Market Size of north america sugar free energy drinks Industry
| Icons | Lable | Value |
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Study Period | 2018 - 2030 |
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Market Size (2024) | USD 5.07 Billion |
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Market Size (2030) | USD 6.35 Billion |
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Largest Share by Distribution Channel | Off-trade |
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CAGR (2024 - 2030) | 3.82 % |
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Largest Share by Country | United States |
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Market Concentration | High |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
North America Sugar Free Energy Drinks Market Analysis
The North America Sugar Free Energy Drinks Market size is estimated at 5.07 billion USD in 2024, and is expected to reach 6.35 billion USD by 2030, growing at a CAGR of 3.82% during the forecast period (2024-2030).
5.07 Billion
Market Size in 2024 (USD)
6.35 Billion
Market Size in 2030 (USD)
3.31 %
CAGR (2018-2023)
3.82 %
CAGR (2024-2030)
Leading Market Player
22.91 %
market share, Red Bull GmbH, 2022
Unique product offerings with innovative flavor profiles and its' highly ingenious “buzz-marketing” strategy by the company made redbull major company in the market
Largest Segment by Packaging Type
61.55 %
value share, Metal Can, 2023
The high recyclable aluminum rates and government intervention towards the use of ecological packaging types have contributed to the rising demand for metal cans.
Largest Segment by Country
90.16 %
value share, United States, 2023
Growing cases of diabetes and other health conditions caused by excessive consumption of sugars are leading consumers in United States to look for alternative options.
Fastest-growing segment by Packaging Type
8.96 %
Projected CAGR, Glass Bottles, 2024-2030
Sustainability efforts happening, such as refillable glass bottle programs, and reduced environmental impact initiatives is anticipated to promote the use of Glass bottles.
Fastest-growing segment by Country
6.49 %
Projected CAGR, Canada, 2024-2030
Increasing offerings of energy drinks mostly in local cafes and pubs in these countries with growing preference for sugar-free products is leading the segmental growth.
Diverse flavor options and growing popularity of low-calorie energy drinks drives growth
- In 2023, North American distribution channels experienced a significant growth of 20.52% from 2020. This surge can be attributed to the rising availability of a diverse range of sugar-free energy drinks featuring flavors like blue slush, berry pop, and cherry slush. Retailers have responded by offering an extensive selection of low-calorie energy drink brands. Notably, consumer preferences in the region lean toward brands like V Energy, Power Horse, C4 Energy, and NOCCO, with respective market shares of 28%, 19%, 18%, and 17% as of 2022.
- Supermarkets and hypermarkets dominate the North American market, accounting for a significant share. In the off-trade retailing segment, these establishments command a 44.9% market share by value. Prominent players in this space include Walmart, Target, Kroger, Amazon, Costco Wholesale Corporation, Albertsons Cos., Ahold Delhaize USA, and Publix Super Markets Inc. These retailers have responded to the demand by offering an extensive range of sugar-free energy drinks. As of 2023, the price range for low-calorie and low-energy drinks falls between USD 2.20 and USD 3.10.
- The online channel is poised to be the fastest-growing distribution avenue, driven by the convenience it offers to modern consumers. In 2022, approximately 22.2% of Canadians, including those seeking low-calorie energy drinks, regularly purchased groceries online. Sales of sugar-free energy drinks through online platforms witnessed an impressive growth rate of 38.56% from 2018 to 2023. Amazon, Walmart, Target, and Walgreens are key players in this online space. These platforms entice buyers with bulk purchase discounts, seasonal offers, free deliveries, and coupon codes.
Understand The Key Trends Shaping This Market
Rising demand for sports activities has shifted the consumer's focus toward sugar-free or low-calorie energy drinks in North America
- Between 2018 and 2022, the energy drink market witnessed a surge in popularity, primarily driven by the 18-31 age group. These beverages, known for their potential to enhance alertness and concentration, owe their efficacy to caffeine, their primary ingredient. In 2023, a staggering 85% of Americans consumed at least one caffeinated beverage, highlighting the nation's affinity for these energy-boosting drinks.
- Within the North American market, the United States emerged as the dominant player in the sugar-free and low-calorie energy drink segment in 2023. These drinks, favored by fitness enthusiasts, not only serve as energizers but also aid in carbohydrate-to-glucose conversion. In 2023, nearly half of all Americans, 49.9%, hit the gym at least twice a week, underscoring the nation's fitness consciousness.
- Canada's sugar-free and low-calorie energy drink market outpaced its North American counterparts, boasting a robust CAGR of 6.34% from 2017 to 2023. This growth was fueled by a rising awareness of the benefits of healthier beverage choices. In 2022, a notable 18% of Canadians already preferred unsweetened beverages, signaling a shift away from traditional options.
- During the forecast period of 2024-2027, the North American energy drink market is projected to grow by 12.07% in value. This growth will be primarily driven by a health-conscious population. Retailers, on the other hand, are expected to focus on product development as their go-to strategy to expand their consumer base in the region.
North America Sugar Free Energy Drinks Industry Segmentation
Glass Bottles, Metal Can, PET Bottles are covered as segments by Packaging Type. Off-trade, On-trade are covered as segments by Distribution Channel. Canada, Mexico, United States are covered as segments by Country.
- In 2023, North American distribution channels experienced a significant growth of 20.52% from 2020. This surge can be attributed to the rising availability of a diverse range of sugar-free energy drinks featuring flavors like blue slush, berry pop, and cherry slush. Retailers have responded by offering an extensive selection of low-calorie energy drink brands. Notably, consumer preferences in the region lean toward brands like V Energy, Power Horse, C4 Energy, and NOCCO, with respective market shares of 28%, 19%, 18%, and 17% as of 2022.
- Supermarkets and hypermarkets dominate the North American market, accounting for a significant share. In the off-trade retailing segment, these establishments command a 44.9% market share by value. Prominent players in this space include Walmart, Target, Kroger, Amazon, Costco Wholesale Corporation, Albertsons Cos., Ahold Delhaize USA, and Publix Super Markets Inc. These retailers have responded to the demand by offering an extensive range of sugar-free energy drinks. As of 2023, the price range for low-calorie and low-energy drinks falls between USD 2.20 and USD 3.10.
- The online channel is poised to be the fastest-growing distribution avenue, driven by the convenience it offers to modern consumers. In 2022, approximately 22.2% of Canadians, including those seeking low-calorie energy drinks, regularly purchased groceries online. Sales of sugar-free energy drinks through online platforms witnessed an impressive growth rate of 38.56% from 2018 to 2023. Amazon, Walmart, Target, and Walgreens are key players in this online space. These platforms entice buyers with bulk purchase discounts, seasonal offers, free deliveries, and coupon codes.
| Packaging Type | |
| Glass Bottles | |
| Metal Can | |
| PET Bottles |
| Distribution Channel | ||||||
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| On-trade |
| Country | |
| Canada | |
| Mexico | |
| United States | |
| Rest of North America |
Need A Different Region Or Segment?
North America Sugar Free Energy Drinks Market Size Summary
The North America Sugar Free Energy Drinks Market is experiencing a notable expansion, driven by a growing consumer preference for healthier beverage options. This market is characterized by a diverse range of sugar-free energy drinks, which have gained popularity due to their appealing flavors and low-calorie content. Supermarkets and hypermarkets dominate the distribution channels, with significant contributions from online platforms, which are rapidly gaining traction due to their convenience. The market is primarily fueled by the demand from health-conscious consumers, particularly those in the fitness community, who favor these drinks for their energizing and performance-enhancing benefits. The United States leads the market, with Canada also showing robust growth, reflecting a broader shift towards unsweetened and low-calorie beverages.
The market landscape is fairly consolidated, with major players like Monster Beverage Corporation, PepsiCo, and Red Bull GmbH holding substantial market shares. These companies are actively innovating and expanding their product offerings to cater to the increasing demand for sugar-free alternatives. The market's growth is further supported by the rising awareness of the health implications of high sugar intake, prompting consumers to seek out low-calorie options. As the market continues to evolve, retailers are focusing on product development and strategic partnerships to enhance their offerings and attract a broader consumer base. The price sensitivity of consumers, especially during economic fluctuations, also plays a crucial role in shaping market dynamics, with budget-friendly options being highly sought after.
North America Sugar Free Energy Drinks Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
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1.1 Packaging Type
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1.1.1 Glass Bottles
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1.1.2 Metal Can
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1.1.3 PET Bottles
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1.2 Distribution Channel
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1.2.1 Off-trade
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1.2.1.1 Convenience Stores
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1.2.1.2 Online Retail
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1.2.1.3 Supermarket/Hypermarket
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1.2.1.4 Others
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1.2.2 On-trade
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1.3 Country
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1.3.1 Canada
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1.3.2 Mexico
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1.3.3 United States
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1.3.4 Rest of North America
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North America Sugar Free Energy Drinks Market Size FAQs
How big is the North America Sugar Free Energy Drinks Market?
The North America Sugar Free Energy Drinks Market size is expected to reach USD 5.07 billion in 2024 and grow at a CAGR of 3.82% to reach USD 6.35 billion by 2030.
What is the current North America Sugar Free Energy Drinks Market size?
In 2024, the North America Sugar Free Energy Drinks Market size is expected to reach USD 5.07 billion.
