by The global Caffeine Market is estimated to be valued at US$ 18.12 Mn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Caffeine is a natural stimulant found in plants like coffee beans, tea leaves, guarana berries, and cacao pods. It is also popularly used as an additive in various products ranging from drinks, supplements, confectioneries, and medications. Caffeine works as a central nervous system (CNS) stimulant that temporarily wards off drowsiness and restores alertness. It aids in mental concentration and enhances physical performance when consumed in moderate amounts. The wide acceptance of caffeine as a safe and legal stimulant has led to its growth and prominence across various consumer products globally.
Market key trends:
One of the key trends driving the caffeine market is the rising popularity of energy drinks, especially among younger consumers. Energy drinks blend caffeine with vitamins, herbal stimulants, sugars, and other substances to provide an energy boost. A 2018 study revealed energy drinks to be the most popular drink category among teens in the U.S. Growing health consciousness is also shifting consumer preference towards caffeine supplements and tablets to maintain consistency in energy levels instead of sugary or carbonated energy drinks. Expanding functional food and beverage sectors utilizing caffeine for its stimulant properties also augur well for the market growth. However, over-consumption of caffeine can have health risks like insomnia, anxiety, irregular heartbeat and thus moderation is recommended.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low as caffeine market is dominated by few established players with high capital investment required to enter in this market.
Bargaining power of buyers: Buyers have high bargaining power in this market due to availability of substitutes. They can easily switch between caffeine products from different brands.
Bargaining power of suppliers: Suppliers have moderate bargaining power in this market as there are multiple suppliers for raw materials required for caffeine.
Threat of new substitutes: Threat from substitutes is high as alternatives like guarana and yerba mate are gaining popularity. Natural caffeine alternatives pose threat to synthetic caffeine.
Competitive rivalry: Competition is high among established players to gain market share and maintain leadership position in caffeine market.
Key Takeaways
The Global Caffeine Market Size is expected to witness high growth, exhibiting CAGR of 6.7% over the forecast period 2023 to 2030, due to increasing consumption of energy drinks and functional beverages.
Regional analysis: North America dominates the global caffeine market and is expected to continue its dominance over the forecast period. Growing demand for caffeinated drinks among health conscious consumers in the United States is driving the North America caffeine market. Asia Pacific caffeine market is expected to exhibit fastest growth over the forecast period, led by countries like India and China. Increasing urbanization and changing lifestyle in developing countries is propelling the demand for caffeinated beverages in Asia Pacific region.
Key players: Key players operating in the caffeine market are BASF SE, Spectrum Chemical Manufacturing Corp., Kudos Chemie Limited, AVT Natural Products, Tianjin Zhong€TMan, Pharmaceutical Company Ltd., Shandong Xinhua Pharma, Aarti Industries Limited, Bakul Group, Taj Pharmaceuticals Limited., and Jilin Shulan Synthetic Pharmaceutical Co. Ltd. These players are focusing on new product launches and capacity expansions to strengthen their position in global caffeine market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
