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As more consumers seek to optimize their energy levels, energy has become one of Asia's most significant functional beverage trends. Learn what’s driving this trend and how brands can seize this opportunity.
The global functional beverage market is worth $300.2 billion, with continued growth ahead at a forecast CAGR of 5.3% from 2022 to 2027.1 At $99.2 billion, energy drinks lead the category (ahead of yogurt beverages and functional juices), accounting for one-third of functional beverage sales.2
| Beverage Segment | Sales ($ billion) |
|---|---|
| Energy drinks | 99.2 |
| Yogurt beverages | 63.7 |
| Functional juices | 40.8 |
| Dairy alternative beverages | 34.7 |
| Sports drinks | 29.1 |
| Functional waters | 16.8 |
| Sports protein drinks | 9.5 |
| Functional teas and coffees | 5.06 |
| Functional carbonates | 1.06 |
This interest in energy shows up across generations, as more than half of Gen Z (63%), Millennial (58%), Gen X (57%), and Boomer (53%) consumers are feeling tired or fatigued some of the time in an average week.5
Though Gen Z reports the most tiredness, Gen X is the most likely to take action to boost their energy levels, whether through improving diet, sleep, or exercise or taking functional energy products.6
| Generation | % Who Plan to Boost Their Energy Levels in the Next 12 Months |
|---|---|
| Gen Z | 50% |
| Millennials | 52% |
| Gen X | 58% |
| Boomers | 45% |
Besides simply wanting more energy to combat tiredness, many consumers associate having good energy levels with other positive effects on wellness—including cognitive health (32%), mood and mental wellbeing (40%), and sleep health (52%).7
According to consumer research, how people view and manage their energy needs may be more varied than previously thought, with some taking a reactive approach to low energy levels (e.g., seeking a kick start or to refuel after exercise) and others taking a proactive approach (e.g., wanting sustained energy or to perform their best).8
This points to opportunities in two different kinds of energy products—those that deliver a quick burst of energy and those that provide sustained vitality. A quick burst energy drink meets an immediate need, such as mental focus for a meeting or exam or physical energy for a workout. For 73% of Asian sports nutrition consumers, energy boosting is an appealing product claim.9
A sustained vitality energy drink would meet the needs of consumers who want to be proactive about optimizing their daily energy and overall health. The rapid expansion of eSports presents an opportunity in sustained vitality energy drinks for gamers—to support the long duration of mental focus required, as well as nutrient needs related to visual health, for example.
Choosing the right ingredients to optimize energy for these different situations and provide other relevant functional nutrition is essential to delivering real benefits that keep consumers coming back.
Caffeine (including natural sources like green tea, coffee, and guarana), L-carnitine, amino acids, B vitamins, and minerals (particularly iron and magnesium) are among the most useful energy drink ingredients. Many botanicals, such as ashwagandha, rhodiola, astragalus, ginseng, and functional mushrooms, are also trending in energy products.10
We invite you to explore the many possibilities in the expanding energy drink segment. Our consumer insights, expertise in functional beverage ingredients, and portfolio of vitamins, minerals, amino acids, and other energizing ingredients make us well-positioned to support your brand in pursuing these exciting opportunities.
Contact Glanbia Nutritionals to discuss the options for creating targeted custom premixes to meet your consumers’ diverse energy needs.