Guarana Market Is Estimated To Witness High Growth Owing To Increasing Applications in Energy Drinks And Growing Health Concerns
The Guarana Market is estimated to be valued at USD 16.67 Bn in 2024 at a CAGR of 5.3% over the forecast period (2024-2031). Guarana contains caffeine in naturally occurring stimulants like theine and guaranine which helps in providing energy and boosting metabolism. Furthermore, guarana is rich in antioxidants which are beneficial for overall health and well-being.
The growth of the guarana market is driven by increasing applications of guarana in energy drinks globally and growing awareness about the health benefits associated with guarana extracts. Guarana is a popular natural ingredient in energy drinks due to the presence of caffeine. Changing consumer preference towards natural energy boosters from plant-based sources instead of synthetic alternatives is favoring the demand for guarana extracts in energy drinks. Additionally, guarana has antioxidant and stimulant properties that helps in boosting metabolism and minimizing fatigue. This is encouraging functional food and dietary supplement manufacturers to introduce guarana-based products to cater to the increasing demand from health-conscious consumers. The diversifying application of guarana extracts across industries like food and beverage, pharmaceutical, and personal care is expected to support the growth of the guarana market over the forecast period.
Increasing demand for energy drinks is driving growth in the guarana market
One of the primary drivers of growth in the guarana market is the rising demand for energy drinks globally. Guarana is commonly used as a stimulant in energy drinks due to its high caffeine content. The global energy drink market has been growing steadily over the past decade, driven by increasing health consciousness and busy lifestyles that require an energy boost. Guarana extract provides a natural source of caffeine that enhances the energy-giving properties of these drinks without harsh side effects of synthetic stimulants. Many popular brands such as Red Bull, Monster, and Rockstar use guarana in their formulations to satisfy consumer demand for a caffeine kick. As consumption of energy drinks continues to rise across both developing and developed countries, it will propel the use of guarana extract in the industry
Stringent regulations on synthetic additives are increasing focus on natural energy sources like guarana
Another driver for the guarana market is the increasing regulations imposed on synthetic additives and stimulants used in the food and beverage industry. Several countries have either banned or placed strict restrictions on artificial ingredients like brominated vegetable oil (BVO) due to health concerns. This is compelling manufacturers to shift towards using natural sources of caffeine and stimulants. Guarana extract contains caffeine in natural form and provides benefits similar to synthetic caffeine but without any harmful byproducts. The clean-label trend is encouraging more companies to replace artificial additives with natural alternatives like guarana. The regulations on synthetic stimulants are expected to further drive the demand for guarana extract from the energy drinks and functional foods segment.
Production challenges and unstable supply are restraining the market growth
One of the key restraints hampering the guarana market's potential is unstable supply and limited production. Guarana berries are gathered from the wild in the Amazon regions of Brazil, making their availability unpredictable. Adverse climatic conditions and lack of commercial farming practices can disrupt the supply. Moreover, guarana has a long gestation period and is difficult to cultivate, posing challenges to scaling up production. The supply chain from forests to processing also lacks efficiency. This unstable supply makes it difficult for manufacturers to secure consistent quantities of guarana extract and incorporate it into their products. Unless large-scale cultivation and improved supply chain management methods are implemented, fluctuating production will continue restricting guarana market expansion.
High prices of guarana extract limit its adoption
Another notable restraint for the guarana market is the high price of guarana extract. Its cost is considerably greater than most synthetic stimulants and artificial caffeine sources utilized across different industries. This price factor deters many small- and mid-sized manufacturers from incorporating guarana extract into their products. While demand is growing significantly, especially for applications in energy drinks and functional foods, the premium prices make guarana extract less competitive against low-cost alternatives. Unless production volumes increase substantially through commercial farming initiatives, bring costs down, its widespread adoption across diverse consumer sectors may remain limited by the high input costs. Affordability is a major constraint that the guarana industry needs to address through yield optimization and supply chain efficiency.
Growing popularity of functional foods and supplements opens new opportunities
The expanding global functional food and dietary supplements industry presents significant growth opportunities for the guarana market. Along with other superfoods and botanical extracts, demand for guarana is surging from manufacturers of functional snacks, cereals, and supplements targeting the health-conscious demographic. In addition to providing a natural energy boost, guarana also has other beneficial properties like antioxidant capabilities. This widens the scope of applications across immunity support, weight management, and sports nutrition supplements. Emerging innovations pertaining to delivery formats like guarana-infused gummies and chews are also gaining traction. As preventive healthcare assumes more focus worldwide, the functional products industry will continue flourishing, driving higher incorporation of guarana extract over the coming years.
E-commerce boom expands the reach of guarana-based products
The rise of e-commerce platforms is opening new opportunities for guarana producers and exporters to reach niche consumer segments and geographies. While Brazil dominates guarana cultivation, e-retailing helps distributors promote guarana products to a wider international audience. Several brands focused on natural stimulants have successfully utilized online channels to promote guarana capsules and dietary supplements. The millennial preference for convenient digital shopping when it comes to health and wellness products benefits the guarana market. Moreover, e-commerce reduces geographical barriers, helping connect consumers directly with producers. This expanded outreach improves access to remotely sourced ingredients like guarana. The e-commerce boom will continue powering innovative product launches and supporting the guarana market growth in the coming years.
Link - https://www.coherentmarketinsights.com/market-insight/guarana-market-2149
Key Developments
- In May 2021, CreamyFeel, a product developed by Duas Rodas, was introduced as a innovative solution that bridges the gap between health and indulgence. This clear formulation enhances the creamy flavors and provides a satisfying mouthfeel, effectively compensating for the reduced fat content in dairy products and plant-based beverages. CreamyFeel allows manufacturers to create dairy and non-dairy items that deliver a rich, creamy experience without compromising on healthier nutritional profiles.
- In February 2021, ingredients from the multinational company Duas Rodas were recognized as among the most innovative in Brazil for the fourth consecutive year, according to the Food Ingredients Innovation Awards. The goal of this award is to encourage innovation and acknowledge the development of consumer-friendly products within the industry. This achievement highlights Duas Rodas' continued commitment to creating innovative solutions that cater to evolving consumer preferences and market demands.
- In February 2021, Duas Rodas, a leading Brazilian company specializing in the production of flavors and ingredients for the food and beverage industries, launched the Plant Based Solutions technical platform. This innovative platform enables vegetable proteins to mimic the flavor, juiciness, and texture of meat, providing a more authentic experience for consumers seeking plant-based alternatives. By introducing this groundbreaking technology, Duas Rodas demonstrates its commitment to supporting the growing demand for meat substitutes while ensuring that these products deliver on taste and mouthfeel.
- In 2021, Guarana, a popular Brazilian beverage brand, launched a new product featuring the signature of Nikola Jokic, the renowned professional basketball player. This collaboration between Guarana and Nikola Jokic, a Serbian NBA star, likely aimed to leverage Jokic's popularity and appeal to attract consumers and create a unique, branded product offering.
Key Players
Vitaspice Brasil Ltda, Prover Brasil for Export Ltda, Herboflora Produtos Naturais Ltda, Ambev, Duas Rodas Industrial Ltd, A R De Sousa Ribeiro & Cia Ltd, Natural Amazon Herbs Producao De Extratos Ltda, Iris Trade Inc., The Green Labs LLC, Nutra Green Biotechnology Co., Ltd., NutriCargo, and Sylvestre Ingredientes Naturais
