Canada Energy Drinks Market is expected to register a healthy CAGR of 11.7% in the forecast period of 2019 to 2026. The new market report contains data for historic year 2017, the base year of calculation is 2018 and the forecast period is 2019 to 2026.
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Drivers:
CHANGING LIFESTYLE PATTERNS:
In recent time the lifestyles of an individual have found to undergo many changes since the early phase of the life (Paleolithic) to industrialization and hence it has led today’s world in a drastic changes in all form such as living style and others. These changes in lifestyle are also responsible for changes in dietary patterns.
Changes in family and social environment have also takes a place due to health services and better education facilities have also led revolutionized change in children’s as well as parents lifestyle and eating habits.
In recent time women are more employed than that of past time but it is found to be more hectice to them in maintaining both house work as well as office work.
- In August 2018, according to Australian Government, Australia comprises 47.0% of women employed where 25.0% women working full-time and 21.9% are women working part-time.
- In June 2014, according to officevibe, out of 26,000 of the people, 60 % of the people fill stressful at workplace in country U.S.
DEMAND FOR GREATER FUNCTIONALITY IN DRINKS & NEW PRODUCT LAUNCH ENERGY DRINKS:
Energy drinks and their ingredients have been deemed safe by regulatory authorities around the world. It provides energy and refreshment to the people once they consume it.
Energy drinks demand is increasing day by day as per increase changing in life style. Now days the lifestyle also have become hectic due to more work pressure in technical field. These led the requirement loss of instant energy to the people having stress during or before work and that are fulfilled by this energy drink.
In past two decades have found that there are more beverage processing changes than what occurred in the previous time or past time.
There are number of products have been launched in the recent time which are helping this market to grow and they are
- In October 2017, PepsiCo Inc, an American company launched energy drink Sting in India. This is the second attempt made by the company to crack the energy drink market in the country India. With this launch this American company expanded its business in India.
- In January 2018, Britvic plc. (U.K.) launched new health and sustainability program. It helped consumers in making healthier choices, reduces the company’s environmental impact and supports well-being in communities.
RISING HEALTH-CONSCIOUSNESS AMONG CONSUMERS:
In recent time younger consumers are the most willing people thinking about their well-being and wellness-oriented lifestyle care. The people with better education and facilities of nutrition, fitness, work-related stress and the environment come under "health-conscious consumer profiles".
Food manufacturers as well as restaurant operators in today’s era are well suggested to take these trends seriously and react consequently.
This means that many of the traditional marketing strategies for products that gives health benefits may give growth to this particular market.
- In February 2015, according to frachiseindia, 30.0%-35.0 % people are health conscious due to increase in sedentary lifestyles and consequent rise of lifestyle related ailments and for the fitness.
- Half or about 49.0% of respondents globally believe they are overweight and they want to lose their weigh. Some diet concern people who are health conscious and taking using products from manufactures with proper nutrition can help this market to grow.
Restraints:
PRODUCT RECALLS:
Product recall is the procedure to recall the launched product from the market due to frequent causes related to quality of the products, device design, software, and non-conforming material or component issues and issues concerning to the safety of people. Therefore, recall poses a significant restraint for the medical device industry.
Various products are recalled from the market by FDA due to various reasons such as manufacturing defects or people safety or quality of the products.
Product recalls are made for the products with problems that could affect the safety of the consumer. This recalling of product is carried out by traders
- In November 2018, Red Bull North America recalled two batches of their Red Bull energy drink. This is because of degraded products, producing an off color and taste as well as elevated levels of some ingredients.
- In June 2015, Food Safety and Standards Authority of India (FSSAI) ordered to recall the restless energy drinks as it was found that the drinks are ‘unsafe’ to the consumers. These energy drinks are Monster, Tzinga and Cloud 9 which was produced by using unsafe ingredients.
STRINGENT REGULATIONS AND STANDARDS
STRINGENT REGULATIONS:
There is variety of regulations of energy drinks made that defers throughout the world where United States has less stringent systems. The U.S. Food and Drug Administration (FDA 2003) code of federal regulations, nr 21CFR182.1180, lists caffeine, a main component in energy drinks, as generally recognized as safe (GRAS) when used in cola drinks, at a level of 0.02% caffeine, totaling 71 mg for a 12-oz soft drink.
The FDA that tells to take initial step is in regard to the regulation of energy drinks which is as simple as requiring the manufacturer. And that is caffeine content as well as supply warnings.
- In December 2014, at EU level, the Consumer Information Regulation (EU) 1169/2011 provided provisions regarding the labelling of beverages with an added caffeine content of more than 150 mg/litre.
Opportunities:
INCREASE IN DEMAND FOR LOW-CALORIE ENERGY DRINKS
Energy drinks are the functional beverage that contain low or zero sugar and provides energy to its consumer. With changing in life style and increasing health consciousness of people are more getting attracted to supplements that provide instant energy in daily life.
