North America Sports and Energy Drinks Market: An Outline
As per the International Health, Racquet and Sportsclub Association, health and fitness industry in the United States of America is sized at $30 billion and has been growing annually at the rate of 3%-4% for the last ten years. An increasing number of citizens are gravitating towards keeping themselves fitter for a healthier life in the long run. With a burgeoning fitness industry, products like energy drinks undergo a colossal sales boost and experience robust market growth.
Sports and energy drinks are beverages that are rich in vitamins, essential minerals, and electrolytes. For an average athlete, these are an easy source of vital nutrients and provide instant energy desired by the body right after working out. North America sports and energy drinks market is poised to grow abundantly with regular people becoming interested in fitness related activities. According to an assessment done by International Health, Racquet and Sportsclub Association, in 2018, around 20% of American adults had a fitness club/gym membership. This number is expected to double in the next ten to fifteen years.
Analysts at IndustryARC have been studying the market trends of North America sports and energy drinks market, and have estimated the market size in 2018 to be valued between $24 billion to $25 billion. The market is expected to grow at a standard CAGR of 5%-6% during the forecast period of 2019-2025. The report is titled “North America Sports & Energy Drinks Market: By Product Type (Sports Drink, Energy Drink); By Distribution Channel (Retail, On Trade, Vending Machine) – Forecast (2019-2025).”
North America Sports and Energy Drinks Market: Key Drivers and Challenges
Sports and energy drinks are extensively popular in the North American market. Red Bull, the world’s most popular energy drink brand is valued at $10 billion and made it to Forbes’ most valued brands in 2017. In the following year, the company sold 6.79 billion cans throughout the world owing to high demand from 171 countries. Statistics of this magnitude explain why North America sports and energy drinks market will continue to experience unprecedented growth. Several factors are essential in inducing and maintaining progress in the market.
- Fitness Is The New Health Insurance
Healthier lifestyles result in the reduction of medical and healthcare bills which acts as an incentive for people to embrace fitness. Introduction of budget-friendly gymnasiums and fitness mobile apps add to the growth of people’s interest in fitness. Sports and energy drink market profits massively on this factor by employing market strategies that center around the importance of fitness and how isotonic and hypotonic energy drinks act as a catalyst for the achievement of fitness goals. Red Bull, for example, has been consistently sponsoring sports events in North America and organizes fitness competitions to expand the financial growth of the company.
- Attractive Packaging Lures Customers
Energy drinks companies try to target the association of power and endurance with their products. This helps them in influencing the buying needs of their customer base by encouraging them to try their products for strength purposes. North America sports and energy drinks market thrives on the 250 ml measurement of its cans, which are easily portable and abundantly present on our supermarket shelves. Logos also influence the customer mindset and lead to market growth. Energy drinks like Monster, Fusion, and Jolt Cola feature thunder, and lightning in their logos implying an instant boost of energy that the product offers. Red Bull, on the other hand, features two bulls fighting which is a symbol of strength.
- Energy Drinks Regulation in Mexico
Despite zero negative occurrences reported in Mexico, the government of the country has imposed irregular taxes on energy drinks. Gladiator, an energy drink of Coca Cola Group sells at $66 per liter in Mexico which is 15 dollars more than its actual price in the North American market. Sales of energy drinks are prohibited for everyone under the age of 18, and these drinks are banned in all restaurants and bars. Regulation in Mexico remains to be a challenge for the market, and companies have been waiting earnestly for the government to ease the taxation rules.
Association of health and power with wellness has been a major trend in the consumer products domain, all the adjacent arcade have capitalized on this blooming phenomenon and thus owing to this, sports and energy drinks without being an exception will continue to experience accentuated sales in North America. The market will bask on the premise of athletes advertising the requirement of an instant increase of energy drinks after working out. North America sports and energy drinks market growth will be propelled by a simultaneous growth in the fitness industry.
Talk to one of our sales representative about the full report by providing your details in the link below:
The Report Available for the Regions Below: