July 19, 2024
Guarana Market

Guarana Market is estimated to Witness High Growth Owing To Rising Demand for Energy Drinks

The guarana market is estimated to be valued at US$ 6218.69 Mn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Guarana is a climbing shrub native to the Amazon Rainforest region of South America. Guarana seeds contains a higher concentration of caffeine than coffee beans, and are commonly used in energy drinks and supplements. Guarana has stimulant properties and provides sustainable energy through its caffeine content. It also contains antioxidants that helps protect cells from damage.

Market key trends:

The global demand for energy drinks is growing rapidly owing to busy lifestyle and changing food habits. Guarana acts as a major functional ingredient in majority of energy drinks as it provide instant energy boost. Rising health consciousness is also driving consumers towards natural energy sources like guarana instead of synthetic caffeine. With increasing demand from energy drinks industry, guarana market is expected to witness significant growth over the forecast period. Manufacturers are also utilizing guarana in various supplement formulations owing to its nutritional profile and energy enhancing properties. This growing application in sports nutrition and supplements will further support the market expansion through 2030.

Porter’s Analysis:

  • Threat of new entrants: The guarana market has moderate threat of new entrants due to high capital requirements and established presence of existing players. However, growing demand can attract new players.
  • Bargaining power of buyers: Buyers have moderate bargaining power given the presence of several guarana producers. However, shifting preferences towards natural products increase their power.
  • Bargaining power of suppliers: Guarana farmers have low bargaining power due to oversupply in Brazil that accounts for over 90% of global production. Established players source directly from producers.
  • Threat of new substitutes: Threat from substitutes like caffeine, kola nut extract etc. is low as guarana offers unique antioxidant properties and caffeine content.
  • Competitive rivalry: High owing to large number of players and product differentiation scope.

SWOT Analysis:

  • Strength: Guarana seeds contain caffeine levels higher than coffee beans and antioxidant properties. Growing inclination toward herbal products and energy drinks boost demand.
  • Weakness: Dependence on weather conditions for cultivation. Supply uncertainties arising from climate change and sustainability issues.
  • Opportunity: Increasing scope in functional foods, supplements and pharmaceutical industries due to multiple nutritional and medicinal uses. Emerging demand in Asia Pacific and Middle East Africa regions.
  • Threats: Stringent regulations in certain regions regarding use of caffeine. Competition from substitutes.

Key Takeaways:

The Global Guarana Market Growth is expected to witness high, exhibiting CAGR of 7.1% over the forecast period, due to increasing demand for plant-based caffeine alternatives and natural energy drinks. Brazil dominates the market with over 90% share owing to suitable agro-climatic conditions for guarana cultivation. However, Argentina and Bolivia are emerging as fastest growing regional markets.

Regional analysis: Asia Pacific region is witnessing fastest growth for guarana market owing to rising health consciousness, growing penetration of energy drinks and increasing per capita expenditure. Countries like China, India, Japan and South Korea offer lucrative opportunities. North America and Europe are established traditional markets while demand picks up in Middle East and Africa region.

Key players operating in the guarana market are 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, and Nutra Green Biotechnology Co., Ltd. Players are focused on new product launches and strengthening distribution networks in emerging regions.

*Note:
1.  Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it