South America Energy Drinks Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.86 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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South America Energy Drinks Market Analysis
The South America Energy Drink Market is projected to register a CAGR of 3.86% during the forecast period.
Energy drinks are among the most fascinating and dynamic beverage categories owing to their innovative ideas, intriguing flavors, and versatile positioning options. Customers like the stimulants' energizing effects, which led to rising demand for energy drinks that are manufactured from naturally occurring sources of energy like guayusa, guarana, and others. This new generation of energy drinks offers additional marketing opportunities for a range of positioning options since they contain useful components like proteins, BCAAs, vitamins, or minerals.
Energy drinks are typically popular among South America's millennials and Gen Z population. It delivers the needs and requirements of the consumer like living a hectic lifestyle, suffering busy schedule, bachelors, hostelers, and others which might offer potential growth to the market. Furthermore, Brazil followed by Argentina is the fastest-growing market for the beverage sector in the South American region. It also benefits from the relative affordability of energy drinks, which adds to its appeal.
In the South American market, lowering sugar content is one of the strong driving factors in the beverage sector. The demand for energy drinks and carbonated water is growing however the overall beverage sector is declining. Sales of carbonated beverages and energy drinks are rising as a result of more health-conscious consumers' demand for less sweet and naturally derived products. Thus, the demand for sugar-free and reduced-sugar options is driving the market for energy drinks.
South America Energy Drinks Market Trends
Foodservice and E-commerce Channels Significantly Creating Shelf Space to Energy Drinks
Energy drinks have changed from being an aspirational commodity sold generally in retail stores and gas stations to becoming relevant in daily life. The most common morning purchases in the South American market are energy drinks, chips, and beef. The drinks are sold directly to customers looking for a way to get through the workdays by street sellers at traffic junctions. Energy drinks have been popular due to the concept of a beverage that may provide both refreshment and an energy boost, enabling individuals to stay alert and increase productivity for longer.
Energy drink is consumed in South America as it is an exciting option with wellness attributes. Cosumer-led health and wellness trends are also taking a toll on the continued growth of the energy drink segment among other beverages. Modern grocery supermarkets and significant US/European hypermarket chains are continuously expanding their operations in the region to ensure the availability of beverages. This, in turn, has led to increased consumption of the products in the region. For instance, Campbell Soup Company generated around 22% of consolidated net sales from continuing operations in 2022 through Wal-Mart Stores Inc. and its affiliates. Moreover, with the desire for new flavor experiences among consumers, energy drinks are considered an alternative to soft drinks. It has also found its space in nightclubs as a social drink or beverage mixer.
Growing Consumer Preference Towards Healthy Drinks in the Region
In the past few years, the consumption of energy drinks has drastically increased, especially among adolescents and young people. Energy drinks are aggressively advertised with the claim that they would offer you more energy and raise your mental and physical performance. Recently, manufacturers have shifted their attention away from athletes to millennials or the gen z population. Advertising for energy drinks is strong in locations where teens and young adults congregate. The average age of energy drink drinkers is between 13 and 35 years. Energy drinks are the second most popular dietary supplement used by teenagers. This is the result of consumers' increased attention to fitness and health. Energy drinks are marketed as an alternative to carbonated drinks. Thus, there has been a significant rise in the number of consumers switching from carbonated beverages to energy drinks in recent years, thus, boosting sales in the region. According to the Brazilian Association of Soft Drinks and Non-Alcoholic Beverages (ABIR), in 2021, consumption of energy drinks in Brazil amounted to approximately 0.87 liters per person, slightly up from 0.71 liters per person a year earlier
South America Energy Drinks Industry Overview
Emerging national economies, modernizing retail channels, and rising middle-class incomes present new growth opportunities for manufacturers of energy drinks in South America. Manufacturers are ensuring that their brands are carefully aligned with rising consumer demand for healthier options, particularly among an important core of younger, urban consumers. Players are also continuously making efforts to effectively communicate with the new, urban demographic in the region due to the increasing urban population and prevalence of migrants in the region. Additionally, manufacturers are also striving to strengthen their product offerings by establishing strategic partnerships. In 2022, Keurig Dr. Pepper established a strategic partnership with Red Bull to distribute the energy drink in the Mexican market. The agreement also allows for the distribution of any future ready-to-drink beverages developed or launched by Red Bull in the country.
South America Energy Drinks Market Leaders
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Red Bull GmbH
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The Coca-Cola Company
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Anheuser-Busch InBev SA/NV (Ambev SA)
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PepsiCo, Inc.
