South America Energy & Sports Drink Market Outlook, 2028

Energy and sports drinks are now common in the South American region, particularly among athletes and anyone who engages in intense exercise. The primary factor influencing growth in the South American energy and sports drink industries is rising demand for different functional beverages due to increasing health awareness and growing demand from millennials. South America has a rich cultural heritage, and traditional beverages such as mate in Argentina, terere in Paraguay, and guarana-based drinks in Brazil have a strong presence. These traditional drinks often compete with energy and sports drinks in terms of consumer preferences and consumption habits. Guarana is a fruit native to the Amazon rainforest and is commonly used in traditional beverages in Brazil. It is known for its natural caffeine content and is believed to provide energy and boost stamina. Guarana-based drinks are consumed as a refreshing and invigorating beverage, reflecting the cultural heritage and indigenous traditions of the region. The energy and sports drink market in South America is expected to continue growing, driven by factors such as increasing urbanisation, rising disposable incomes, and a growing emphasis on health and wellness. Manufacturers are likely to focus on product innovation, catering to specific consumer demands, and expanding distribution networks to capitalise on the market's potential. With the growing demand for healthier options, there has been an emergence of natural and organic energy drinks in South America. These beverages are formulated with natural ingredients, including plant extracts, fruit juices, and organic sweeteners, offering a cleaner and more sustainable energy boost.

According to the research report "South America Energy & Sport Drink Market Outlook, 2028," published by Bonafide Research, the market is anticipated to add USD 2.09 Billion in market size from 2023–28. Interest in sports and fitness activities has been on the rise in South America. More people are participating in sports, gym workouts, and outdoor recreational activities. This increased engagement in physical activities fuels the demand for energy and sports drinks, which are seen as performance-enhancing beverages. South America is influenced by global fitness trends, and consumers often adopt practises and products that are popular in other parts of the world. The growth of the fitness industry, the rise of sports events, and the increased focus on physical well-being contribute to the demand for energy and sports drinks. As well, energy and sports drink companies often sponsor sports events, teams, and athletes. This sponsorship helps to increase brand visibility, create product associations with active and healthy lifestyles, and engage with consumers who are passionate about sports and fitness. Based on the product types, which include energy and sports drinks in the South America region, Energy drinks account for the largest market share. South America is a region with busy lifestyles and a fast-paced culture. Energy drinks are known for their ability to provide an instant energy boost and promote alertness. The caffeine and other stimulating ingredients in these beverages help combat fatigue, improve focus, and increase productivity, making them appealing to individuals seeking a quick pick-me-up. Peer influence and social trends also play a role in the popularity of energy drinks in South America. When individuals see others consuming energy drinks, it creates a social norm and influence that encourages them to try these beverages themselves. Additionally, the desire to fit into a particular social group or be part of a trend contributes to the high market share of energy drinks.

Based on the report, the South American market is segmented into three countries, including Brazil, Argentina, and Colombia. Among them, Brazil will dominate the market in 2022. Brazilians, in general, are known for leading active lifestyles and being fitness-conscious. There is a growing interest in fitness activities, gym workouts, and outdoor sports among the population. Energy and sports drinks are perceived as aids for hydration, energy replenishment, and enhancing physical performance, aligning with the fitness-focused mind set of Brazilian consumers. Brazil has a tropical climate with warm temperatures throughout the year, especially in regions like the Amazon and the coastal areas. The hot and humid climate creates a need for hydration and energy replenishment, making energy and sports drinks a popular choice to combat heat and provide an energy boost. Based on the types of energy drinks, which include energy and sports drinks, in South America, energy drinks have the highest market share in this region. With a huge population actively engaged in sports and fitness activities, South America has a vibrant sports culture. Energy drinks are frequently linked to athletic ability, endurance, and recuperation. Energy drinks are a supplement used by athletes and fitness enthusiasts to improve their physical performance during exercises or contests. There are several flavours that are leading the South American energy drink market, like Berry flavours such as strawberry, raspberry, and mixed berry are also popular choices. These flavours provide a hint of sweetness and a burst of fruity goodness, adding a pleasant taste to energy drinks. Furthermore, South America's tropical climate and vibrant culture make tropical flavours a hit in the energy drink market. Flavours like pineapple, mango, passion fruit, and guava offer a tropical twist that aligns with the region's lifestyle and preferences.

