The global caffeinated beverage market was valued at USD 108.7 billion in 2022 and is forecasted to expand at a CAGR of 6.2% from 2023 to 2030. The growing health consciousness among consumers, in addition to the rising demand for convenience and ready-to-drink options, is driving the global caffeinated beverage market. Furthermore, the rising popularity of energy drinks and coffee among millennials is also driving the market demand. In addition, the increasing demand for coffee pods and capsules, in particular, is expected to propel the market growth.

In terms of product type, the market is segmented into energy drinks, coffee, tea, and others. Of all these, coffee is projected to be the fastest-growing segment in the coming years. This is due to growing awareness about potential health benefits associated with coffee and its high caffeine content. The introduction of innovative coffee flavors and the growing trend of cold coffee are further driving the market growth.

The market is further segmented on the basis of packaging type into cans, bottles, pouches, and others. Of all these, cans are expected to hold the largest market share in the forecast period. The increasing demand for convenience and ready-to-drink options is driving the demand for canned caffeinated beverages in the market. Moreover, manufacturers are also introducing innovative packaging and can designs for their products, which is further boosting demand.

The market is also segmented on the basis of distribution channel into supermarkets and hypermarkets, convenience stores, online retail, and others. Of all these, supermarkets and hypermarkets are expected to hold the largest market share in the forecast period. This is due to the increasing demand for ready-to-drink beverages. Moreover, the availability of a wide variety of caffeinated beverages at discounted prices is another factor boosting the market growth.

The growing demand for organic and natural caffeinated beverages is expected to provide growth opportunities for the market. Manufacturers are launching organic and natural caffeinated beverages that are free of artificial sweeteners and preservatives. For instance, in April 2021, Kona Red Corp. introduced an all-natural energy drink made from the Hawaiian Coffee fruit. The drink is said to be vegan-friendly, sugar-free, and gluten-free. Such product launches are expected to drive the growth of the market in the forecast period.

The energy drinks segment dominated the global caffeinated beverage market in 2022 and is estimated to account for a share of over 33.9%. Growing demand for high energy drinks among young adults, teenagers, and students, who are more prone to fatigue, is driving the growth of the energy drinks segment. According to an article published by the American Psychological Association, in May 2020, an estimated 30% to 50% of college students consume energy drinks during stressful study periods and/or all-night cram sessions. Furthermore, increasing demand from sportspersons is also driving the growth of the energy drinks market.

The coffee segment is anticipated to expand at the fastest CAGR of 6.4% over the forecast period. Growing demand for coffee due to its energizing effects, increasing prevalence of coffee culture, and the convenience of ready-to-drink coffee products are some of the key factors driving the growth of the coffee segment. According to an article published by Statista, in 2020, there is an increasing trend of coffee consumption in many countries including the U.S., Italy, and Brazil. In addition, growing demand for specialty coffee drinks such as cappuccino, latte, and espresso is another factor driving the growth of the coffee segment.

The supermarkets and hypermarkets segment accounted for the largest share of the caffeinated beverage products market in 2022. The growing number of convenience stores and hypermarkets, as well as the availability of different caffeinated beverages in these stores, are increasing their demand. Furthermore, the presence of attractive discounts and promotions offered in these stores is projected to fuel the growth of this segment during the forecast period. In addition, customers prefer to buy caffeine-based beverages from supermarkets and hypermarkets as they can purchase multiple products in one go.

The online segment is projected to grow at the highest CAGR of 14.0% during the forecast period. The growing popularity of online shopping and the growing penetration of the internet are some of the major factors driving the growth of this segment. In addition, online stores such as Amazon, Flipkart, and others offer a wide variety of caffeinated beverages and discounts on the purchase of these drinks. This is likely to attract more customers and increase the sale of caffeinated beverages through online stores.

The ready-to-drink (RTD) segment accounted for the largest revenue share of 65.2% in the year 2022. The convenience and growing demand for ready-to-drink beverages such as coffee, tea, and energy drinks is driving the demand for RTD caffeinated beverages. Companies such as PepsiCo, The Coca Cola Company, and Monster Beverage Corporation are focusing on expanding their RTD product portfolios to meet the rising demand. For instance, in May 2022, PepsiCo launched a new ready-to-drink coffee beverage, Starbucks Cold Brew, which is available in four flavors. This is likely to boost the demand for RTD caffeinated beverages.

