Energy Supplement Market Expected to Reach $152.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Energy Supplement Market," The energy supplement market was valued at $83.5 billion in 2021, and is estimated to reach $152.5 billion by 2031, growing at a CAGR of 6.4% from 2022 to 2031.

Energy drinks and gels are specialized nutrition products that are designed to boost performance. An energy drink is a beverage that is marketed as being able to improve mental clarity and physical performance and contains high concentrations of a stimulant ingredient typically caffeine along with sugar and frequent supplements, such as vitamins or carnitine. It has gained popularity owing to changes in consumer preference toward the consumption of energy drinks and a healthy lifestyle. Fruit flavors are majorly preferred over other flavors such as chocolate as they provide a natural taste. And are the most natural source of nutrients. Fruits contain a variety of nutrients that are good for health, which is one of the main reasons why there is an increasing demand for them in energy drinks and bar products.

Owing to the nature of the energy supplement sector, there are opportunities for small and mid-sized businesses to make investments there. Stakeholders intend to invest and expand their businesses by developing new products as the varied companies that control the food industry have a restricted reach. Small and medium-sized businesses (SMEs) can benefit from premium energy drinks, bars, and other dietary supplements. In addition, a number of businesses focus solely on the creation and marketing of items for energy supplements. Moreover, developing nations such as China and India are placing a lot of emphasis on made-in-country initiatives, which has fueled an increase in the number of small and mid-sized food production facilities. As a result, the market for energy supplements grows faster.

The COVID-19 outbreak in 2020 had a moderate impact on the market, however, the main challenges faced by the manufacturers during the pandemic were supply chain disruptions, labor shortages, partial or complete closure of manufacturing facilities, and challenges in the acquisition of raw materials.

The energy supplement market analysis is segmented into product type, end user, sales channel, and region. On the basis of product type, the market is categorized into energy drinks, energy gels, energy bars, gummies, and others. On the basis of end user, the market is categorized into kids, adults and teenagers. On the basis of sales channel, the market is fragmented into hypermarkets & supermarkets, convenience stores, specialty stores, and online sales channel. Region-wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, UK, France, Russia, Italy, Spain, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, UAE, South Africa, Saudi Arabia, and rest of LAMEA).

According to the energy supplement market analysis, by product type, energy drink gained a major share in the global market in 2021 and is expected to sustain its market share throughout the energy supplement market forecast period 2022-2031. The popularity of energy drinks, as they provide instant energy along with mental and physical stimulation is the key reason for market growth. Moreover, the surge in health consciousness along with a change in consumer lifestyle and rise in awareness toward health wellness products are expected to fuel the energy supplement industry growth.

According to the energy supplement market trends, by sales channel, the online retail segment is expected to grow during the forecast period. Online retail has gained popularity among customers primarily due to convenience in shopping, continuous service, and availability of a wide range of choices. Online platforms serve as a popular medium for the purchase of sports nutrition products. Large-scale internet penetration and the availability of a myriad of sites for shopping online are some of the major reasons for the growth of online shopping.

According to the energy supplement market opportunities, region wise, the North America Energy supplement market is expected to witness significant growth at a CAGR of 5.8% during the forecast period. The rise in demand for functional food, energy drinks, meal replacements, and on-the-go snacking is driving the energy supplement market growth in North America. The penetration of sports nutrition is higher among those aged 18-50 years. The demand for nutrition products is being driven by an increase in the number of gym-going and fitness-conscious people who want to stay healthy and fit. Thus, above-mentioned factors are likely to support the growth of the energy supplement market during the forecast period.

The players operating in the energy supplement industry have adopted various developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Herbalife international of Brighter Foods Ltd, Kind LLC, McKee Foods Corporation, NuGo Nutrition, Premier Nutrition Inc, Probar LLC, Quest Nutrition, The Kellogg Company, AriZona Beverage Co., Living Essentials, LLC, National Beverage Corp., Rockstar, Inc., Suntory Holdings Limited, and The Coca-Cola Company.

Key finding of the study

• • • The energy supplement market size was valued at $83,456.3 million in 2021, and is estimated to reach $152,468.5 million by 2031, registering a CAGR of 6.4% from 2022 to 2031. 
    • By end user, the teenagers segment is estimated to witness the significant growth, registering a CAGR of 7.1% during the forecast period.
    • In 2021, depending on sales channel, the hypermarket and supermarket segment was valued at $37,995.6 million, accounting for 45.5% of the global energy supplement market share. 
    • In 2021, the U.S. was the most prominent market in North America, and is projected to reach $31,943.4 million by 2030, growing at a CAGR of 5.4% during the forecast period.