ENERGY SUPPLEMENTS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Energy Supplements Market Size and Trends

The energy supplements market is estimated to be valued at USD 47.17 Bn in 2024 and is expected to reach USD 74.48 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031.

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The global energy supplements industry is poised for significant growth, driven by increasing health awareness and the need for energy among busy individuals. Key drivers include a rising interest in fitness and preventive healthcare, leading consumers to seek products that enhance stamina, and performance during workouts. Additionally, the growing availability of diverse products, such as energy drinks and gummy, caters to varying consumer preferences. However, the market faces challenges, including regulatory hurdles, and skepticism regarding the efficacy and safety of certain ingredients. Concerns about negative publicity and evolving consumer preferences may also restrain market growth.

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Insights, By Product Type - Energy drinks contributes the highest share of the market owing to convenience and popularity among consumers

In terms of product type, energy drinks segment is expected to contribute the highest market share of 41.1% in 2024, due to their convenient packaging and widespread popularity. The convenience of an energy drink makes it preferable to other supplement types that usually require preparation or multiple tablets. As long as the leading brands sustain product innovation and marketing investments, energy drinks seem poised to retain their dominant position in the industry.

Insights, By Sales Channel - Product visibility and one-stop shopping experience drives hypermarkets and supermarkets

In terms of sales channel, hypermarkets and supermarkets segment is expected to contribute the highest market share of 54.7% in 2024, owing to product visibility and one-stop shopping experience. When examining distribution channels for energy supplements, hypermarkets and supermarkets command the largest segment owing to advantages in product visibility and a one-stop shopping experience. The broad selection and high-traffic environments will likely sustain these channels as the primary sales outlets for the energy supplements industry in the foreseeable future.

Regional Insights

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Regional Analysis: Energy Supplements Market

Dominating Region: North America

North America is expected to dominate the energy supplements industry with a market share of 38.2% in 2024, due to a well-established industry presence and robust consumer demand. With a growing health-conscious population, key players in the region have capitalized on innovations to cater to specific consumer needs.

Fastest-Growing Region: Asia Pacific

Asia Pacific exhibits the fastest growth in energy supplements industry with a market share of 23.5% in 2024, driven by rising incomes, urbanization, and shifting lifestyle preferences in countries like China, India, and Southeast Asia. Young demographics and the expansion of e-commerce and retail chains are further propelling the market forward.

Energy Supplements Market Outlook for Key Countries

Continuous innovation and product diversification in U.S.

The U.S. energy supplements industry is significantly influenced by key innovators like GNC Holdings and Monster Beverage, which are at the forefront of developing herbal-based supplements and functional beverages. These companies focus on creating products that cater to health-conscious consumers seeking natural ingredients and enhanced performance, driving market growth through continuous innovation and product diversification.

Progressive regulations on nutrients in China

The China energy supplements industry is being transformed by domestic companies, such as Amway (China) Co., Ltd. which are innovating with locally-sourced ingredients. Alongside this, progressive regulations on nutrients and labelling are enhancing product transparency and safety, fostering consumer trust and driving market growth.

Rapidly enhancing distribution channels in India

Indian companies like Amway India and Herbalife are rapidly enhancing distribution channels and effectively marketing energy supplements to the country's expanding middle class. Their strategies focus on leveraging e-commerce and digital marketing, catering to health-conscious consumers seeking convenient and nutritious energy solutions.

Trends in wellness and nutrition in Japan

Japanese companies like Asahi Group Holdings are innovating in the energy supplements market by focusing on functional foods that conveniently deliver essential nutrients. Their products cater to health-conscious consumers seeking effective and easy-to-consume options, aligning with growing trends in wellness and nutrition.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Energy Supplements Market Players

• Established players focus heavily on R&D to drive innovation in the energy supplements industry. Industry leaders like GNC and Vitamin Shoppe invest over 10% of their annual revenue in developing new formulations and delivery systems. Their in-house R&D teams work closely with universities and nutrition labs on cutting-edge research.
• Mid-level players capitalize on collaborations to strengthen their market position. Companies partner with local supplement producers to share manufacturing capabilities and technology. For instance, Nature's Way collaborated with a Czech Republic-based brand supplements to set up joint production plants across Europe. These alliances help mid-tier brands access new international markets at lower costs.
• Small-scale players leverage niche specialization as a key strategy. They focus on specialized formulations targeting specific demographics like vegan athletes, diabetics, or the elderly. Companies like Plant Fuel spend on consumer research to identify gaps in the market and formulate customized supplements. Their laser-sharp focus helps gain foothold in specialized segments.

