CAFFEINE MARKET ANALYSIS

Market Challenges And Opportunities

Market Restraints

• Excessive consumption is problematic.

More consumption of caffeine causes side effects such as restlessness, insomnia, headaches, dizziness, dehydration, anxiety, etc. These side effects contributed to driving consumers to look for healthy alternatives that can replace caffeine. Some of the alternatives for caffeine are ginseng, pomegranate juice, maca, baobab, and reishi among others. The availability of such substitutes is expected to hamper the caffeine market growth.

Moreover, players operating in the food ingredients industry are focusing on developing products that can replace caffeine in food products, this is also expected to hamper the market growth of caffeine over the forecast period.

Market Opportunities

• Expanding interest for caffeinated drinks

Players operating in the caffeine market are focused on developing new ingredients using caffeine for end-use industries. This is expected to drive the market growth for caffeine over the forecast period. For instance, according to L'Oreal S.A.'s quarterly report released in April 2020, in the first quarter of 2020, skincare-focused brands such as Kiehl's, Lancôme, and Helena Rubinstein outperformed the company's other premium brands. Caffeine is mostly derived from cocoa beans in personal care products. It has already achieved cult status in the Indian D2C cosmetics business, selling over ten million items. The 'world's first club,' which introduced the world's first coffee bean-shaped swimming bar in late 2020 (patent pending in India), is no stranger to the business. Demand for cosmetic chemicals such as caffeine is expected to rise as a result of skincare companies focusing on personal hygiene and cleansing products.