Europe Energy Drinks Market Size (2024-2030)

The Europe Energy Drinks Market was valued at USD 1.98 billion in 2023. Over the forecast period of 2024-2030, it is projected to reach USD 3.38 billion by 2030, growing at a CAGR of 7.95%.

Functional beverages, commonly known as electrolyte drinks, function as a replenishment aid for athletes aiming to restore hydration, electrolyte balance, and endurance before, during, and after physical exertion or competitive activities. These beverages confer advantages such as rejuvenation, an immediate surge in energy, heightened concentration, and improved reaction time. Comprising a diverse range of constituents including taurine, caffeine, botanical extracts, and vitamins, among others, energy drinks cater to a broad demographic.

Energy drinks offer a range of benefits, including enhanced reaction time, revitalization, instant energy, and heightened focus. These beverages contain various ingredients such as vitamins, taurine, herbal extracts, caffeine, and other compounds. Taurine, for instance, is classified as an amino acid, serving as a fundamental element of protein. These products are readily available in venues such as bars, convenience stores, and gas stations, often found alongside juices, sports drinks, and soft drinks.

Key Market Insights:

Energy drink consumption is more prevalent among males compared to females and tends to increase with age. In the UK, 19% of adolescents indulge in energy drinks at a frequency of 4-5 days per week or more.

Over the past seven years, the European soft drinks sector has successfully decreased the average added sugars by 17.7%. This achievement aligns with the strengthened health and nutrition commitments outlined by the Union of European Soft Drinks Associations (UNESDA).

In the European market, both traditional and sugar-free/low-calorie energy drinks hold significant dominance, collectively representing a substantial 62% value share in 2023. This market supremacy is driven by the growing availability of energy drinks with innovative flavor profiles and ingredient combinations. These beverages are now presented as standalone products or blended with juices or spirits, accommodating a wide range of preferences, from mocktails to cocktails.

Europe Energy Drinks Market Drivers:

Increasing benefits of consuming energy drinks drive market growth.

The burgeoning demand for enhanced functionality in beverages and the introduction of new energy drink products play pivotal roles in driving the growth of the energy drinks market. Additionally, increasing awareness about health and wellness products, coupled with evolving lifestyle patterns, will significantly impact market expansion. The rise in consumer health consciousness, coupled with increasing urbanization and higher disposable incomes, will further propel the growth rate of the market.

Europe Energy Drinks Market Restraints and Challenges:

Risks related to The Inclusion of Hazardous Elements hinder market growth.

Consumer concerns regarding the potential presence of substances such as prohibited colors, additives, industrial chemicals, drug residues, unreported allergens, and heavy metals in products are impacting the Asia-Pacific non-alcoholic beverage market. The consumption of these residues can lead to adverse health effects, potentially hindering market growth. Moreover, ingredients like caffeine, taurine, and sugar in energy drinks can elevate insulin levels, posing risks for individuals with diabetes. The extreme composition of energy drink ingredients renders them unsuitable for a significant portion of the target demographic. Ambiguities persist regarding the suitability of energy drinks for children.

Although companies like Monster Energy Drinks assert that there is no specified age limit for consuming these beverages, they acknowledge that promotion to children under 12 years old should be avoided. Brands such as Red Bull, Monster, and Lucozade enjoy popularity in the energy drink market, alongside Rockstar and Hi-Tiger.

Europe Energy Drinks Market Opportunities:

The increasing need for instant boost among youngsters drives the demand for energy drink

Consumer apprehensions regarding sugar consumption are driving the preference for energy drinks with reduced sugar content or those labeled as sugar-free or low-sugar. Discounts and promotions, such as buy-one-get-one-free offers or multi-pack deals, are influencing consumer behavior, particularly when perceived as offering good value for money.

EUROPE ENERGY DRINKS MARKET REPORT COVERAGE:

Europe Energy Drinks Market Segmentation:

Europe Energy Drinks Market Segmentation By Soft Drink Type:

• Energy Shots
• Natural/Organic Energy Drinks
• Sugar-free or low-calorie energy Drinks
• Traditional Energy Drinks

Within the European market, both traditional and sugar-free/low-calorie energy drinks collectively held a substantial 62% value share in 2023. The surge in the popularity of energy drinks is attributed to the increasing availability of innovative flavor profiles and ingredient combinations. These beverages are now offered as standalone products or incorporated into mixed drinks with juices or spirits, catering to a diverse range of tastes and preferences, from mocktails to cocktails.