Emerging Startups in the Energy Supplements Market

• In terms of innovative technologies, startups like Anthropic are developing AI-powered smart supplements. Their supplements use AI and sensors to learn individual nutrition needs and release ingredients accordingly. Such customized solutions have the potential to disrupt the entire supplements industry.
• Several startups are focusing on sustainability with eco-friendly solutions. Enso Algae creates vegan, sugar-free, and gluten-free supplements using algae as the superfood. Their microalgae powders offer high nutrients with minimum land and water usage. Such innovative ideas will redefine ‘healthy and green’ supplements for conscious customers.
• New entrants also address niche segments not catered by large players. Stoked Bar targets adventure enthusiasts with functional bars for outdoor activities like hiking and cycling. They offer compact, nutrient-packed bars to fulfill the unique needs of active lifestyles.

Energy Supplements Industry News

• In October 2023, JoulesHealths , a health supplement company, announced that it had launched a new age energy drink, “ENERGY”. The product focuses on elevating wellness through nourishment.
• In March 2023, Nutrizoe, a nutritional products company, announced that it had launched Zoe Bars India’s first energy bar for women. Zoe Bars are custom-designed to provide instant energy while helping women to overcome cravings for desserts.
• In March 2023, Bagrrys India, a India-based breakfast cereals & health food brand in India, announced that it had launched “The Mighty Muesli Bars” new varieties of energy bars. These Muesli Bars are packed with multi-grains, nuts, fruits & honey with a punch of high fiber.

Key Takeaways from Analyst

The global energy supplements industry is expected to witness substantial growth over the forecast period driven by increasing health consciousness among consumers and busy lifestyles.

Stringent regulations surrounding these supplements may restrain the market growth. Manufacturers need to ensure their products meet all labelling and composition guidelines. Availability of low-cost substitutes like coffee and tea also poses a challenge.

North America energy supplements industry currently dominates due to the region's health-conscious population and innovative product offerings. However, Asia Pacific is likely to witness the fastest growth led by China, India, and other Southeast Asian countries where lifestyle changes and increasing health expenditure are driving sales.

Market Report Scope

Market Dynamics

Market Driver - Increasing health awareness among consumers

As health consciousness rises in today’s fast-paced world, energy supplements have gained widespread acceptance. They effectively address the demand for quick energy boosts amid busy lifestyles, long work hours, and inadequate nutrition. By delivering essential vitamins and nutrients in convenient forms, these supplements help professionals and parents sustain energy levels without added sugars or preservatives, ultimately promoting overall well-being and vitality.

Market Challenge - Product recalls due to mislabeling or false claims

The energy supplements market has encountered significant challenges due to product recalls stemming from mislabeling and false claims by some manufacturers. These recalls damage consumer confidence, leading to skepticism about product labels. The financial burden of recalls impacts sales and requires substantial effort for brands to rebuild their reputations, ultimately slowing innovation and market growth due to increased caution in product development.

Market Opportunity - Development of organic, herbal and plant-based supplements

The growing consumer preference for organic and natural products without artificial or chemical ingredients presents a significant opportunity for the energy supplements industry. Many customers are gravitating towards herbal and plant-based formulations for their perceived health benefits. Companies that develop and market supplements from natural ingredients, including locally sourced variants, will attract health-conscious consumers, especially those interested in traditional medicinal systems, enhancing market growth.

Market Segmentation

• By Product Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Energy Drinks
  • Gummies
  • Energy Bars
  • Capsules
  • Others
• By Sales Channel Insights (Revenue, USD Bn, 2019 - 2031)
• • Hypermarkets and Supermarkets
  • Specialty Stores
  • Online Sales Channel
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • Premier Nutrition Company, LLC
  • AdvaCare Pharma
  • Strava Healthcare Pvt Ltd
  • Herbalife International India Pvt Ltd
  • Fast&Up
  • Abbott
  • AriZona Beverages USA
  • Glanbia PLC
  • Amway India Enterprises Pvt. Ltd.
  • Nutrizoe
  • Bagrrys India
  • PROBAR, Inc.
  • Pepsi Energy Co.