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Globalbev Bebidas e Alimentos SA
*Disclaimer: Major Players sorted in no particular order
South America Energy Drinks Market News
- In November 2022, Grupo Petrópolis launched a range of fruit-based energy drinks under the brand name TNT Energy Drink. The first flavor of the extended product line is Mango Summer, which consists of a mix of fruits with a high presence of mango flavor. It is available in 473ml and 269ml cans in the South American market.
- In May 2022, Coca-Cola's energy drink company Monster Beverage Corporation launched multiple new products across South America. The company launched VR46 The Doctor in Argentina and expanded its product offering in Chile by introducing Melon Mania Lemon Heads and Organce Dreamsicle. Additionally, the company launched Monster Mango Loco in Colombia and Monster Ultra Gold in Puerto Rico.
- In February 2022, Acer Inc., a Taiwan-based hardware and electronic gadgets manufacturer launched the PredatorShot energy drink for gamers in Brazil. The company claims that it contains taurine and caffeine which stimulate concentration and deliver more energy to the players during online matches. The product has been introduced in the country with a price of USD 7.42 (pack of 6 cans of 269 ml) which can be purchased through the online Acer online store.
South America Energy Drinks Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Product Type
- 5.1.1 Drinks
- 5.1.2 Shots
- 5.1.3 Mixers
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5.2 Packaging Type
- 5.2.1 Bottle (Pet/Glass)
- 5.2.2 Cans
- 5.2.3 Other Packaging Types
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5.3 Distribution Channel
- 5.3.1 On-trade
- 5.3.2 Off-trade
- 5.3.2.1 Supermarkets/Hypermarkets
- 5.3.2.2 Convenience Stores
- 5.3.2.3 Online Retail Stores
- 5.3.2.4 Other Off-trade Channels
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5.4 Geography
- 5.4.1 Brazil
- 5.4.2 Argentina
- 5.4.3 Rest of South America
6. COMPETITIVE LANDSCAPE
- 6.1 Strategies Adopted by Leading Players
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Red Bull GmbH
- 6.3.2 The Coca-Cola Company
- 6.3.3 PepsiCo, Inc.
- 6.3.4 Mutalo Group
- 6.3.5 Anheuser-Busch InBev SA/NV (Ambev SA)
- 6.3.6 AJE Group
- 6.3.7 Globalbev Bebidas e Alimentos SA
- 6.3.8 Grupo Petrópolis
- 6.3.9 Bebidas Grassi
- 6.3.10 Integralmédica Suplementos Nutricionais S/A
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablitySouth America Energy Drinks Industry Segmentation
Energy drinks contain high levels of stimulant ingredients, typically caffeine, sugar, and frequent supplements, such as vitamins or carnitine, which are marketed as a product capable of improving mental alertness and physical performance. The market is segmented by product type, packaging type, distribution channels, and geography. By product type, the market is segmented into drinks, shots, and mixers. By packaging type, the market is segmented into bottles (pet/glass), cans, and other packaging types. Based on distribution channels, the market is segmented into on-trade and off-trade. Off-trade is further sub-segmented into supermarkets/hypermarkets, convenience stores, online retail stores, and other distribution channels. By geography, the market is segmented into Brazil, Argentina, and the Rest of South America. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
| Product Type | Drinks | |
| Shots | ||
| Mixers | ||
| Packaging Type | Bottle (Pet/Glass) | |
| Cans | ||
| Other Packaging Types | ||
| Distribution Channel | On-trade | |
| Off-trade | Supermarkets/Hypermarkets | |
| Convenience Stores | ||
| Online Retail Stores | ||
| Other Off-trade Channels | ||
| Geography | Brazil | |
| Argentina | ||
| Rest of South America |
South America Energy Drinks Market Research FAQs
What is the current South America Energy Drink Market size?
The South America Energy Drink Market is projected to register a CAGR of 3.86% during the forecast period (2024-2029)
Who are the key players in South America Energy Drink Market?
Red Bull GmbH, The Coca-Cola Company, Anheuser-Busch InBev SA/NV (Ambev SA), PepsiCo, Inc. and Globalbev Bebidas e Alimentos SA are the major companies operating in the South America Energy Drink Market.
What years does this South America Energy Drink Market cover?
The report covers the South America Energy Drink Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South America Energy Drink Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South America Energy Drink Industry Report
Statistics for the 2024 South America Energy Drink market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Energy Drink analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
