by Caffeine is a central nervous system stimulant found in various drinks, foods and supplements. It acts as a psychoactive substance that improves focus, alertness and increases energy levels. Caffeine is extensively used as an ingredient in energy drinks to provide a stimulating boost. The growing popularity of energy drinks among young consumers due to hectic lifestyles and busy schedules has been the major driver for the global caffeine market. Energy drinks claim to reduce fatigue, improve physical performance and mental alertness. The rising demand for functional drinks providing refreshment along with caffeine boost is fueling the growth of the global market.
The global caffeine market is estimated to be valued at US$ 18.12 Mn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the global caffeine market is the introduction of innovative product formulations. Manufacturers are focusing on developing novel energy drinks with additional health benefits. For instance, some energy drinks are enriched with antioxidants, vitamins, amino acids etc. to provide multi-dimensional wellness. Manufacturers are also introducing caffeine-infused beverages in different flavors to appeal diverse consumer tastes. Another major trend is the increasing demand for caffeine from the pharmaceutical industry. Caffeine is widely used in medications to treat headache, fatigue and improve concentration. Rising incidence of migraine and stress-related disorders have boosted the consumption of caffeine tablets and supplements. Growing health consciousness among consumers have also fueled the demand for caffeine from the nutraceutical sector for use in weight loss supplements and pre-workout formulas. The emerging trend of caffeine skin care products is another notable development, where caffeine is used as an active ingredient in serums and creams for its firming and brightening properties.
Porter’s Analysis
Threat of new entrants: The caffeine market has limited threat from new entrants as it requires significant capital investments and established distribution channels. Bargaining power of buyers: The bargaining power of buyers is moderate as there are a number of established manufacturers providing caffeine. Bargaining power of suppliers: A few companies dominate the supply of raw materials for caffeine production giving them significant bargaining power over manufacturers. Threat of new substitutes: New substitutes such as herbal energy drinks pose low threat currently due to customer preferences for caffeine. Competitive rivalry: The caffeine market is dominated by large players and witnessing high competition.
Key Takeaways
The global caffeine market size is expected to witness high growth. Regional analysis comprises Regional analysis related content:Asia Pacific region currently holds the major share in the caffeine market and is expected to witness fastest growth during the forecast period owing to increasing demand for energy drinks and supplements in the developing nations such as India and China.
Key players related content comprises: Key players operating in the caffeine market are Altana, Chase Corp., CHT Ltd, Dow, Dymax, HK Wentworth Ltd, H.B. Fuller Company, Henkel AG & Co. KGaA, ITW, Kisco Ltd, MG Chemicals, Panacol-Elosol GmbH, Shin-Etsu Chemical Co. Ltd, and Momentive. These players are focusing on new product launches and expansion strategies to gain higher market share.
For instance, in 2021, Shenzhen H&C Biotechnology Co.,Ltd launched caffeine anhydrous powder to capitalize on the growing caffeine ingredient demand in North America and Europe.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
