Energy Drinks Lead $23 Billion Functional and Natural RTD Beverage Market

Packaged Facts has pegged the functional and natural RTD beverage market at $23 billion in a new report. The report indicated that, in particular, sales of energy drinks, along with RTD teas and sports drinks, have been the driving force behind growth in the market with each segment showing gains of between 5 and 10 percent.

Based on the strength of these growth categories, Packaged Facts estimates that, despite the economic recession, the entire market enjoyed a compound annual growth rate (CAGR) of almost 6 percent since 2006.

However, the report singled out energy drinks as leading the way by “offering consumers a distinctive benefit that they need and want” and noted that while the category initially gained success by advertising a “bad boy” image to a youthful target market, sustained growth has been based on the actual energy benefits that the drinks continue to deliver.