UNITED STATES SPORTS DRINK MARKET – GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022 – 2027)
The US Sports Drink Market is segmented by Packaging ( PET Bottles and Cans) and Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Retail Stores, and Other Distribution Channels). The report offers market size and forecast in value terms in USD million for all the above segments.
Market Overview :
The US sports drink market is projected to witness a CAGR of 4.54% during the forecast period (2022-2027).
In the United States, gyms, sports clubs, and fitness studios were the first businesses to undergo forced shutdowns during the COVID-19 pandemic, resulting in minimal demand for sports drinks in the country, thus limiting the sales of sports drinks in the US market.
Sports drinks are gaining popularity in the United States, mainly among athletes and individuals involved in vigorous physical activities. Rising demand for various beverages due to increasing health awareness and growing demand from the millennials are identified as the major drivers for the growth of the sports drink market.
Beverage companies in the country are concentrating on increasing the demand for their sports drinks with the help of various endorsements through popular athletes and celebrities and promotional campaigns in fests and events, among others. Hence, this is boosting the market growth in the country.
Scope of the Report
Sports drinks are a kind of functional drink that are specially manufactured for the consumers that demand instant energy before, during, and especially after training or competition. Consequently, these are generally supplemented with electrolytes to provide instant energy to the consumers. The US sports drink market is segmented by packaging and distribution channel. By packaging, the market is segmented into PET bottles and cans. By distribution channel, the market is segmented into supermarkets/hypermarkets, convenience stores, online retail stores, and other distribution channels. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
Key Market Trends
Increasing Inclination Toward Easy-to-Use PET Bottles and Other Sustainable Packaged Products
The demand for PET bottles is driven due to their ability to be opened, used, sealed, and reused when required, before, after, or during intense physical activity. Moreover, there are numerous benefits for the manufacturers that widely insist they use PET bottles to offer their products, owing to their transparency, high-pressure resistance, stability, and lightweight. In lieu of the growing concerns about using plastic, manufacturers have introduced their products in reusable, BPA-free bottles.
The major players in the market, such as PepsiCo Inc. and The Coca-Cola Company, are trying to reduce their carbon footprint by adhering to sustainable packaging methods. Although this concept is contested, these players prefer using PET bottles to aluminum cans.
Growing Athleisure and Health Wellness Trends Catalyzed by Surge in Government Initiatives
In line with the athleisure trend, consumers are increasingly seeking various types of sports drinks and beverages to fulfill their nutrition and water requirement.
Additionally, a continued shift toward more active lifestyles drives the demand for leisure activities and sports, such as soccer and football, which, in turn, will propel the demand for sports drinks in the country.
The primary drivers behind the proliferation of athleisure trends, such as health and wellness, are expected to remain popular in the forecast period. Also, the increasing active social media users create attention toward various products among consumers in the country.
The increase in government initiatives and the presence of various organizations in The United States, which are meant to improve sports participation, played a crucial role in driving the market over the last few years. For instance, the United States Department of health and human services released the national youth sports strategy.
This is the first federal strategy to increase youth participation in sports and physical activity initiatives over the next five years. It is also the first federal roadmap that outlines steps that the country can take to ensure that all youth have the opportunity motivation, and access to play sports, regardless of their race, ethnicity, sex, ability, or ZIP code.
The US sports drink market is a highly competitive market as the majority of the share is held by global players, including PepsiCo Inc., The Coca-Cola company, and Abbott. As a part of strategic expansion, key players are adopting an omnichannel distribution strategy, where they tie up with various online retailers, i.e., third parties like Amazon.
This, in turn, broadens their geographical presence and customer base. The companies have been introducing new and innovative products, including naturally derived ingredients and additives, to make their product unique from the existing products.