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Sports Drink Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global sports drink market was valued at USD 19.6 billion in 2022 and is expected to expand at a CAGR of 8.3% from 2023 to 2030. The rising demand for sports drinks is driven by the growth of the health and fitness industry, with more people focusing on their physical and mental health and engaging in physical activities. Furthermore, the increasing awareness about the benefits of sports drinks such as improved hydration, electrolytes, and energy boost is driving the market. Additionally, advances in the form of new product launches are expected to influence the players in the market.
The increasing number of health & fitness club memberships and the growing awareness about health and fitness across the world is driving the market. Furthermore, the growing popularity of sports and sports drinks as a healthier alternative to soft drinks and energy drinks has also increased the demand for sports drinks. Additionally, the growing preference for organic sports drinks is driving the market. For instance, in June 2021, Nuun launched Nuun Sport + Immunity, a new electrolyte drink mix made with organic ingredients, such as organic cane sugar and organic natural flavors.
The rising demand for convenient packaging such as single-serve sachets and bottles is propelling the growth of the market. Additionally, the increasing number of product launches with lower sugar content is expected to drive the market. For instance, in 2020, Gatorade launched Gatorade Zero, an electrolyte-filled drink with zero sugar. Furthermore, the growing trend of veganism is also boosting the demand for vegan sports drinks. For instance, in June 2021, CORE Hydration, a brand of The CORE Nutrition, LLC, launched CORE Organic Plus+, a vegan sports drink with 20 grams of plant-based protein and a blend of electrolytes for hydration.
The increasing demand for functional drinks is driving the market. Functional beverages are formulated with added ingredients such as vitamins, minerals, and herbs, which gives them an added health benefit. Furthermore, the growing number of promotional activities by key players and the growing number of sponsorship deals for sports teams and athletes are driving the market. For instance, in May 2021, Gatorade signed a multiyear endorsement deal with NBA player Zion Williamson. Moreover, the rising disposable incomes, especially in developing countries such as India, China, and Brazil, are expected to drive the market.
Product Insights
The isotonic segment dominated the market in 2022 and accounted for a share of around 38.2%. Isotonic drinks provide energy, minerals, and hydration for athletes. These drinks contain carbohydrates, electrolytes, and minerals to replenish the body with energy, electrolytes, and minerals in order to increase performance and reduce muscle fatigue. This type of sports drink is generally recommended for athletes and sportspersons who engage in moderate to intense physical activities for more than an hour. Moreover, the rising trend of fitness and health among consumers is driving the demand for isotonic sports drinks globally.
The low-calorie segment is expected to witness the fastest CAGR of 8.0% during the forecast period. Low-calorie sports drinks are gaining immense popularity among consumers due to the rising prevalence of obesity and diabetes. The growing demand for sugar-free and low-calorie beverages is also driving the growth of the segment. According to the World Health Organization, in March 2020, the percentage of obese adults worldwide was estimated to be around 13%. Moreover, the rising awareness among consumers regarding the health benefits of sports drinks is also contributing to the market growth.
Distribution Channel Insights
The offline retail segment is the leading distribution channel and is expected to continue its dominance during the forecast period. The segment held a market share of over 74.3% in 2022. Offline retail outlets such as supermarkets & hypermarkets, convenience stores, and specialty stores are preferred by consumers for the purchase of sports drinks. The availability of a wide range of beverages, including sports drinks, in the offline stores has been a major factor driving the segment’s growth. Furthermore, the presence of professional staff in offline stores enables customers to get advice on product selection and also encourages them to purchase sports drinks.
The online segment is expected to witness the highest CAGR of 9.2% during the forecast period. This growth is majorly attributed to the increase in the number of e-commerce websites and apps offering sports drinks. Growing internet penetration and smartphone usage have been encouraging consumers to purchase sports drinks online. Additionally, online stores often offer discounts and promotions such as free shipping and buy one get one free, which have made online shopping more attractive for consumers.
Type Insights
The ready-to-drink (RTD) segment is estimated to hold the largest market share of 85.9% in 2022. The increasing popularity of RTD sports drinks among athletes and gym-goers has been the primary factor driving the growth of the segment. Furthermore, RTD sports drinks offer convenience and portability, which makes them an ideal choice for athletes and gym-goers. Moreover, the increasing demand for innovative flavors and packaging from consumers is complementing the growth of the RTD segment.
