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Caffeine is one of the most commonly consumed psychostimulant worldwide. Caffeine naturally occurs in coffee beans, tea leaves, and cocoa beans which is further added into food and beverages. The rising popularity of caffeine-based drinks is increasing the expansion of the caffeine-based drinks industry across the globe. The massive trend of ready-to-drink beverage consumption is expected to boost the demand for caffeine-based drinks.
The prominent market players are embarking upon the new product launches in different variants and flavors to attract the buyer’s attention. For instance, in February 2019, Nestle introduced NESCAFE Coffee Protein Smoothie and Cold Whipped Latte for offering a high-quality coffee experience. Nescafe Coffee protein smoothie is a plant-based coffee that is made with 100% Colombian arabica coffee, almond butter, and oats. The product is available in two flavors such as mocha and banana.
The increasing popularity of caffeine-based drinks such as caffeinated soft drinks, energy drinks, ready-to-drink coffee, and many others is anticipated to positively impact the sale of caffeine-based drinks. The refreshing aroma and flavor, coupled with the great taste of ready-to-drink coffee are anticipated to propel the market growth in forthcoming years. The prominent market players are focused on the launches of ready-to-drink coffee to fulfill consumer demand. For instance, in June 2019, The Coca-Cola Company has expanded its product portfolio with the launch of Ready-to-Drink (RTD) Costa Coffee in three variants such as Caramel Latte, Classic Latte, and Black Americano. The Costa Coffee is chilled, canned coffee brewed with coast coffee beans. Furthermore, the health benefits of caffeine consumption such as improved digestive system, reduced risk of stroke, improved energy levels are anticipated to further drive the demand for caffeine-based drinks. The variety of products offered by the key market players and innovations in the new product packaging is expected to propel the market growth in the upcoming years. For instance, in March 2018, Red Bull announced the launch of an organic soda line in the U.S. market. The new products are available in slim cans and four flavors viz, simply cola, ginger ale, bitter lemon, and tonic water. Simply Cola contains 32 mg from organic coffee beans, and all the rest are caffeinated free.
Key Market Driver -
High Popularity of Caffeine-based Drinks
Key Market Restraint -
Fluctuating Raw Material Prices
The unstable price of coffee beans is associated with the low availability of coffee beans which is anticipated to raise the final price of the product. Furthermore, the increasing consumer shift towards healthy drinks such as fruit and vegetable juice is expected to hamper the sale of caffeinated soft drinks.
The prominent players operating in the global Caffeine-based Drinks market are, Nestle S.A. PepsiCo Inc., The Coca-Cola Company, Red Bull GmbH, Dr Pepper Snapple Group, Monster Energy Company, Rockstar, Inc., Taisho Pharmaceuticals Holding Co. Ltd., AriZona Beverages Company LLC, Innovation Ventures, LLC. and Others.
The caffeinated soft drinks segment is expected to witness a significant rise during the upcoming years in the market of caffeine-based drinks. The increasing popularity of carbonated soft drinks which contain a considerable amount of caffeine into it is expected to drive the market growth. The increasing demand for carbonated soft drinks among millennials is expected to further propel the sale of caffeinated soft drinks. Furthermore, product innovation in terms of flavors and usage of natural sweeteners such as stevia is anticipated to positively impact the demand for caffeinated soft drinks. For instance, in September 2019, Rockstar has expanded its product portfolio with the launch of Rockstar XD Power soft drinks. These soft drinks contain 200 mg of caffeine per can with acids that help in protein synthesis and muscle recovery in the body.
The departmental stores are anticipated to witness a rapid surge in their revenue due to the sale of caffeine-based drinks however hyper and supermarkets hold a prominent share in the market. The increasing number of well-established departmental stores and home delivery offered by some of them is expected to further increase the sale through them. The ease of shopping due to the well-organized shelves is anticipated to propel the sale of caffeine-based drinks through hyper and supermarkets. The discounts offered by such stores are predicted to increase the sale of caffeine-based drinks.
North America is anticipated to hold a considerable share in the global market of caffeine-based drinks owing to the increasing popularity of energy drinks among the consumers. The hectic lifestyle and increased health consciousness among Americans are anticipated to propel the demand for energy drinks. The prominent market players operating in the region are focused on the merger and acquisition to increase their market prominence. For instance, in January 2019, The Coca Cola Company announced the complete acquisition of Costa Ltd. from Whitbread PLC. This acquisition covers the Costa bran which will help The Coca-Cola Company to increase its prominence in the coffee category.
Asia Pacific is expected to witness significant growth in the global caffeine-based drinks market in forthcoming years. The rapid urbanization, increasing disposable income and changing lifestyle has a major impact on the changing food choices of Asian consumers. The increasing popularity of carbonated soft drinks within the region is expected to boost the demand for caffeinated soft drinks. The rising demand for convenient and ready-to-drink beverages is expected to increase the sale of ready-to-drink coffee and tea. Furthermore, the increasing number of products in the market is anticipated to boost the sale of caffeine-based drinks. For instance, in June 2019, ITC announced the launch of Sunbean Beaten Caffe – a ready to use beaten coffee paste.
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