Energy Ingredients Market Size Worth $36.79 Billion By 2030

Energy Ingredients Market Growth & Trends

The global energy ingredients market size is expected to reach USD 36.79 billion by 2030, expanding at a CAGR of 7.4% from 2022 to 2030, according to a new report by Grand View Research, Inc. Increasing consumption of energy-enhancing products and growing health consciousness are some of the factors anticipated to drive the market during the forecast period. For instance, in April 2020, Taisho Pharmaceutical Holdings released Japan's first caffeine-free energy drink containing the botanical ingredient, enXtra. The product helps improve alertness and focus for up to five hours with or without caffeine. Furthermore, energy ingredients promote enhanced mental as well as physical health. Such factors will also aid in market growth.

In addition, increased consumer interest in snacks that are high in fiber, minimally processed, and contain energy-based ingredients will bode well with the growth of the market. According to an article published in Molecular Diversity Preservation International (MDPI), in January 2021, energy drink consumption increased steadily in young adults from 0.5% to 5.5% in France. Also, the rising popularity of products with various cognitive health benefits will boost the growth of the market in the forecast period considered.

Caffeine was the largest segment in 2021 and is expected to maintain its dominance during the forecast period. The consumption of healthier beverages, including caffeinated energy & sports drinks, is witnessing substantial year-on-year growth. The consumption of energy drinks by the U.S. population has increased over the years. On the other hand, the demand for carbonated drinks has been decreasing as their consumption increases the risk of cancer and causes other health ailments. According to a report published by the Association of Military Surgeons of the United States in 2021, approximately 75% of deployed U.S. military personnel consume energy beverages/drinks. Out of the 627 surveyed soldiers, 29.2% of respondents reported at least daily use, and 16.1% drank more than two energy drinks per day.

The taurine segment was valued as the second fastest-growing segment in 2021. Functional foods are enriched with energy ingredients such as antioxidants, caffeine, ginseng, taurine, and fatty acids to provide a positive effect on human health beyond the intake of essential nutrition. Manufacturers in the market are launching energy drinks and beverages with the aforementioned ingredients. For instance, in October 2021, Belgium-headquartered AB InBev, the world’s largest brewer, launched the Budweiser Beats energy drink in India, made with natural caffeine, B-vitamins (B3, B5, B6, B12), and taurine.

The energy ingredients industry is fragmented in nature, with a major share almost equally divided among key players of the market such as 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; and Aarti Industries Ltd.

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Energy Ingredients Market Report Highlights

• Asia Pacific is expected to contribute a majority of the revenue share to become the largest segment in 2021 owing to the rising consumer awareness regarding lifestyle disorders and the resultants’ shift toward healthier alternatives

• The creatine segment is projected to register the fastest growth during the forecast period as these ingredients boost energy and power for a "quick burst"

• The beverage is predicted to become a faster-growing segment during the forecast period owing to the growing popularity of energy drinks

Energy Ingredients Market Segmentation

Grand View Research has segmented the global energy ingredients market based on product, application, and region:

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

• Caffeine

• Creatine

• Taurine

• Ginseng

• Others

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

• Food

• Beverage

• Supplements

• Others

Energy Ingredients 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

List of Key Players in the Energy Ingredients Market

• 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.