Based on the types of energy drinks—alcoholic and non-alcoholic—in this region, the non-alcoholic drink is leading the market. In many South American countries, socialising often revolves around food and drink. Non-alcoholic beverages provide an inclusive option for individuals who do not consume alcohol, including children, non-drinkers, and those who prefer to abstain. Non-alcoholic drinks are commonly served at social gatherings, parties, and events, contributing to their popularity and leading market position. Based on the types of energy drinks, which include the non-organic and organic types in South America, the non-organic segment is leading the market. In the future, the organic segment will lead the market. Non-organic energy and sports drinks often have a lower price point compared to their organic counterparts. South America has a diverse population with varying income levels, and affordability plays a significant role in consumer choices. Non-organic options are more accessible to a wider range of consumers due to their competitive pricing, making them more popular in the market. The availability of organic energy and sports drinks in South America may be relatively limited compared to non-organic options. Organic products often require specific certifications, the sourcing of organic ingredients, and adherence to stringent standards, which can present challenges for manufacturers. The limited availability of organic options can contribute to the dominance of non-organic drinks in the market.

Based on the types of sport drink products, which include isotonic, hypotonic, and hypertonic, in the South America region, the isotonic has the largest market share due to Sports beverages that are isotonic are especially designed to replace fluids and electrolytes lost during physical exercise. Many areas of South America experience warm weather, making it necessary for people who exercise and play sports to drink enough water. Drinks that are isotonic include a balanced amount of water, carbs, and electrolytes, which makes them ideal for rehydrating and preserving peak performance. Efforts to educate consumers about the benefits of hydration during physical activity have contributed to the popularity of isotonic sports drinks. Awareness campaigns and endorsements by athletes and fitness professionals have increased consumer understanding of the role isotonic drinks play in hydration, electrolyte replenishment, and performance optimisation. Based on the sport packaging types, which include bottles and cans, bottles have the highest market share. Bottle packaging provides convenience to consumers, allowing them to easily carry and consume sport drinks on the go. Bottles are portable and can be easily resealed; making them suitable for active individuals engaged in sports and fitness activities. The convenience factor has contributed to the popularity of bottle packaging in the South American market.

There are several opportunities and constraints for the energy and sports drink market, like The energy and sports drink market in South America is subject to various regulatory requirements and standards. Companies must navigate these regulations related to labelling, ingredients, health claims, and product safety to ensure compliance. The market for energy and sports drinks in South America is competitive, with both local and international players vying for market share. Companies entering the market will need to differentiate themselves through unique value propositions, branding, and product innovation to stand out from the competition. Opportunities like the increasing awareness and interest in health and fitness in South America Consumers are seeking products that support their active lifestyles, creating opportunities for energy and sports drink companies to cater to this demand. South America has a diverse population with varying tastes and preferences. This diversity offers opportunities to develop a range of energy and sports drink products that cater to different consumer segments, including flavour preferences and nutritional requirements. Notable start-ups in the energy and sports drink space in South America These start-ups have gained recognition for their innovative approaches and have shown potential in the market. Suco de Frutas is a Brazilian start-up that focuses on natural fruit juices and smoothies. While not solely energy or sports drink brand, they offer products that cater to health-conscious consumers looking for natural and nutritious beverages to support their active lifestyles. Geracao 80 is a Brazilian start-up that offers sports drinks with unique formulations and flavours. They emphasise natural ingredients and aim to provide hydration and performance enhancement for athletes and active individuals.

Considered in this report

• Geography: South America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• South America Energy & Sport Drink market with its value and forecast along with its segments
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:

• Brazil
• Argentina
• Colombia
By Product types
• Energy Drink
• Sport Drink

By Distribution channel

• Supermarket/Hypermarket
• Convenience Stores
• On-Trade
• Online

By Energy Drink Product Type

• Non-Alcoholic
• Alcoholic
By Energy Drink Types
• Non-Organic/ Conventional
• Organic

By Sport Drink Products types

• Isotonic
• Hypotonic
• Hypertonic

By Sport Drink Packaging Type

• Bottle
• Cans

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Smart Lighting industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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