- Red Bull GmbH (Germany) provides red bull zero calories energy drinks that contain zero calories and zero sugars.
- XYIENCE, INC. (U.S.) provides the energy drinks that contain zero sugars, zero calories and available in all natural flavours and the products the company provides are XYIENCE Cherry Lime, XYIENCE Mango Guava, XYIENCE Frostberry Blast, XYIENCE Blue Pomegranate, XYIENCE Cran Razz, XYIENCE Fruit Punch, XYIENCE Tangerine, XYIENCE Melon Mayhem, XYIENCE Fuji Apple and XYIENCE Wild Grape.
HECTIC LIFESTYLE AND NEED FOR INSTANT ENERGY:
The busy hectic lifestyles, the modern daily living, family, social life and the pressures of juggling a demanding job cannot be avoided as all are important. Such a huge continuous stress puts people with considerable strain on the body. This also reduces the immune function as well as the activity of the body such as physical and the mental. So there are requirements for certain nutrients to get instant energy. Selected nutrients in daily diet can support the body to reduce such mental and physical stress and the demands of a hectic and stressful lifestyle.
Hectic lifestyles can be made joyful with wide acceptance of functional products such as energy drinks, fortified food and others. These products are manufactured in such a way that they provide needed energy or required energy in the body instantly
- In November 2015, according to the busy lifestyle, work related stress statistics by country are 40.0 % in U.S., 60.0% in Japan, 35.5% in Australia and 40.0% in France.
- According to MedBroadcast, about 40% people in country Canada skip breakfast which leads in increasing their risk for morning fatigue and may require instant energy to perform work with better activeness.
- The hectic lifestyle of people with work pressure needs more instant energy to perform with better activeness and may also help the market to grow in market.
Challenges:
SIDE EFFECTS OF ENERGY DRINKS
- There is an increase in market and degree of consumption of the energy drinks every year due to its benefits and people’s enhanced life style. But as the coin has two sides, energy drink also has pros and cons. There are some harmful physiological and psychological effects of this energy drink on human being. The psychological effects of energy drinks are affecting body functions such as cognitive functions, mood, sleep, decision making, and overall impact on well-being and quality of life (QOL).
- In March 2018, according to University health news, about 56.0% percent of college students consuming mixture of energy drink and alcohols (Alcoholic energy drinks) and due to this the caffeine offsets the sedating and intoxicating effects of alcohol.
- The consumption of energy drinks may lead to several serious problems related to health of the person. So these are the major cause which can hamper the growth of this particular market.
Market Trends:
On the basis of product type, the market is segmented into alcoholic and non-alcoholic. In 2018, non alcoholic segment is dominated the Canada energy drinks market with 83.4% market share and growing at the highest CAGR of 11.9% in the forecast period of 2019 to 2026
On the basis of type, the market is segmented into organic and inorganic. In 2018, inorganic segment is dominated the Canada energy drinks market with 68.0% market share and growing at the highest CAGR of 11.5% in the forecast period of 2019 to 2026.
On the basis of application, the market is segmented into before exercise, during exercise and recovery. In 2018, before exercise segment is dominated the Canada energy drinks market with 47.1% market share and growing at the highest CAGR of 12.1% in the forecast period of 2019 to 2026.
On the basis of consumption time, the market is segmented into before 11 am, 11-2 pm, 2-5 pm, 5-9 pm and post 9. In 2018, before 11 am segment is dominated the Canada energy drinks market with 37.8% market share and growing at the highest CAGR of 12.4% in the forecast period of 2019 to 2026.
On the basis of ingredients, the market is segmented into caffeine, taurine, guarana, vitamin b, l-carnitine, antioxidants and others. In 2018, taurine segment is dominated the Canada energy drinks market with 27.9% market share and growing at the highest CAGR of 13.0% in the forecast period of 2019 to 2026.
On the basis of distribution channel, the market is segmented into store-based retailers and non-store retailing. Store-based retailers are further sub-segmented into grocery retailers, supermarkets/hypermarkets, convenience stores and others. In 2018, store based retailers segment is dominated the Canada energy drinks market with 72.0% market share and is growing at the highest CAGR of 11.9% in the forecast period of 2019 to 2026.
Major Players: Canada Energy Drinks Market
Some of the prominent participants operating in this market are PepsiCo, Inc , Red Bull GmbH, T.C. Pharma, DOHLER, Rockstar, Inc., Amway, Britvic PLC., Frucor Suntory, D'ANGELO, HYPE ENERGY DRINKS, MUTALO GROUP, XYIENCE, INC., THE COCA-COLA COMPANY, AJE, Monster Energy Company, among others.
