The shortage of Chinese ingredients, raw materials, and semi-finished goods is the latest example of the global economy’s dependence on products made in China, from iPhones to auto parts to pharma. Much of the fallout may still be hidden and is likely to play out over months. Even before the coronavirus outbreak, business investment was already in poor health in the United States. It fell in the last three quarters of 2019. Some analysts now expect more companies could soon announce reductions in their capital spending.
Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Caffeinated Beverage market.
Trusted Business Insights presents an updated and Latest Study on Caffeinated Beverage Market 2019-2030. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Caffeinated Beverage market during the forecast period (2019-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Industry Insights, Market Size, CAGR, High-Level Analysis: Caffeinated Beverage Market
The global caffeinated beverage market size was valued at USD 202.63 billion in 2018. The market is estimated to expand at a CAGR of 6.81% from 2019 to 2025. Rising awareness about the health benefits of caffeine drinks, such as increased metabolism and strength, will boost the product demand, thereby augmenting the market growth.
Moreover, rising income levels and improved standards of living in emerging regions, such as China and India, are anticipated to have a positive impact on the market growth. In addition, rapidly expanding e-commerce sector across the globe provides numerous growth opportunities to the market.
Global companies, such as Nestle S.A., PepsiCo Inc., and Red Bull GmbH, are entering the emerging markets, which, in turn, will support the overall market growth. Moreover, increased R&D and usage of natural sweeteners in caffeinated beverages will fuel their demand.
Furthermore, extensive marketing campaigns and promotional activities done by these manufacturers through offline and online platforms will significantly affect the industry growth. However, awareness about the adverse health effects, such as insomnia and stomach ache, of high consumption of these beverages may hinder the growth to some extent.
Product Insights of Caffeinated Beverage Market
Carbonated soft drinks product segment accounted for the largest market share of more than 54% in 2018. The segment will remain dominant over the years to come due to high demand for RTD and carbonated soft drinks across the globe. Moreover, product innovation in terms of flavors and usage of with natural sweeteners, such as stevia, will drive the demand further.
The energy drink segment is estimated to register the fastest CAGR from 2019 to 2025. Rising demand for these beverages due to hectic lifestyle and increased health consciousness is the major growth-driving factor. Moreover, a separate section for these drinks in hypermarkets and supermarkets will have a positive impact on the segment growth.
Distribution Channel Insights
Offline distribution channel is expected to be the largest segment over the next few years. Availability of branded products at convenience stores is anticipated to be the key factor driving the segment growth. In addition, increasing number of specialty stores, convenience stores, hypermarkets, and supermarkets across the globe will support the segment growth. Online channel is projected to be the fastest-growing segment at a CAGR of more than 8% over the forecast period.
The segment growth is driven by the rising number of e-commerce websites, such as Bakery Cart, Natures Basket Ltd., and Amazon, offering a wide range of soft and energy drinks of different brands. Such platforms provide doorstep delivery services and offer branded products at discounted prices, which will also boost the product sales through online channels. Moreover, online services provided by Quick Service Restaurants (QSRs), such as McDonald’s and Wendy’s, has positively affected the segment growth.
Regional Insights of Caffeinated Beverage Market
In terms of value, North America holds the largest market share of the global caffeinated beverage market on account of rapid urbanization and demand for energy drinks. Moreover, presence of key companies in countries, such as U.S. will have a positive impact on the regions growth. Asia Pacific, on the other hand, is expected to register the highest CAGR of 8.12% over the forecast period, on account of rising demand for carbonated beverages. The soft drinks industry in India is forecasted to expand at a healthy CAGR over the forecast period. Moreover, demand for energy and RTD drinks also contributes to the regions growth. In addition, product innovation by leading companies will boost the market development.
Market Share Insights of Caffeinated Beverage Market
Rising demand for energy and carbonated soft drinks has led to constant product innovation, thereby increasing market competition. The market is identified by several strategic activities, such as acquisition and mergers, product innovations, and capacity expansion, initiated by key manufacturers in the industry. Some of these companies include Dr Pepper Snapple Group; Monster Energy Company; Nestle S.A.; PepsiCo, Inc.; and Red Bull GmbH.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Caffeinated Beverage Market Research Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the global caffeinated beverage market report on the basis of product, distribution channel, and region:
Product Outlook (Revenue, USD Billion, 2019 – 2030)
Carbonated Soft Drinks
Energy Drinks
RTD Tea & Coffee
Others
Distribution Channel Outlook (Revenue, USD Billion, 2019 – 2030)
Online
Offline
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