The 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.
Guarana is a climbing plant native to the Amazon Rainforest region. Its seeds are used to produce a powder that is most commonly found in energy drinks as one of the key ingredients. Guarana seeds contain caffeine which acts as a stimulant providing a burst of energy. Due to the presence of caffeine, guarana is finding increasing applications in the production of energy drinks, sports nutrition, and dietary supplements.
The growing demand for energy drinks and supplements among health-conscious consumers is a major factor driving the growth of the guarana market. According to data, the global energy drinks market was valued at US$ 86.69 Bn in 2020 and is expected to showcase a CAGR of 7.3% during the forecast period. Consumers are constantly looking for natural alternatives to caffeinated beverages to boost energy levels without compromising health. This has accelerated the demand for guarana extract as a source of natural caffeine. Additionally, rising consumption of sports nutrition supplement products owing to increasing focus on physical fitness is also fueling the market growth. Sports nutrition supplements containing guarana are known to enhance physical performance and endurance during athletic activities.
The guarana market is dominantly segmented by application into food & beverages, cosmetics, and pharmaceutical. Among these, the food & beverages sub-segment dominates the market owing to the wide usage of guarana in energy drinks, soft drinks, dietary supplements, and functional foods. Guarana is widely used as a natural stimulant in energy drinks due to caffeine content which boost the growth of this sub-segment.
- Political: There are no strict regulations on usage of guarana in food and beverages industry which promotes the market growth. However, new regulations on caffeine content might hamper short term growth.
- Economic: Growth in disposable income and change in lifestyle resulted in increased demand for functional food and beverages which drives the guarana market growth.
- Social: Rising health consciousness among consumers encourage adoption of natural components like guarana which promotes market growth.
- Technological: Innovations in extraction technology help manufacturers to utilize guarana efficiently and develop wide range of products attracting more consumers.
The global guarana market is expected to witness high growth, exhibiting CAGR of 7.1% over the forecast period, due to increasing demand for functional beverages. The market size for 2023 is estimated to be US$ 5,062.1 Mn.
Regional analysis: Asia Pacific holds the largest share in the global guarana market owing to the increased consumption of energy drinks in countries like India, China and Japan. Rapid urbanization and changing consumer preferences drives the APAC guarana market.
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.