China's energy drink market is projected to grow at a CAGR of 5.2% during the forecast period, 2022-2027.

In 2020, the impact of COVID-19 on China's energy drink market was positive. In the COVID-19 pandemic, fitness clubs and other sporting arenas were shut down in China. Nonetheless, the customers are sticking to workouts and employing various exercise regimes in the convenience of their homes, showing a continued need for energy drinks. At the same time, long and variable working hours have further driven Chinese consumers towards energy drinks. The Chinese energy drink companies in the market are Red Bull, Monster Beverage Corporation, Taisho Pharmaceutical Holding Company, Dali Food Group Co. Ltd., Rockstar Inc., Taisho Pharmaceutical Holding Co. LTD, Pepsico, and Coca-Cola.

Although energy drinks are not traditional Chinese drinks, they are a relatively new drink among youngsters. However, in recent years, imported energy drinks to China are rising, and the main consumption group is the younger generation, who find energy drinks to be some trend and fashion.

In recent years, imported energy drinks to China are growing, and the highest consumption group is the more youthful generation who find energy drinks as some fashion and trend. Energy drinks with lower sugar content and natural ingredients are set to boom and continue attracting the attention of a greater number of health and wellness concentric consumers. For example, brands containing natural ingredients extracted from products such as coffee beans are expected to propel the region.

Key Market Trends

Increasing Market Penetration of Global Brands

The Chinese energy drink market is highly competitive, and major players account for a significant market share. Major market players targeting leading brands acquire market leaders in more mature and sophisticated markets. The acquisitions of these brands enable diversification and give these players access to stable cash flows and further growth opportunities. Major players in the market are Red Bull, Monster, Burn, RockStar Inc., PepsiCo., etc.

In 2020, Red Bull was the best-selling energy drink brand in stores in China, accounting for around 52 percent of all energy drink sales. Local energy drink brand Eastroc Super Drink came in second with a 15.4 percent market share that year.

Consumers Inclination Toward Sugar-Free Beverages

According to the International Diabetes Federation, around 140.87 million people will have diabetes in China in 2021. Due to the high prevalence of diabetes in the region, consumers are becoming more aware of the importance of a healthy diet and an active lifestyle. Due to rising health concerns and increasing measures to prevent lifestyle diseases, consumers opt for low-calorie, low sugar, or sugar-free dietary patterns in foods and beverages. Consumers prefer natural sweeteners, such as stevia, in their beverages.

Moreover, changes in consumer preferences for reduced or no-sugar products directed the beverage manufacturers toward product innovation. These manufacturers are developing a range of novel products to meet the accelerating demand for such products. Consumers are actively trying to avoid consuming sugary drinks to prevent the harmful effects of excessive sugar intake. Moreover, to meet the demand for healthier alternatives in the beverage category, private-label companies are also entering the market, competing with the top brands.

Competitive Landscape

The Chinese energy drink market is fragmented, and major players account for a significant market share. The prominent players in the market are Red Bull, Monster, Burn, RockStar Inc., PepsiCo., etc. The emerging market players targeting leading brands are making strategic acquisitions of market leaders in more mature and sophisticated markets.

Energy drinks claim a major market share, especially among the young population in Asian countries. The use of natural ingredients in energy drinks and growth in new varieties and types of energy drinks are the primary drivers of growth in the market. In addition, energy drinks are increasingly being used as mixers for alcoholic beverages. This trend is more commonly observed among the younger population, in the age group of 18-34 years.​

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• 1 INTRODUCTION

  • 1.1 Study Assumptions and Market Definition

  • 1.2 Scope of the Study

• 2 RESEARCH METHODOLOGY

• 3 EXECUTIVE SUMMARY

• 4 MARKET DYNAMICS

  • 4.1 Market Drivers

  • 4.2 Market Restraints

  • 4.3 Porter's Five Forces Analysis

    • 4.3.1 Threat of New Entrants

    • 4.3.2 Bargaining Power of Buyers/Consumers

    • 4.3.3 Bargaining Power of Suppliers

    • 4.3.4 Threat of Substitute Products

    • 4.3.5 Intensity of Competitive Rivalry

• 5 MARKET SEGMENTATION

  • 5.1 By Distribution Channels

    • 5.1.1 Supermarkets/ Hypermarkets

    • 5.1.2 Pharmacies

    • 5.1.3 Health stores

    • 5.1.4 Convenience stores

    • 5.1.5 Internet retailing

    • 5.1.6 Others

• 6 COMPETITIVE LANDSCAPE

  • 6.1 Most Active Companies

  • 6.2 Most Adopted Strategies

  • 6.3 Market Share Analysis

  • 6.4 Company Profiles

    • 6.4.1 Red Bull

    • 6.4.2 Monster Energy Company

    • 6.4.3 Taisho Pharmaceutical California, Inc

    • 6.4.4 Daly Foods Group

    • 6.4.5 Hangzhou Wahaha Group Co.,Ltd

    • 6.4.6 Coca-Cola

    • 6.4.7 PepsiCo

    • 6.4.8 Southland Trade Company Ltd

    • 6.4.9 Otsuka Pharmaceutical

    • 6.4.10 Eastroc super drink

• 7 MARKET OPPORTUNITIES AND FUTURE TRENDS

• 8 IMPACT OF COVID-19 ON THE MARKET