Sports Drink Market Size, Share & COVID-19 Impact Analysis, By Type (Isotonic, Hypotonic, and Hypertonic), Brand (Gatorade, Powerade, and Others), Packaging Type (Metal, PET/Plastic, and Glass), Distribution Channel (Offline Channel and Online Channel), and Regional Forecasts, 2021 – 2028

The global sports drink market size was USD 26.24 billion in 2020 and is projected to grow from USD 27.22 billion in 2021 to USD 36.35 billion in 2028 at a CAGR of 4.2% during the forecast period. North America dominated the sports drink market with a market share of 33.54% in 2020. Moreover, the sports drink market size in the U.S. will reach an estimated value of USD 9.1 billion by 2032, driven by the increasing demand for hydration and performance solutions among athletes and fitness enthusiasts.

The impact of COVID-19 has been unprecedented and staggering, with sports drinks witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the market exhibited a stellar growth of 7.7% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden fall in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The product is a part of functional drinks mainly manufactured to help athletes to remain hydrated before and after exercise. It improves an athlete’s performance and is rich in carbohydrates, minerals, and electrolytes. These beverages also comprise water, sodium, flavors, potassium, sugar, and artificial colors.  From the past few years, the remarkable development in the industry is due to the marketing shift from offering electrolyte drinks to athletes to other consumers. The rising inclination towards fitness activities and increasing trend of participation in half and full marathons have helped in flourishing the industry.

In addition, the need for the drink is increasing at a rapid pace as they help to enhance performance, endurance and allow athletes to do vigorous exercises.  Moreover, the surging athlete population and sports players in developing countries are one of the major factors that would propel the market growth during the forecast period. For instance, as per the data issued by the National Collegiate Athletic Association (NCAA), the number of NCAA athletes increases rapidly. In 2017-18, approximately 494,992 students participated in NCAA championship sports, which was an increase of more than 3,000 since 2016-17. The migration from rural to urban areas is causing a major population change, thereby impacting consumption patterns.

COVID-19 Pandemic to Bolster Demand Backed by Rising Home Workout Sessions

The outbreak of COVID-19 has resulted in hiking the consumption of the product, which is majorly contributed by the increasing number of people working out from their homes. For instance, the data released by the Food Business News in November 2020 mentions that the United States retail sales of non-aseptic energy drinks witnessed a rise of 15% to USD 3.51 billion during 52 weeks which ended on 12th July 2020. The prominent brands such as Red Bull North America, Inc. also experienced a growth of 11% to USD 1.39 billion in 2020, and Monster Beverage Corp., Corona, Calif., enlarged by 4.9% to USD 1.23 billion. In addition, the gradual lift of curfew and lockdowns in various countries all over the world would assist in increasing outdoor activity participation, which would further help to escalate the demand for sports drinks.

LATEST TRENDS

Surging Production of Healthier Products is a Prominent Trend

Manufacturers are progressively incorporating natural ingredients as they are health-friendlier compared to regular sports beverages, which acts as an opportunity for market growth. For instance, in February 2021, a Chicago-based start-up, Good Sports, launched its natural sports drink, which is made out of 97 percent dairy. This possesses three times the electrolytes and 33 percent less sugar as compared to traditional ones. In addition, the increasing health conscious-population in developing and under-developed countries will boost the sports drink market trends.

DRIVING FACTORS

Increasing Inclination towards Physical Fitness to Propel Market Growth

The growing inclination of the millennial population towards physical and fitness-related activities, rising buying power, and willingness to pay for healthier alternatives are some of the major factors accelerating the demand for sports drinks. For instance, the data published by the International Health, Racquet & Sportsclub Association in October 2019 states that 76 percent of millennials are assessed to exercise at least once a week.

In addition to this, this healthy drink provides several benefits, such as minimizing the risk of dehydration and electrolytes in a sports beverage, replaces sweat, and maintains the balance of electrolytes in the body. Therefore, increasing awareness regarding the health benefits offered by the product among consumers is likely to augment the sports drink market growth.

Rising Focus of Manufacturers to Introduce Innovative and Healthy Flavours to Facilitate Growth

Various manufacturers are focusing more on innovations and launching organic drinks with different flavors, which will meet up the nutritional demand of consumers. This innovation will simultaneously help many companies to increase their revenues, which, in turn, would drive market growth. For instance, in January 2020, a leading brand named Powerade came up with innovations to fuel and refuel athletes. Powerade has expanded its product portfolio with two new zero-sugar innovations that offer functional hydration solutions and packaging designs. It launched POWERADE ULTRA, which includes branched-chain amino acids (BCAAs), creatine, vitamins B12, B6, and B3, and +50% more ION4 electrolytes compared to the original POWERADE.

RESTRAINING FACTORS

Presence of High Level of Sugar to Hamper Market Growth

The majority of the product available in the market contains a high level of sugar which can result in a negative impact on the health. Thus, this is acting as a restraining factor for the market growth. For instance, the average 20-ounce bottle packs of Gatorade sports drinks have 34 grams of sugar content.

SEGMENTATION

By Type Analysis

Isotonic Type Segment is Expected to Dominate the Global Market

Globally, the isotonic type is one of the leading segments in the market as it contains almost the same amount of sugar and salt as in the human body. Most of the products such as Powerade, Lucozade, and others fall into the isotonic category.  Additionally, this type of drink is one of the preferred choices by athletes, especially by middle and long-distance runners and those involved in team sports.