Furthermore, the natural/organic energy drinks segment is experiencing remarkable growth in Europe, fueled by its rising popularity across various consumer segments. In 2023, a noteworthy 41% of German consumers indicated a willingness to invest in energy drinks made exclusively from natural enhancers, even at a premium price. In response to this demand, industry leaders and emerging brands like Tenzing, Celsius, and Nuun are integrating ingredients such as guarana, green tea, and natural caffeine into their products. This alignment with the demand for sustainable and healthier energy sources holds significant promise, particularly in both established and emerging markets.

Europe Energy Drinks Market Segmentation By Packaging Type

• Glass Bottles
• Metal Can
• PET Bottles

Over 52% of the income generated stemmed from cans, a trend expected to persist throughout the forecast period. Evolving consumer preferences have led to an increasing inclination towards beverages packaged in cans over other alcoholic alternatives. Particularly popular among younger demographics, metal cans are favored for their lightweight nature and reduced likelihood of breakage compared to glass bottles. The impact of the coronavirus pandemic, resulting in the closure of bars, pubs, and restaurants, has further bolstered the market size for canned beverages, a trend projected to continue in the forecast period.

Meanwhile, the bottle market is anticipated to exhibit the second-fastest compound annual growth rate (CAGR) during the forecast period. Ready-to-drink technology initially emerged in bottle packaging and swiftly gained popularity. In regions like the United States, where aluminum resources are limited, the product has been introduced in glass bottles. Additionally, heightened awareness of the environmental consequences associated with plastic bottle packaging has propelled the market for glass bottles.

Europe Energy Drinks Market Segmentation By Distribution Channel

• Off-trade
• On-trade

More than 68% of the product's revenue was derived from the off-trade segment, which represents the primary source of consumption. The surging popularity of energy drinks has contributed significantly to the increase in product sales. Off-trade sales receive a boost as customers have the opportunity to personally inspect the quality, ingredients, and brands before making purchases. Major businesses favor off-trade channels, such as supermarkets and hypermarkets, due to their large client base.

On the other hand, the on-trade segment is anticipated to experience significant growth. With a growing number of bars, restaurants, and clubs now offering a wide variety of these beverages, the demand in this segment is expected to rise. Consequently, product sales are forecasted to increase in the coming years.

Europe Energy Drinks Market Segmentation- by region

• France
• Germany
• Italy
• Spain
• United Kingdom
• Rest of Europe

Turkey emerges as a leader in the energy drinks market, projected to achieve a commendable Compound Annual Growth Rate (CAGR) of 9.54%. Prominent brands in the Turkish market, such as Energy Drink 0Max and Qpower Energy Drink, are responding to the increasing demand for healthier alternatives. These brands are introducing sugar-free, low-calorie, and even calorie-free variants, targeting both athletes and health-conscious consumers.

The sports and fitness culture in Turkey, coupled with the beverage's popularity at social gatherings, contributes to the growing consumption of energy drinks, particularly among young adults.

COVID-19 Pandemic: Impact Analysis

Following the onset of the COVID-19 pandemic, there was a notable surge in the energy drinks market. This phenomenon is attributed to the adverse effects pandemics exert on individuals' physical and psychological states. With the closure of gyms and fitness facilities during the quarantine period, coupled with the mandatory work-from-home arrangements, a pervasive sense of fatigue and lethargy prevailed among the populace. Consequently, heightened awareness regarding the importance of maintaining a healthy lifestyle prompted an increased inclination towards energy drinks as consumers sought ways to address their wellness concerns amidst the pandemic.

Latest Trends/ Developments:

• In October 2023, Quality Pack International, a member of the Hell Group, and an Azerbaijani company signed an agreement to establish a joint venture called Quality Pack Caspian LLC. The objective of QPC is to set up a vertically integrated aluminum beverage can manufacturing and non-alcoholic beverage filling facility in the Alat Free Economic Zone of Azerbaijan. This facility aims to serve as a regional production hub for both local and regional beverage brands. QPC will offer empty cans for sale and also provide filling services.
• In September 2023, Red Bull introduced its inaugural limited Winter Edition in the United Kingdom. The Red Bull Winter Edition Spiced Pear combines pear flavor with a hint of cinnamon.
• In April 2023, Prime launched a new line of energy drinks featuring 200mg of caffeine and zero sugar. These beverages contain 300mg of electrolytes and only 10 calories per serving. Available in a variety of flavors including blue raspberry, tropical punch, lemon-lime, orange mango, and strawberry watermelon, these drinks cater to diverse consumer preferences.

Key Players:

These are the top 10 players in the Europe Energy Drinks Market: -

1. Congo Brands
2. Beverage Brands Holding Limited
3. Hell Energy
4. Dark Dog Drink Co.
5. Primo Water Corporation
6. The Coca-Cola Company
7. The Monarch Beverage Company Inc
8. S. Spitz GmbH
9. Red Bull
10. Shark Energy