Energy Ingredients Market Size

Energy Ingredients Market size was valued at USD 21.8 billion in 2022 and is estimated to expand at over 6.4% CAGR from 2023 to 2032. Firstly, the increasing awareness of the importance of maintaining high energy levels and overall well-being is propelling the demand for energy-boosting products.

Consumers are seeking natural and effective solutions, which leads to the second driver, the rising popularity of natural and plant-based ingredients. Ingredients like ginseng, green tea extract, and guarana are preferred for their perceived health benefits and minimal side effects. Additionally, the growth of the fitness and sports nutrition industry plays a pivotal role, with athletes and fitness enthusiasts seeking energy ingredients to enhance their performance. Moreover, the hectic pace of modern life and the need for sustained alertness are driving the demand for products that incorporate energy-boosting ingredients.

The use of certain energy ingredients, especially when used in high concentrations or in combination with other substances, can raise safety and regulatory concerns. Ensuring the safety and proper labelling of products containing energy ingredients is essential, as regulatory changes or negative health incidents can impact the market's reputation and sales. Maintaining transparency and adhering to safety standards is crucial to navigate this potential pitfall.

COVID-19 Impact

The COVID-19 pandemic had a mixed impact on the energy ingredients market. On one hand, the market experienced heightened demand for certain energy-boosting products as consumers sought ways to combat fatigue and stress during lockdowns and the pandemic's ongoing challenges. This led to increased sales of energy supplements and ingredients. However, supply chain disruptions, restrictions on manufacturing and distribution, and economic uncertainties created challenges for the industry.

Additionally, the pandemic prompted greater consumer scrutiny of ingredient safety and product quality, requiring companies to ensure transparency and compliance with safety standards. As the situation evolved, the market adapted to meet shifting consumer needs while navigating the complex challenges brought about by the pandemic.

Energy Ingredients Market Trends

The energy ingredients industry is witnessing several key trends. There's a significant shift towards natural and plant-based energy sources as consumers prioritize health and sustainability. Adaptogens, green tea extract, and ginseng are gaining popularity due to their perceived health benefits. Secondly, the industry is experiencing a surge in innovation and product diversification, with energy ingredients being incorporated into a wide array of food and beverage products, including snacks, beverages, and even cosmetics, catering to various consumer preferences.

Lastly, there is a growing focus on personalized and functional nutrition, with consumers seeking energy-boosting ingredients that align with their specific health goals and lifestyles. These trends reflect an industry adapting to evolving consumer demands and a greater emphasis on holistic health and well-being.

Energy Ingredients Market Analysis

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Based on Ingredients, the caffeine segment dominated around USD 8.2 billion revenue in 2022. Caffeine's effectiveness in enhancing alertness and combating fatigue is well-documented, making it a tried and trusted choice for consumers seeking an energy boost. It acts as a central nervous system stimulant, promoting wakefulness and mental clarity, which aligns with the demands of today's fast-paced lifestyles. Moreover, the familiarity of caffeine, found naturally in coffee and tea, offers a sense of safety and comfort for consumers. Despite the emergence of alternative energy ingredients, caffeine remains a cornerstone in the industry due to its well-established efficacy, consumer acceptance, and adaptability to a range of formulations.

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Based on application, the energy drinks application segment accounted for 37.88% of the energy ingredients market share in 2022. Energy drinks offer a convenient and on-the-go solution to consumers seeking a quick and effective energy boost. The beverage format allows for the rapid absorption of energy ingredients, providing a near-instantaneous increase in alertness and vitality, which appeals to individuals looking for an immediate pick-me-up. Moreover, the marketing and branding of energy drinks, often associating them with an active lifestyle and enhanced performance, resonate with a broad consumer base, including students, athletes, and professionals.

Based on Distribution channel, the offline distribution channels segment will gain remarkable momentum during the forecast timeline. One of the primary reasons is the sensory experience associated with purchasing and consuming energy-related products. Many consumers prefer to physically assess and select the products they consume for factors like taste, texture, and packaging. In offline retail settings, such as brick-and-mortar stores, consumers can interact with the product directly, read labels, and make informed decisions based on their preferences. Furthermore, retail stores often offer the advantage of immediate product availability, which caters to the impulse-buying behaviour often seen in the market.

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North America energy ingredients market size held over USD 7.4 billion in 2022. The region has a strong culture of wellness and fitness, with consumers increasingly focused on maintaining active and healthy lifestyles. This heightened health consciousness drives demand for energy-boosting products. North America is also characterized by a diverse and innovative food and beverage industry that readily incorporates energy ingredients into a wide range of products, from energy drinks and bars to functional foods and dietary supplements, catering to various consumer preferences.

Energy Ingredients Market Share

Some of the major companies operating in the energy ingredients industry are:

• Archer Daniels Midland (ADM)
• Cargill
• Ingredion
• Tate & Lyle
• Glanbia
• DuPont Nutrition & Biosciences
• Kerry Group

These companies focus on strategic partnerships, new product launch & commercialization for market expansion. Furthermore, these companies are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the market.

Archer Daniels Midland (ADM) operates in agricultural commodities and food processing. The company is headquartered in Chicago, Illinois, and has operations in over 190 countries. ADM is a producer of energy ingredients, including caffeine, guarana, taurine, B vitamins, creatine, beta-alanine, L-glutamine, BCAA, coenzyme Q10, alpha lipoic acid, ribose, L-carnitine, and maca.

Energy Ingredients Industry News

• In July 2023, Britvic UK based soft drink company acquired Extra Power energy brand in Brazil, which will be an important extension of company’s operations in Brazil.
  

The energy ingredients market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Billion & in Kilo Tons Units from 2018 to 2032, for the following segments:

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Market, By Ingredients

• Caffeine
• Guarana
• Taurine
• B Vitamins
• Creatine
• Beta-Alanin
• L-Glutamine
• BCAA
• Coenzyme Q10
• Alpha Lipoic Acid
• Ribose
• L-Carnitine
• Maca

Market, By Application

• Energy Drinks
• Sports Nutrition
• Dietary Supplements
• Pharmaceuticals

Market, By Distribution Channel

• Online
• Offline

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Indonesia
  • Malaysia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Egypt