Hypotonic and hypertonic are also exhibiting a robust presence in the market as these beverages possess less concentration of electrolytes than the body, which let the solution to absorb quicker than isotonic drinks.

By Brand Analysis

Gatorade Segment to Hold Major Share Owing to its Increasing Demand from Athletes

Gatorade is expected to hold a major global sports drink market share. This brand holds around 70% to 80% of the share in the global sports beverage industry. Furthermore, the large customer base, consumer experiences, and brand loyalty are some of the major factors supporting the growth of this segment.

The Powerade and others segments are also observing a significant rise in consumption as these products contain essential micronutrients, which include niacin, magnesium, vitamins B12, and B6, which play vital roles in the body.

By Packaging Type Analysis

Durability Property to Keep Metal Packaging Segment at the Forefront

The metal packaging segment is anticipated to be dominant on account of its durability, assisting to decrease the product damage from import and export to far off places. Likewise, its ability to help maximize the space in the case of shipping and storage boosted its preference rate.

On the other hand, PET/plastic and glass are also becoming popularly being used as packaging material decreases the production cost as compared to metal while also possessing recyclability.

By Distribution Channel Analysis

Offline Channel Segment to Support the Growth of the Global Market

The offline channel segment is the dominating segment owing to the offering of instant purchase, which is convenient for most consumers. Likewise, the rapid development in the retail sector has led to an increase in the number of hypermarket and supermarket chains, thereby driving the segment’s growth. 

Alternatively, the online sales channels segment has observed an escalating growth as it brings relief to a large number of consumers who want to avoid browsing various sports drink products in multiple stores.

REGIONAL INSIGHTS

The Asia Pacific market is projected to have a significant presence owing to the increasing sports player population and rising trend of various fitness activities. According to the Special Olympics, in 2018, India experienced the largest growth with approximately 80,000 new young athletes. However, increasing middle-class consumers with changing lifestyles, especially in emerging economies such as China and India, are creating their own consumption trends, which are fueling the demand for naturally flavored sports drinks.

North America is a prominent market shareholder, boasting a size of USD 8.80 billion in 2020. A large number of its population participating in outdoor outings propelling the consumption of the drink is likely to fuel the demand. For instance, the Outdoor Industry.Org data mentions that in 2018, the people in the United States population were assessed on 1 billion fewer outdoor outings. Similarly, the massively high sports participation resulted in fostering the usage of sport drinks for performance enhancement helps to generate traction.

Europe is projected to display significant growth, owing to fitness clubs progressively gaining more members who needed the drink to enhance their workout. For instance, the data released by Europe Active.eu states that in 2019, there were 65 million members in European health and fitness clubs which is a rise of 3.6 percent. Likewise, the escalating number of tourists visiting Europe led to spikes in consumption, as it helps to regain their energy while touring various places. For instance, the United Nations World Tourism Organization data declares that in 2019 Europe has 710 international tourist arrivals.

South America is anticipated to exhibit considerable growth due to a large number of people employed in physically demanding types of jobs, which increase the usage of sports drinks to boost their productivity. For instance, the data published by the International Labour Organization mentions that in 2019 Argentina has 1 million people employed in the construction sector.

The Middle East & Africa is also showing a substantial development owing to the economic progress experienced by various countries assisting to increase the number of people to give importance in upholding their health and fitness. According to the World Bank.Org data, in 2018, South Africa witnessed a rise in its Gross Domestic Product of USD 368.289 billion, a rise from USD 349.554 billion from its prior year.

KEY INDUSTRY PLAYERS

Major Players are Focusing on Expanding Product Portfolios

Key players in the global market include PepsiCo, the Coca-Cola Company, BA Sports Nutrition, AJE Group, Britvic PLC., MyDrink Beverages, and others. These players are trying to meet the consumer’s requirement by manufacturing various innovative and latest products under their brands. Moreover, for expanding their product portfolios, key players are adopting various business strategies, such as product launches, partnerships, mergers, expansions, collaborations, agreements, acquisitions, and others.

LIST OF KEY COMPANIES PROFILED:

• PepsiCo, Inc (New York, United States)


• The Coca-Cola Company (Georgia, United States)


• BA Sports Nutrition (Whitestone, New York)


• AJE group (Lima, Peru)


• Britvic PLC. (Hertfordshire, United Kingdom)


• MyDrink B   everages (Minnesota, USA)


• Kraft Heinz Company (Illinois, United States)


• Nestle SA (Vevey, Switzerland)


• GlaxoSmithKline plc. (Brentford, United Kingdom)


• Abbott Nutrition co (Illinois, United States)

KEY INDUSTRY DEVELOPMENTS:

• June 2019: Coca-Cola declared the introduction of its Powerade sports beverage in India to expand its portfolio and offer a number of options to consumers in India.


• July 2019: Gatorade announced the launch of BOLT24, a low-calorie electrolyte beverage for athletes. This product includes no artificial sweeteners or flavors and is designed for hydration.

REPORT COVERAGE

The global market research report provides a detailed analysis of the industry and focuses on crucial aspects such as leading companies, type, brand, packaging type, and distribution channels. Besides this, it offers insights into the market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses several key factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation