Why have caffeinated beverages become a major industry?

Posted December 30, 2019 by kusum21

The Global Caffeinated Beverage Market is expected to reach $310.5 billion by 2025, growing at a CAGR of 6.8%.

A caffeinated beverage is a drink containing caffeine, a stimulant that is legal and common in most developed countries. Coffee and tea, that in one form or another (usually served hot but sometimes iced) appear in most world cultures, are the most popular naturally caffeinated beverages. As a part of their production process, many beverages are heavily caffeinated. These include some soft drinks (mainly cola drinks), as well as energy drinks intended as a stimulant, and perpetuating activity at times when the user may normally be asleep.

The use of caffeinated drinks is often meant for the physical and mental effects of caffeine in whole or in part. For example, the consumption of tea or coffee with breakfast in many Westernized cultures to 'wake up' or the intentional intake of energy drinks by night-time students, or revelers trying to maintain a vigilant behavior during social recreation. If ingested in excessive amounts, however, caffeine can cause physical dependence. When individuals feel headaches, exhaustion, and muscle pain 24 hours after their last energy drink, the need for caffeine can be detected.

Many widely sold drinks contain guarana, a South American berry that contains about twice caffeine as much as coffee beans. Most caffeinated beverages also have decaffeinated equivalents for those who like the taste but want to limit their intake of caffeine due to their physical effects or due to the drug's religious or health beliefs and their results. Several alcoholic beverage companies have started manufacturing caffeinated alcoholic beverages in recent years. Much controversy has been met with the production of such beverages.

Energizing Effects of Caffeine

Caffeine is usually used to increase concentration and alertness because of its effects on the central nervous system, according to research published in Advances in Nutrition in January 2015. In medications, caffeine can also be used to treat headaches, asthma, and pain relief. This study focused on the use of caffeine in children and adolescents from food and beverages. The study concluded that a growing trend among adolescents and youth in caffeine-containing energy drinks (CCEDs) along with soda, coffee and tea led to an increase in the total consumption of caffeine.

Caffeine Considerations

Although moderate caffeine is generally safe for most healthy adults, it can have adverse side effects to drink too much caffeine. Since caffeinated drinks such as colas, coffees, and teas draw water out of the body as a diuretic, such drinks contain unnecessary caffeine that may contribute to dehydration.
For some populations potentially vulnerable to the negative effects of caffeine consumption, caffeine consumption could be dangerous, including pregnant and lactating women, infants, teenagers, young adults, and those with underlying heart conditions or other health conditions, such as mental illness. Excess caffeine can contribute to cardiovascular dysfunction, sleep, blood pressure changes and/or numbness.

• Unique advertising campaigns by the key players

Innovative marketing and branding campaigns by energy drink manufacturers are appealing to various age groups. Millennials are the major consumers of RTD tea and coffee. To enhance the sales of RTD tea and coffee, market players are working on affiliation strategies with various RTD tea and coffee manufacturers to launch new products. The new products offered are not only ready to drink but also carry the basic underlying taste of tea and coffee. Tata Global Beverages (TGBL) launched a marketing campaign to launch its Tata Coffee Grand, a new instant coffee. The launch of ‘Grand’ is in a competitive environment.

• Increased consumption of packaged soft drinks

Traditional and home-made drinks have been popular for a long while. However, from the past two years, the demand for non-carbonated packaged beverages is gaining immense popularity, with a year-on-year increase. Consequently, various factors, such as increased disposable incomes and health awareness, lead to increased demand for non-carbonated drinks. This growth encourages industry players to focus more on health and energy drinks, driving the market for energy drinks. Consumers have increasingly opted in recent years for naturally safe, packaged foods and beverages associated with organic, fortified/functional, or better-for-you products, as they are perceived to provide the essential natural nourishment.

• Rising awareness about the health benefits of caffeine drinks

Consumption of caffeine is associated with a number of health benefits. This protects the liver because coffee can reduce the risk of liver damage (cirrhosis) by up to 84%. It can delay the disease progression, improve the response to treatment, and reduce the risk of premature death. Consumption of caffeine also encourages longevity. Drinking coffee can reduce the risk of premature death by as much as 30% for women and diabetics in particular. Around 2-4 cups of coffee per day can reduce the risk of liver cancer by up to 64% and the risk of colorectal cancer by up to 38%. Drinking 4 or more cups of coffee per day can reduce the risk of skin cancer by 20%.

To conclude

In recent years, energy drinks have grown into a billion-dollar industry, as customers from all walks of life are searching for ways to boost their mental performance. Unfortunately, there is not a very good reputation for this industry.
With a lack of knowledge and awareness among participants, the prevalence of caffeinated beverage and energy drink consumption is high. Caffeine is the psychoactive substance that is most commonly used and easily available across all countries. Increased use of caffeinated beverages and their products over the past decade has raised health concerns worldwide, especially among young and adolescent populations. With the introduction of red bull energy drink in 1997, the trend of energy drink became popular.
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Tags Caffeinated Beverage Market Size , KBV Research , Caffeinated Beverage Market , Caffeinated Beverage
Last Updated December 30, 2019