Africa and the Middle East’s energy drinks market is expected to register a healthy compound annual growth rate (CAGR) of 10.5% between 2019 and 2026, a new report from international consultancy, HTF Market Intelligence has found.
The compound annual growth rate is a useful measure of growth over multiple time periods.
HTF recently released a new research report titled ‘Middle East and Africa Energy Drinks Market Companies Profiles, Size, Share, Growth, Trends and Forecast to 2026.’ The study covers key regions that include North America, South America, Asia, Europe, Africa and the Middle East.
Based on data from historic years, including 2017, players such as The Coca-Cola Company, AJE and Monster Energy, among others stand to benefit from a growing demand for energy drinks in the aforementioned regions.
However, a similar report from consultancy Mordor Intelligence, released in December, 2017 projected that Africa’s energy drink market is projected to grow at a CAGR of 2.8% in the forecast period between 2018 and 2023.
While the two reports are seemingly varied, they agree that the sector is set for growth.
“Rising demand for convenience beverages and changing lifestyle in Africa are the major drivers for the growth of energy drinks. The middle-class market is expanding and local manufacturers are more focused on building their own community to bring growth in the market and the country,” Mordor Intelligence said in its report.
However, allegations on health hazards and requirement of proper labeling on the packaging are restraining the market.
Mordor believes that certain opportunities that drive the market are innovations in the communities by entrepreneurs and innovations to address the health and safety concerns.
Energy drinks with caffeine hold the major market share in Africa. The packaging of energy drinks also play a vital role in the market and from the past few years, cans have been the major market share holder.
South Africa has emerged as the major growing market for the local as well as the international companies like Mofaya Energy Drinks, Red Bull, Coca-Cola and Monster Beverage Corporation. Market analysts believe that African countries will gradually continue to embrace energy drinks as the industry continues to grow.