Guarana is a climbing plant native to the Amazon region whose berries are used to make medicines, soft drinks and energy supplements. Guarana’s caffeine content is roughly double that of coffee beans, giving it stimulant properties which boost energy levels. The extract from guarana seeds contain caffeine that increases alertness and stimulates the central nervous system. Guarana also contains theobromine and theophylline that enhances mental clarity and mood. Its extracts are increasingly being used in sports nutrition supplements and energy drinks due to sustained release of energy.
The global Guarana Market is estimated to be valued at US$ 5,062.1 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 key trends:
The increasing demand for guarana from food and beverage industry is a major trend driving the growth of guarana market. Guarana has high caffeine content and is increasingly used in production of various energy drinks and sports beverages. Many energy drink brands use guarana extracts to power up their beverages. Guarana’s long lasting energy releasing ability compared to coffee makes it suitable for sports and endurance applications. Owing to rising health consciousness, many consumers prefer energy drinks with natural stimulants like guarana over those with artificial sources. This growing shift towards natural active ingredients in supplements and drinks will augment the consumption of guarana extracts in coming years.
SWOT Analysis
- Strength: Guarana contains caffeine which improves energy and mental alertness. Its active compounds stimulates the central nervous system with few side effects as compared to coffee.
- Weakness: High consumption of guarana can cause insomnia, anxiety, restlessness and increased heart rate in sensitive individuals. There is lack of clinical research data to support many of guarana’s proposed health benefits.
- Opportunity: Growing popularity of energy drinks and functional beverages provides an opportunity to incorporate guarana extracts. Increasing health consciousness among people for herbal products without side effects of caffeine boosts the demand.
- Threats: Stringent regulations around use of stimulants can hamper the growth. Adverse publicity regarding health effects with high intake poses a threat.
Key Takeaways
The global guarana market is expected to witness high growth.
Regional analysis: Latin America dominates the global guarana market currently due to large cultivation in Brazil. The country accounts for over 80% of the global production making it the fastest growing and dominating 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. Increasing consumption of functional beverages integrating guarana extracts is driving these key players to expand their production capacities and geographic reach.
