Energy Ingredients Market Size, Share & Trends Analysis Report By Product (Caffeine, Creatine, Taurine, Ginseng), By Application (Food, Beverage, Supplements), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global energy ingredients market size was valued at USD 19.39 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 7.4% from 2022 to 2030. The market is gaining momentum and witnessing a high demand owing to the rising demand for food products such as margarine, cold cuts, bakery products, spreads, yogurt, and milk sausages, which are produced using protein ingredients. According to an article published in Informa Markets, a platform that connects buyers and sellers in September 2022, 37% of consumer snacks on bars are made from proteins. The increasing consumption of these products among health-conscious and elderly consumers is fueling the growth.

The outbreak of COVID-19 has also spurred the demand for food items that are considered better-for-you options, which drives the intake of products made from energy ingredients such as drinks with caffeine. According to a blog published by Med Alert Help, in January 2021, 85% of people in the U.S. consume at least one caffeinated drink, to increase attention and concentration levels during the quarantine of COVID-19. Furthermore, the trend of consumers seeking healthy products that can be easily incorporated into their everyday routines and lifestyles has opened new avenues for energy ingredients.

The growing trend of caffeine as a psychoactive stimulant in various beverages, including coffee, tea, soda, and energy drinks, is expected to increase the sales of products with caffeine as their main ingredient. According to an article published in Nutritional Journal, a peer-reviewed journal from the American Society of Nutrition in April 2022, about 90% of adults in the U.S. consume caffeinated products. Furthermore, caffeine enhances various aspects of mental, physical, and occupational performance, which is expected to drive the growth of the segment in the years to come.

The growing use of energy ingredients by gym goers would help increase the sales of these products manufactured by key companies active in the industry. According to an article published by Noob Gains, a website that helps beginners learn how to build muscle and lose body fat in November 2021, nearly half of all high school athletes in the U.S. use creatine (44%) for physical and athletic performance benefits. Furthermore, increasing consumption of energy-boosting supplement products to maintain optimal health even after the pandemic is likely to spur the demand for energy ingredients in the supplements industry in the coming years.

The growing consumer focus on energy ingredients such as taurine due to its various health benefits will drive the growth of the segment. The ingredient is added to energy drinks as a nervous system depressant and to have a stimulating effect on the brain. Hence, key manufacturers in the industry are launching innovative products with taurine as their major ingredient to increase product visibility among consumers. For instance, in May 2022, Performance Drink Group, Inc., a new force in the manufacturing of unique sports nutrition and energy drinks, announced the launch of ‘Pro Boost’, a new 2 FL OZ (60 ml) zero-calorie, zero-sugar energy supplement drink. The product includes energizers like Taurine, Malic Acid, N-Acetyl L-Tyrosine, Glucuronolactone, Caffeine, and L-Phenylalanine.

Growing consumer health consciousness is a significant factor in the food industry’s transformation. Customers not only tend to favor healthier meals, but they are more willing than ever before to pay for a non-GMO food product with no artificial ingredients. With the number of food companies looking for additives that include more nutrients in their products, thus the demand for ginseng is expected to rise in the upcoming years. For instance, in April 2021, Youguth, a South Korean probiotic supplement brand, launched its fermented red ginseng with probiotic supplements in Singapore; the product boosts immunity and health.

Product Insights

The caffeine segment held the largest market share of 87.7% in 2021 and is expected to maintain dominance over the forecast period. The growth of the caffeine segment as an energy ingredient can be attributed to the fact that it helps to boost energy by restricting caloric intake. Moreover, caffeine stimulates the sympathetic nervous system, which plays a role in suppressing hunger, enhancing satiety, and increasing the breakdown of fat cells to be used for energy, which is expected to integrate well with the market’s growth in the forecast period. According to an article published by Molecular Diversity Preservation International (MDPI), in July 2021, approximately 52% to 68% of adolescents consume energy drinks with average caffeine content ranging from 75 to 240 mg.

The creatine segment is projected to register the fastest growth during the forecast period with a CAGR of 13.0% from 2022 to 2030. With increasingly fragmented consumer ideas about nutrition, nutrients such as creatine and protein are on trend. Consumers are embracing a wider variety of ingredients and product formats as they seek energizing food and drink products. Hence, responding to increased consumer demand for these products, key market players are launching products to cater to the supply side. For instance, in August 2019, Glanbia Nutritionals launched new heat-stable creatine for use in ready-to-drink (RTD) beverages called CreaBev. Such initiatives are expected to bode well with the growth of the market.

