Energy Drinks Market in Latin America 2017-2021
About Energy Drinks
The energy drinks market in Latin America has been rapidly growing over the last few years, and the trend is expected to continue during the forecast period. The market's growth can be attributed to a number of drivers; some being the increased consumption of energy drinks among the younger population, launch of energy drinks with natural ingredients, and the inclusion of new types and flavors in energy drinks. Since energy drinks have a high content of caffeine and other stimulants, most consumers use them to stay alert at workplaces and playing fields.
Technavio’s analysts forecast the energy drinks market in Latin America to grow at a CAGR of 11.92% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the energy drinks market in Latin America for 2017-2021. To calculate the market size, the report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Energy Drinks Market in Latin America 2017-2021
Technavio recognizes the following companies as the key players in the energy drinks market in Latin America: Grupo Petrópolis, Monster Energy, PepsiCo, and Red Bull.
Other Prominent Vendors in the market are: AJE, Corporación Lindley, Empresas Polar, Montevideo Refrescos, Brasil Beverages, Postobon, and Quala.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is launch of energy drinks made using natural ingredients. With the increasing consumer concerns regarding the health issues associated with the excessive consumption of energy drinks on a regular basis, vendors have now started to focus on producing energy drinks based on natural ingredients, like with extracts from organic guarana and organic raw green coffee beans.”
According to the report, one driver in the market is increasing urbanization in Latin America. The increasing urbanization in the countries in Latin America is yet another driver for the growth of the energy drinks market in the region. According to the World Bank, almost 77.1% of the total population in Latin America resides in urban areas. Latin America has the highest urban population in the world and it is set to grow in the future. Urbane consumers have started opting for energy drinks that can provide them with instant energy to cope up with their hectic lifestyles. Energy drinks are one of the most preferred ready-to-drink beverages for instant energy needs. Since consumers are looking for beverages that can be consumed instantly and come in ready-to-drink packaging, energy drinks are gaining traction over other caffeinated beverages like tea and coffee, as the latter need to be brewed before they can be consumed.
Further, the report states that one challenge in the market is negative image of energy drinks among consumers. Several harmful effects of the consumption of energy drinks have been reported in the region in recent times, owing to which, a negative image of the product has been created among consumers. This factor is a challenge for the market, and can restrict the market's growth rate in the coming years. It has been reported that the continuous consumption of energy drinks can cause several health problems and can even lead to premature deaths in healthy adults. To overcome such health impacts, players are ramping up their marketing activities and trying to bring out more natural energy drinks using ingredients such as organic Brazilian guarana and organic raw Brazilian coffee seed.
Grupo Petrópolis, Monster Energy, PepsiCo, Red Bull, AJE, Corporación Lindley, Empresas Polar, Montevideo Refrescos, Brasil Beverages, Postobon, and Quala.