The global sports drinks market is projected to advance at a CAGR of 8.1% during 2016–2022. Among the various product types, the isotonic category generated the highest revenue in 2015.
The developed countries of North America and Europe generated the major demand in the sports drinks market up till 2015, predominantly due to the high disposable income of the people here. The lack of awareness about the benefits of sports drinks in developing countries has been a key factor for the minor market share of these countries in the market. Moreover, the low purchasing power of consumers here has also been restricting the growth of the market.
However, the rise in consumers’ purchasing power and level of awareness pertaining to the benefits of sports drinks in APAC are projected to offer considerable growth opportunities to the sports drinks market in the forecast period. This is why the emerging economies of the Asia-Pacific (APAC) region are projected to be the primary drivers for the growth of the market during the forecast period.
The rise in the urbanization rate is acting as a driving force for the progress of the sports drinks market. Further, the changing lifestyle of consumers has persuaded them in adopting healthy drinks. Owing to these factors, sports drinks, including non-protein drinks, protein drinks, and herbal drinks, are witnessing a growing demand. Further, the shift in consumer behavior, with more of them wanting to achieve their health goals faster, has pushed sports drinks manufacturers to develop improved products. In recent years, APAC and African countries have experienced urbanization at a fast pace. According to United Nations, by 2050, the global urbanization level would be above 50%.
Distribution channel plays a major role in spreading awareness about sports drinks The rise in the penetration level of large retail spaces, such as supermarkets and hypermarkets, and online shopping, primarily in emerging economies, is leading to the growth of the food and beverages (F&B) industry, and in turn, the sports drinks market. Retail chains offer products at economical prices, when compared to other types of stores. Further, the increase in the purchasing power of consumers in emerging economies has led to the mass purchase of F&B products, including sports drinks, at supermarkets and hypermarkets.
Some of the major players in the global sports drinks market are PepsiCo Inc., Monster Beverage Company, The Coca Cola Company, Glanbia PLC, Clif Bar & Company, and MusclePharm Corporation.
Sports Drinks Market Segmentation
By Distribution Channel