Energy Drinks Are Here to Stay
The one constant across a pre-workout routine, late-night study sessions, and before setting out on a long drive? Energy drinks. These are beverages that contain stimulants, typically caffeine and taurine, and are marketed for their mental and physical invigoration. The demand for these drinks has risen meteorically, driven by health trends, a young consumer base, and people wanting to experiment with their food choices.
The energy drink market in India has emerged as a massive success in recent years. Read on to understand how these colourful, zesty drinks have captured people’s interest and retail space and what trends energy drink manufacturers in India are following.
Overview of the Energy Drink Market in India
Source: Statista
The energy drink market in India has seen rapid growth since Red Bull sold its first product in 2009 and created the category in the country. The Austrian major’s distinctive cans would become commonplace, spurred by robust marketing, its easily identifiable logo, and a catchy slogan. Despite launching the segment, it catered to a niche audience and had little competition. But that has changed in the last couple of years with the introduction of players aiming for the mass-consumer segment—notably, PepsiCo’s home-brewed Sting launched in 2017. Thanks to its affordable pricing, the brand has had a volume share of 90% in six years since its introduction. The energy drink market is now appealing to various consumers, especially those in the 25–34 age group. The interest is due to a shifting consumer mindset aided by an influx of products, each with unique flavours, combinations, and functional claims.
And the country is genuinely buying into the energy drink hype. According to some industry sources, Indians consumed over 570 million litre energy drinks in 2023, thirty times as much as in 2018. That’s over 2 billion 250 ml bottles consumed! So,vbv just how much is the energy drink industry worth? The answer is nowhere near the money minted by soft drinks, but it is still pretty big. A report estimates that the energy drink market size in India is at USD 6.29 bn in 2024, poised to hit over USD 7.5 bn in 2029. Revenues are healthy for various players’ respective energy drink brands. Energy drink manufacturers in India, with the help of beverage flavour manufacturers, can capitalise on the possibilities in the market by launching innovative products, carving out a significant share of the growing market share in India.
Popular Trends in the Indian Energy Drink Market
The energy drink market in India is primarily driven by wellness trends. Consumers are prioritising healthy lifestyles, and energy drinks complement people’s fitness regimens and sports activities. While functional beverages that help with hydration are gaining traction, zero-sugar options have also been entering the market. Amidst these health-centric trends, diverse consumer preferences are making manufacturers innovate and find new flavours and combinations they can sell through various channels.
Consumer Behaviour and Preferences
What’s driving consumer behaviour, then? It’s several things. People are seeking energy drinks that resonate with their way of living and values. Young, health-conscious individuals, for example, would be interested in purchasing a low-caffeine drink with a unique flavour. Unsurprisingly, taste happens to be a huge deal for consumers, even as some swear by traditional ones. Flavour aside, functionality is a significant determining factor. Consumers are showing a preference for drinks with enhanced benefits, from improved attention to enhanced athletic performance. Following the focus on wellness, consumer preference might incline towards drinks made from all-natural ingredients. Herbal flavours and floral combinations could be in vogue soon as a result. Finally, brand image is vital: Consumers go with choices they’ve come to trust and believe will reflect their lifestyles.
Key Players in the Indian Energy Drink Market
Source: Mordor Intelligence
Now, the big question: What is the most popular energy drink in India? Red Bull has long been associated with the entire industry. However, the introduction of Sting’s PET bottles has quickly created a new mass-consumer base, making it an instant success with sellers and buyers alike. It has even gone on to lead the domestic energy drinks market. These two brands and a few others (across the premium, mid-price, and mass-market segments) make up the Indian energy drink market. As things stand, the significant energy drink manufacturers in India are PepsiCo, Red Bull, Monster Beverage, and The Coca-Cola Company. Indian energy drink company Ocean Beverages is also making a play with its range of plant-based caffeine drinks.