Application Insights

The beverage segment accounted for the largest market share in 2021. The growing popularity of energy drinks owing to the production of instant energy with mental and physical stimulation will help magnify the scope of the segment. Hence, key manufacturers are launching drinks with caffeine as their main ingredient to support consumer health. For instance, in February 2022, Starbucks Coffee Company, in partnership with PepsiCo’s North America Coffee JV, launched Starbucks Baya Energy: RTD beverage using caffeine found naturally in coffee fruit alongside antioxidant vitamin C for a ‘boost of feel-good energy’. Such launches with energy ingredients will majorly propel the market in the next seven years.

The supplements segment is projected to register the second fastest growth during the forecast period with a CAGR of 7.5% from 2022 to 2030. The increasing number of supplement launches with ingredients such as taurine and caffeine will provide opportunities for market players to innovate existing products with various energy-based ingredients. According to William Reed Ltd., approximately 80% of Americans use dietary supplements with energy-based ingredients such as thiamine, riboflavin, and niacin. Moreover, a change in consumer lifestyle and a rise in awareness toward health wellness products are expected to fuel the segment’s growth in the near future.

Regional Insights

Asia Pacific accounted for the maximum share of the global energy ingredients market in 2021. Primary factors for driving the market are the preference for alternatives to traditional supplements, and modernizing lifestyle demanding the intake of caffeinated drinks. For instance, in February 2021, Heineken Asia Pacific Beverages entered the energy drink market using ingredients from natural sources such as caffeine, a super ingredient in the product that is said to bode well among health-conscious consumers. Furthermore, increased consumption of these drinks due to their claims to improve performance, endurance, and alertness will increase product visibility among consumers.

Europe is expected to witness a CAGR of 7.6% in the forecast period. The rising trend of ‘nutrition declaration’ on the package or label of the product will help attract consumers to these ingredients in the years to come. For instance, in May 2022, Prinova Europe launched a high-purity trehalose ingredient, enduracarb, for athletic endurance. The ingredient is slow-acting and double-sugar, designed to fuel muscles over long periods. Furthermore, benefits such as increased cognitive performance, improved attention, and reaction speed primarily due to caffeine will support the growth of the market.

Key Companies & Market Share Insights

The energy ingredients market is fragmented with the presence of many developed global players and many developing key market entrants. These players are engaging in major acquisition and promotional activities to increase their customer base and brand loyalty. Some of the initiatives by the key players in the market are:

• In April 2021, PepsiCo launched the Rockstar Energy beverage with hemp seed extract. The product also contains caffeine, guarana, and taurine

• In May 2022, Nexba launched Natural Energy, U.K.'s first caffeine and sugar-free energy drink, loaded with vitamins and prebiotics

• In January 2021, Babasucco launched the new avocado-based Energy Estratto drink in Italy, which it claims harnesses all the properties of avocado

Some prominent players in the global energy ingredients market include:

• BASF SE

• Spectrum Chemical Mfg. Corp.

• RFI Ingredients

• Korea Ginseng Corporation

• Orkla

• ILHWA CO., LTD.

• Applied Food Sciences, Inc. (AFS)

• Naturalin Bio-Resources Co., Ltd.

• Changsha Huir Biological-Tech Co., Ltd.

• Sinochem Pharmaceutical Co., Ltd.

• KOEI KOGYO CO., LTD

• Aarti Industries Ltd.

Energy Ingredients Market Report Scope

Global Energy Ingredients Market Segmentation

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segment from 2017 to 2030. For this study, Grand View Research has segmented the global energy ingredients market report based on product, application, and region:

• Product Outlook (Volume, Metric Tons; Revenue, USD Million; 2017 - 2030)

  • Caffeine

  • Creatine

  • Taurine

  • Ginseng

  • Others

• Application Outlook (Volume, Metric Tons; Revenue, USD Million; 2017 - 2030)

  • Food

  • Beverage

  • Supplements

  • Others

• Regional Outlook (Volume, Metric Tons; Revenue, USD Million; 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa