Caffeine is a stimulant compound found in coffee, tea, soft drinks, energy drinks and pharmaceuticals. It helps in improving alertness and concentration. The increasing demand for energy drinks among consumers due to busy lifestyles is one of the major factors driving the growth of the caffeine market.
The global caffeine market is estimated to be valued at US$ 18.12 Bn 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:
The increasing demand for energy drinks is one of the major factors driving the growth of the caffeine market. The busy lifestyles and hectic schedules have increased the demand for energy drinks among consumers. Caffeine acts as the primary ingredient in most energy drinks due to its stimulant properties. It helps in improving alertness and concentration by antagonizing adenosine receptors in the brain. According to a report by Fortune Business Insights, the global energy drinks market was valued at US$ 61.05 billion in 2020 and is projected to reach US$ 99.51 billion by 2028, growing at a CAGR of 6.8% during the forecast period. The demand for caffeine-based energy drinks is expected to continue growing at a rapid pace propelling the growth of the caffeine market over the forecast period.
SWOT Analysis
Strength: Caffeine is the most widely consumed psychoactive substance in the world. There is widespread awareness and consumption of caffeinated beverages.
Weakness: Addiction and dependence on caffeine can become problematic for some individuals. High doses of caffeine can cause unpleasant side effects such as anxiety, insomnia, and irritability.
Opportunity: Emerging markets in Asia and Africa offer significant opportunities for growth. Innovative delivery formats such as energy drinks, pills, gum, and shots continue to expand the applications for caffeine.
Threats: Increased regulation of caffeine content in foods and beverages is possible in some jurisdictions. Growing consumer preference for herbal alternatives to caffeine poses a threat.
Key Takeaways
The global caffeine market demand is expected to witness high growth. The market size for 2023 is US$ 18.12 Mn and projected to expand at a CAGR of 6.0% until 2030.
North America currently dominates the global caffeine market owing to high consumption of beverages and food products containing caffeine.
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
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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