Project report for Energy Drink

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Introduction

In India, Energy drinks Industry have been associated with many health risks, such as an increased rate of injury when usage is combined with alcohol, and excessive or repeated consumption can lead to cardiac and psychiatric conditions. The energy drinks in the Indian market is composed of five different ingredients which include vitamin, sugar, caffeine, Taurine, and Guarana. Populations at risk for complications from energy drink consumption include youth, caffeine-naïve or caffeine-sensitive, pregnant, competitive athletes and people with underlying cardiovascular disease. This growth enables industry players to concentrate more on health and energy drinks, thereby driving the energy drink market. 

An energy drink is a type of drink containing stimulant compounds, usually caffeine, which is marketed as providing mental and physical stimulation. They may or may not be carbonated and may also contain sugar, other sweeteners, herbal extracts, taurine, and amino acids. They are a subset of the larger group of energy products, which includes bars and gels, and distinct from sports drinks, which are advertised to enhance sports performance. There are many brands and varieties in this drink category. Coffee, tea and other naturally caffeinated drinks are usually not considered energy drinks. Other soft drinks such as cola may contain caffeine, but are not considered energy drinks either. Some alcoholic drinks, such as Buckfast Tonic Wine, contain caffeine and other stimulants.

Market potential & Strategy

The global energy drinks market size was valued at INR 39510 Crores in 2019, and is expected to grow at a CAGR of 7.20% to reach INR 64100 Crores by 2026. Energy drink is a beverage that contains high concentration of stimulants, majorly caffeine, taurine, ginseng, guarana, and others. It enhances physical performance along with mental alertness. India Energy Drink market is projected to grow at a CAGR of 9.22% during the forecast period, 2020-2025. Energy drinks are caffeinated beverage products, which exceed 145 mg of caffeine per liter. The products are marketed as non-alcoholic beverages, which are consumed to boost energy. The increase in health consciousness along with change in consumer lifestyle and rise in awareness toward health wellness products are expected to fuel the market growth in the near future. In addition, the growth of the global energy drinks market industry is driven by rise in popularity among teenagers. However, caffeine overdose may cause hypertension, nausea, restlessness, and other associated health risks that limits the energy drinks industry growth. On the contrary, change in consumer preference toward consumption of beverages and healthy lifestyle are expected to create lucrative opportunities for market expansion during the forecast period. Easy availability of energy drinks in diversified platforms ranging from modern trade to online sales channel has resulted in expansion market. Moreover, increase in penetration of retail sales has augmented the growth of the energy drinks market.

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