistics of these figures have raised awareness of the significance of maintaining physical and mental well-being. Due to this, gyms have gained immense attention. By 2020, with 27,000 clubs, China had the largest number of health and fitness clubs, as per Statista. The trainers customize diet plans to maintain a healthy weight. This involves the consumption of sports drinks to boost energy. These beverages were mainly consumed by athletes. But with an increase in the number of fitness enthusiasts, this beverage has become popular.

The benefits of the beverage have been paving the way for flourishment.

Sports drinks are promoted as a way to improve endurance and replace fluids as well as electrolytes like sodium, potassium, magnesium, and calcium lost during intense activity. Secondly, sports drinks or other flavored beverages can help those who don't prefer to drink plain water satisfy their increased hydration demands during activity. Apart from this, they help in providing a sugar boost to complete any exercise or activity, or when needed.

Innovation and product diversity are helping the growth rate.

The food and beverage industry is constantly experimenting with new varieties. Significant progress has been achieved in flavor, texture, and quality. Additionally, this industry has been aligning with a lot of fitness goals. They are creating healthier substitutes to market them. This includes sugar-free options and low-calorie alternatives. Furthermore, a few drinks are being customized to satisfy the needs of individuals. A larger consumer base has been formed as a result.

Asia-Pacific Sports Drink Market Restraints and Challenges:

Health concerns, rivalry, and environmental issues are the main barriers that the market is currently experiencing.

Sports drinks are often associated with high levels of sugar, which is not the recommended amount. The prevalence rate in China was 10.6 percent, showing a modest rise over the previous ten years, as per Statista. Besides this, these drinks are inculcated with several artificial additives to impart flavor and color. These additives can cause liver problems, diabetes, hormonal imbalances, and unhealthy weight gain. Few of them have been linked to cancer. Secondly, the companies in this market face intense competition. Consumers in the industry rely on well-known and identifiable brands. Other unidentified or less well-known brands may suffer as a result. Thirdly, many companies use plastic and other non-recyclable materials to package their goods. This leads to an accumulation of waste. This creates concerns about sustainability.

Asia-Pacific Sports Drink Market Opportunities:

The market has benefited from the expansion of e-commerce. Shipping both domestically and internationally is achievable using internet methods. More earnings result from this. Secondly, environment-friendly practices are being prioritized by using eco-friendly techniques. Though this is just the beginning, significant development is expected during the forecast period. Furthermore, healthier and innovative formulations are being emphasized. This covers reduced sugar, substitutes, low-calorie, gluten-free, and drink options that have a good number of vitamins and other minerals.

ASIA-PACIFIC SPORTS DRINK MARKET REPORT COVERAGE:

Asia-Pacific Sports Drink Market Segmentation:

Asia-Pacific Sports Drink Market Segmentation: By Type:

• Hypertonic
• Hypotonic
• Isotonic

Based on type, the isotonic segment is the largest and fastest-growing in the market. This is because they contain the same amounts of sugar and salt as the human body. Additionally, it is easily absorbed and digested. They hold a share exceeding 45%. Besides, a greater number of companies are involved in the manufacture and production of beverages. Furthermore, a larger percentage of athletes consume these drinks, thereby creating an upsurge in demand. During the forecast period, considerable revenue is predicted for this category.

Asia-Pacific Sports Drink Market Segmentation: By End User:

• Athletes
• Casual Customers
• Others

Athletes are the largest and fastest-growing end-user segment, occupying a share of more than 67% in this market. This is mainly because of the instant energy boost this drink offers. Additionally, it increases sugar intake, improves performance and endurance, aids stress management, and relieves anxiety. The casual customer segment is also seeing good growth owing to rising demand, experimentation, availability, trends, and e-commerce expansion.

Asia-Pacific Sports Drink Market Segmentation: By Distribution Channel:

• Supermarkets/Hypermarkets
• Specialty Stores
• Online Retail
• Others

Supermarkets and hypermarkets are the market's largest distribution channels. Their overall market share is higher than 55%. This is due to factors like availability, presence, accessibility, originality, authenticity, face-to-face interaction, and visual inspection. Online retail is growing at the fastest rate due to the continuous digital transformation. They own around 35 percent of the revenue. A growing number of consumers are choosing online meal delivery services as a result of growing consumer knowledge and the availability of a variety of products. They may place orders conveniently from the comfort of their own homes. This facilitates the purchase of items in remote areas. Additionally, this segment ensures customer satisfaction, discounts, deals, and freshness.

Asia-Pacific Sports Drink Market Segmentation: Regional Analysis:

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Rest of Asia-Pacific

China is the largest region in the market, holding a nearly 32% market share. This is due to several factors, including population, the presence of large corporations, bulk manufacturing, demand, uniqueness, innovations, cultural importance, attractiveness, and flavor advances. India is the country that is expanding at the fastest rate owing to factors such as the rise in fast-food franchises and restaurants, population growth, emerging new players, global operations, and an increasing number of innovations, investments, marketing strategies, and company collaborations. About 22% of the total is made up of this region.

COVID-19 Impact Analysis on the Asia-Pacific Sports Drink Market:

The pandemic hurt the market. Lockdowns, restrictions on movement, and social isolation were the new normal. To stop the virus from spreading, hotels, fast-food franchises, and restaurants were required to close as per guidelines and standards. As a result, the food and beverage industry was obliged to suffer large losses. Moreover, a large number of people experienced job losses as a result of uncertainty and financial restraints. There weren't enough personnel in a few other places to manage daily operations. Transportation, logistics, and the supply chain were all negatively impacted. These factors had a major effect on the import-export trade. This caused an economic downfall. People realized the importance of having a healthy mind and body, leading to the incorporation of healthy and balanced diets. Besides this, gyms were closed, causing a decrease in sales. Furthermore, no sports events were happening. As per Food Dive, Coca-Cola sales were down by 28%, which was 2 billion USD during 2020. However, post-pandemic, the market has started to pick up due to the uplift of lockdowns and the relaxation of rules. Online retail has been helping the market.

Latest Trends/ Developments:

The companies in this market are motivated to achieve a higher market share by implementing different strategies, such as acquisitions, partnerships, and investments. Companies are also spending heavily to improve existing creations while maintaining competitive pricing. This has further resulted in increased enlargement.

The growing popularity of subscription boxes is fueling the market's expansion. Delicacies and other intricate culinary products are included in these boxes. They can also be separated into regular and premium categories. Authentic flavors and innovations are included with premium memberships. These cases are being promoted by online retailers using a variety of marketing techniques.

Key Players:

1. Otsuka Pharmaceutical Co., Ltd.
2. The Coca-Cola Company
3. PepsiCo, Inc.
4. DyDo Group Holdings, Inc.
5. Fraser and Neave, Limited
6. Suntory Holdings Limited
7. Yakult Honsha Co., Ltd.
8. Kirin Holdings Company, Limited
9. Danone S.A.
10. Red Bull GmbH

In June 2023, to increase its influence in the world of professional football, PepsiCo, a proud sponsor of the UEFA Champions League (UCL) since 2015, announced that its strategic alliance would be extended for an additional three years, ending in June 2027. As the tournament structure evolves and the number of participating teams rises, PepsiCo is the first sponsor to renew the UCL partnership. This move gives fans more options to enjoy beloved PepsiCo products like Pepsi®, Lays®, and Gatorade®.

In April 2023, Kirin introduced Kirin Plasma Sports, the company's first sports nutrition drink, in Japan. It was the first sports nutrition drink made by the firm that was approved by the Food with Function Claims (FFC) system. This drink is claimed to help with immune care.

In July 2020, Xiaoyangren, a milk-based beverage company in China, expanded its line of sports beverages. The closing mechanism, according to the business, will let customers drink while they're on the go, which is perfect for when they're performing sports and other activities. The sports drink bottle also has Simplisqueeze, an Aptar flow control silicon valve that stops leaks even while the lid is open.