The loose-leaf segment is anticipated to expand at the highest CAGR of 9.5% over the forecast period. Tea is the most popular loose-leaf caffeinated beverage and is gaining popularity due to its health benefits. Furthermore, the growing demand for specialty tea varieties is expected to drive the market for loose-leaf caffeinated beverages. For instance, in April 2022, Tetley, a brand of Tata Global Beverages, launched a new range of specialty teas, namely Tetley Super Teas, which are made of natural ingredients and are fortified with vitamins. These activities are likely to boost the demand for loose-leaf caffeinated beverages.

North America dominated the market and accounted for the largest revenue share of 32.5% in 2022. The presence of leading industry players such as Starbucks Corporation and PepsiCo Inc., along with the increasing demand for convenience and packaged food products, are key factors behind this growth. Furthermore, the rising popularity of iced coffee, energy drinks, and cold brews with natural sweeteners, as well as functional and healthy ingredients, are expected to drive the market in the region.

Europe is expected to witness the second-fastest growth in the coming years. The presence of a large number of health-conscious consumers, coupled with the growing demand for natural and organic ingredients, is likely to fuel the market growth in the region. Moreover, the increasing number of coffee shops and cafes is expected to drive the consumption of caffeinated beverages in the region. For instance, in April 2021, Starbucks opened its first store in Milan, Italy.

In this part of the Caffeinated Beverage Products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a Caffeinated Beverage Products business comes from the sale of products and services. This can include sales to retail stores, restaurants, bars, and other distribution networks. Additionally, you should consider other possible sources of revenue such as online sales, subscriptions, and promotional activities.

Projecting Expenses

In this section, all the regular expenses related to keeping the Caffeinated Beverage Products business running will be described. The list of operating expenses includes ingredients, packaging materials, wages, maintenance and repairs, utilities, insurance policies, advertising, and others.

Some of the key companies operating in the caffeinated beverage market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In October 2022, PepsiCo, Inc. launched its new caffeinated soft drink, Pepsi Energy, in the United States.

– In November 2022, Starbucks Corporation launched a range of caffeinated beverages, including a new line of ready-to-drink beverages.

– In December 2022, The Coca-Cola Company launched a new line of caffeinated juices and teas, including a new green tea product.

Some of the prominent players in the caffeinated beverage market include:

– PepsiCo, Inc.
– The Coca-Cola Company
– Starbucks Corporation
– Nestle S.A.
– Red Bull GmbH
– Monster Beverage Corporation
– Keurig Dr. Pepper Inc.
– Starbucks Corporation
– Unilever PLC
– Cott Corporation

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global caffeinated beverage products market based on product, distribution channel, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Coffee
– Tea
– Energy Drinks
– Soft Drinks
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Others

3. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the Major Drivers of the Caffeinated Beverage Products Market?
[A]: The global caffeinated beverage market is driven by factors such as the rise in the demand for convenience, increasing health consciousness, and the growing trend of consuming functional beverages. Additionally, the growing demand for energy drinks and the increasing popularity of caffeinated beverages among the younger population are expected to spur the growth of the caffeinated beverage market.

[Q]: What are the Major Regions Contributing to the Caffeinated Beverage Products Market?
[A]: North America is the largest region for the global caffeinated beverage market, followed by Europe and Asia-Pacific. The growing demand for energy drinks and ready-to-drink coffee and tea beverages is expected to drive the caffeinated beverage market in North America.

[Q]: Who are the Key Players in the Caffeinated Beverage Products Market?
[A]: The major players in the caffeinated beverage products market are The Coca-Cola Company, PepsiCo, Inc., Monster Beverage Corporation, Red Bull GmbH, Rockstar, Inc., and Arizona Beverages USA, LLC.

[Q]: What are the Growth Strategies Adopted by Market Players?
[A]: Market players are focusing on introducing new product varieties and enhancing their distribution strategies to gain a competitive edge in the market. For instance, PepsiCo has recently announced the launch of its new product, Pepsi Café, which is a caffeinated cola-flavored beverage. Additionally, The Coca-Cola Company has launched a range of caffeinated beverages in different flavors, such as Coca-Cola Plus Coffee, Coca-Cola Plus Tea, and Coca-Cola Plus Milk, to expand its product portfolio.

[Q]: What is the Potential of the Caffeinated Beverage Products Market?
[A]: The global caffeinated beverage market has been estimated to reach a value of USD $51.7 billion by 2027, growing at a CAGR of 5.2% from 2020 to 2027. The increasing demand for energy drinks, growing health consciousness among consumers, and the rise in the availability of various caffeinated beverages is expected to drive the growth of the caffeinated beverage market.