Symega’s Expertise
In today’s competitive energy drink market, capturing attention requires more than just vibrant packaging or catchy slogans—it calls for innovative products that truly connect with consumers. That’s where Symega can make a difference. Our sensory experts and beverage specialists have a keen grasp of food & beverage trends that could elevate products and gain attention. We offer a wide range of solutions and formulation support, helping you build the right energy drink for the right audience from scratch!
Our flavours and natural colours are calibrated precisely to your demands, giving your products the perfect taste profile and look. Whether it’s straightforward traditional fruit flavours like citrus and mango or exotic combinations like watermelon and spice, we understand shifting customer tastes and market dynamics like no other. As for our colours—they are derived from plant pigments with farm-level traceability, assuring you of the highest health standards. They also exhibit instant solubility and heat and light stability properties, which give beverages the desired qualities.
The Future of the Energy Drink Market in India
The future of the Indian energy drink market looks promising. We can expect continued growth and exciting developments driven by several factors. The biggest will probably be urbanisation, with more people craving on-the-go energy solutions to support their hectic schedules. At the same time, there could be more mass-market segment entrants in urban and rural markets, giving Sting something to think about.
Owing to their surging popularity and association with vitality, it’s highly likely that many people will be introduced to these drinks over other caffeinated and carbonated beverages like colas. And more consumers with disposable incomes will be willing to spend on energy drinks, meaning premium leaders like Red Bull could still thrive in the face of stiff competition. Meanwhile, manufacturers will address consumers’ persistent fitness demands by aggressively positioning their brands in the wellness space. Watch out for more drinks with natural ingredients like ginseng and ginger taking over!
Soon enough, the energy drinks list in India could expand and welcome new players to cater to a new generation having a new beverage of choice!
Innovation Could Fuel the Industry Further
The energy drink market in India is experiencing a significant upward trend. Recent developments and consumer trends have led to a renaissance, besides ensuring these flavourful drinks are now indelibly a part of people’s lives! While consumers must be wary of potential health concerns and drink in moderation, energy drink manufacturers in India can innovate to find solutions for these problems. In addition to low-sugar/zero-sugar variants, beverage makers can team up with partners working on the cutting edge of technology and science to create options that are healthy and devoid of potential harm. Who figures it out first remains to be seen. But one thing is undeniable—the future is exciting and full of possibilities.
FAQs
1. Which is the most popular energy drink in India?
Red Bull has long led the premium segment, being a household name due to its strong advertising and brand recognition. However, there has been a slight shift as PepsiCo’s Sting has made inroads in the market over the past few years with its affordably priced PET bottles. The product is highly popular with many consumers and has taken the energy drink market in India by storm since its introduction
2. How much is the energy drink industry worth?
The global energy drink enterprise is massive, catering to a growing audience willing to experiment with new flavours and experiences. The revenue of energy and sports drinks sold worldwide was estimated to be USD 195 bn in 2023. For India, this revenue is estimated to stand at USD 6.29 bn in 2024. And these numbers are expected to rise, reflecting their mass appeal!
3. Are there any health concerns associated with energy drinks?
Energy drinks are not meant to be dietary supplements and should be consumed in moderation. Drinking several energy drinks in a short span is dangerous and could lead to severe complications. The beverages have been linked to cardiovascular issues, even affecting metabolism and renal function. There are also concerns about the effects of excessive caffeine—too much caffeine from these drinks could cause anxiety, insomnia, heart problems, nausea, and restlessness. Additionally, high sugar levels in energy drinks are undesirable and pose other health risks. Energy drinks are not recommended for children and adolescents, as the stimulants in them can adversely impact the nervous system.
4. What is driving the growth of the energy drink market?
There are a combination of factors pushing the energy drink market. Firstly, consumers are seeking wellness trends as they prioritise health and fitness. Energy drinks are thus complementing workout sessions and physical activities, with consumers increasingly seeking low-sugar/zero-sugar options. Hydration is a big selling point, and consumers are opting for functional drinks that deliver added value. Amidst the health-conscious trend, diverse consumer preferences are leading to innovations in the industry and the rise of new flavours, further driving the market in more directions.