The powder segment is expected to expand at a CAGR of 8.3% during the forecast period. The convenience and cost-effectiveness associated with the powder segment have been instrumental in its growth. Furthermore, the increasing availability of powdered sports drinks in different flavors is a key factor driving the segment. For instance, in April 2021, Gatorade announced the launch of its new Gatorade Endurance Formula powder, which is available in five flavors.
Regional Insights
North America dominated the market and accounted for the largest revenue share of over 42.8% in 2022. An increase in the number of gym goers and sports enthusiasts in the region is driving the market growth in this region. The expansion of e-commerce platforms is further providing a boost to the market in the region. For instance, in May 2021, Amazon launched the Gatorade Thirst Quencher Sports Drink on its platform for consumers in the U.S.
Asia Pacific is expected to be the fastest-growing region in the coming years. The increasing number of health-conscious consumers and growing demand for energy drinks are some of the key factors behind this growth. The rise in the disposable income of consumers in the region is further expected to increase the demand for sports drinks. For instance, in August 2021, Carabao Group launched a line of sports drinks in the U.S. to tap into the growing demand in the region.
Financial Projections
In this part of the sports drinks 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 sports drinks products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a sports drinks products business comes from sales of sports drinks, retail sales, online sales, and bulk sales. Here you will find a list with a description of each of them and other possible sources of profit such as advertising, sponsorships, endorsements, and product placement.
Projecting Expenses
In this section, all the regular expenses related to keeping the sports drinks products business running will be described. The list of operating expenses includes costs related to product development and marketing, wages, insurance policies, utilities, and rent. Other expenses include packaging and shipping costs, purchasing of raw materials, and taxes.
Key companies & market share insights
Some of the key companies operating in the sports drink 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 May 2022, PepsiCo launched the Gatorade Zero, a sugar-free sports drink with zero sugar and no artificial flavors.
– In June 2022, Coca-Cola launched the Powerade Zero, a sugar-free sports drink with no artificial sweeteners.
– In July 2022, Red Bull launched the Red Bull Energy Drink, a sugar-free sports drink with no artificial flavors.
Some of the prominent players in the sports drink market include:
– PepsiCo, Inc.
– The Coca-Cola Company
– Red Bull GmbH
– Suntory Beverage & Food Limited
– Gatorade
– Monster Beverage Corporation
– Dr Pepper Snapple Group
– Nestle S.A.
– GlaxoSmithKline plc
– BodyArmor
Global Sports Drink Market Segmentation
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 sports drink products market based on product, distribution channel, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Carbonated Sports Drinks
– Isotonic Sports Drinks
– Hypotonic Sports Drinks
– Energy 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
Frequently Asked Questions
[Q]: What are the Key Players in the Sports Drink Market?
[A]: Major companies in the sports drink market include The Coca-Cola Company, PepsiCo, Inc., Gatorade, Red Bull GmbH, Monster Beverage Corporation, Vitamin Water, Powerade, and Isostar.
[Q]: What are the Major Drivers of the Sports Drink Market?
[A]: Major drivers of the sports drink market include an increase in the number of sports events, health awareness, and the rise in the number of health clubs and gyms.
[Q]: How is the Sports Drink Market Segmented?
[A]: The sports drink market is segmented by product type into isotonic, hypertonic, and hypotonic drinks. Isotonic drinks are the most popular type of sports drink, and they are used to replace electrolytes and fluids lost during physical activity.
[Q]: What is the Potential of Product Innovation in the Sports Drink Market?
[A]: Product innovation is playing a major role in the sports drink market. Companies are increasingly introducing new flavors and formulations that cater to specific needs and preferences of athletes and fitness enthusiasts.
[Q]: Which Region Offers the Largest Opportunity for Sales of Sports Drinks?
[A]: The Asia Pacific region is expected to be the largest market for sports drinks, with an absolute dollar opportunity of $10.3 B (USD). This can be attributed to rising health consciousness, the increasing number of health clubs, and the growing popularity of sports.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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