MarketsandMarkets has projected the global sports and energy drinks market to reach $52 billion by 2016 in a new report. The report states that sales of sport and energy drinks surpassed $40 billion in 2010 and estimates that the category would grow at a compound annual growth rate of three percent each year.
While North America and the Asia Pacific region encompass the largest share of the market, the report indicated that European consumption of sports and energy drinks is expected to grow at a rapid pace within the next five years.
Additionally, the report states that rising health awareness among consumers is playing a major role the growth of the category and spurring innovation among beverage related companies. Of particularly note is the fact that Coca-Cola, PepsiCo, and Red Bull are consistently adding new sugar-free and “light” drinks to their mix of products and also incorporating organic and natural ingredients into existing beverages.
The report also indicated that the sports and energy drinks category will continue to penetrate new and untapped markets such as senior citizens. Notably, a recent Wall Street Journal story reported the appeal of products like 5-Hour Energy growing in popularity among a number of active baby boomers and sold alongside elderly-focused products like Ensure nutrition shakes.