Sports Drink Market Trends for 2021/2022 and Beyond

In this post, we look at the sports drink market – considering not just its market size, but also the various trends that are already having an impact on the market and the trends that will have a greater impact in the future.

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A Brief History of Sports Drinks

It’s hard for people living now to think back to a time when there was no such thing as a sports drink on the market.

Back in 1909, however, the advice of James E. Sullivan, who was in charge of the US Amateur Athletic Union at the time, was that runners should not “get into the habit of drinking and eating” during races, as some prominent runners had done, because he suggested it was “not beneficial”.

Sounds laughable now, doesn’t it?

When modern scientific understanding dictates that consuming certain nutrients before, during and after any kind of exercise can be beneficial to performance and recovery.

It’s even more humourous when you consider just how massive the global sports drink market is and the sheer number of brands and products out there.

They are all working to meet the increasing demand of consumers.

Nowadays, it’s not just athletes who drink sports drinks (if it ever really was.)

How big is the sports drink market?

Although the numbers vary depending on the report you read and when it was published, during 2018, the global sports drink market was worth more than $23.54b.

There are no signs of this continued sports drink market growth slowing down any time soon, as it is likely to continue to increase during the forecasted period of 2019 to 2026 with a CAGR of 4.2% to $32.61b.

When and Why did sports drinks become popular?

Sports drinks steadily became popular since their inception.

Gatorade is often credited as being the very first sports drink and its creator Robert Cade considered the inventor of the new form of beverage.

The interesting thing is, however, that Lucozade, the incredibly popular and successful British sports drink, already existed a good number of decades before.

It was invented by a chemist called William Owen, who originally purposed sugar water as a palatable source of energy and calories for the sick.

The main reason Gatorade is often credited as being the first all comes down to the fact that Lucozade didn’t receive proper beverage marketing as a sports drink until the mid-80s.

Although it had been available since 1965, Gatorade only became more mainstream popular following 1983 when it became the NFL official sports drink.

Once Lucozade realised their product could be remarketed as a replacement energy sports drink, it quickly gained popularity from 1985 onwards.

Trends to Watch in the Sports Drink Market

Now, let’s look at some of the interesting developments and trends in the sports drinks market.

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Brands Target Millennials and Women Consumers

As two of the fastest-growing sports product markets are Millennials and Women, sports drinks brands have been continuing to release new beverages aimed specifically at them.

A driving force is that over the last few years more women have been actively been involved in sports.

As Millennials are very interested in environmental issues and love variety, they are always looking for new and exciting flavours and eco-friendly products.

Increase In Esports Drinks

As strange as it sounds, thanks to the continued increase in popularity of Esports, and the bigger sponsors and larger prize funds that come along with it, many brands have created Esports-specific sports drinks.

The gamer space within the young adult market is one experiencing the biggest growth.

Brands like Engage and Nau Drinks are developing beverages that offer ingredients that help with brain health and performance.

Super Drinks Are Becoming More Prevalent

In the past, different sports drinks offer different functionality, which often means consumers would need to buy and consume a variety of these to get the best results.

A growing trend, however, is for brands producing what is being dubbed as “super drinks”. These are all-in-one beverages that offer multiple claimed functions.

Niche Brands and Manufacturers Are Challenging the Bigger Brands

Smaller sports drinks manufacturers are having a lot of success in challenging the bigger brands with more niche products.

As the global sports drink market becomes more and more competitive, there are plenty of opportunities for these brands.

One great example of this is the brand BodyArmor, which is one of the fastest-growing, that offers functional ingredients for specific use.

Natural Ingredients and Clean Labels

Consumers in the sports drinks market are interested in clean labels and natural ingredients.

The problem with these terms is that there is no standardized or universally-accepted meaning.

However, the trend of reformulating existing beverages and formulating new beverages to meet natural clean label standards is still happening.

Though it really depends on the brand and the consumer what those words mean, many brands are still producing products with clean energy, clean performance, and clean protein claims.

Natural Sweeteners and Low-Sugar Alternative

The sports drink market is also seeing a greater push for drinks with low sugar levels and natural sweeteners.

Despite the prevalence of sucralose, many are turning to use ingredients like monk fruit.

In the past, the issue with many of these natural sweeteners was the fact that their flavour had a lingering bitterness that was not pleasant.

Thanks to developments in stevia flavour and technology, however, low-calorie sports drinks that taste delicious are more widely available.

Fortified Rehydration

One niche market within the sports drinks market that is also experiencing a boost is Fortified Rehydration.

These are drinks that are electrolyte-fortified, clean waters that are being marketed as rehydration sports beverages as post-workout recovery aids.

Branded products like Resqwater from Intelligent Beverages contain bioactive ingredients like L-theanine that help with brain health.

Powered Rehydration Sports Drinks

Following on from the above, rehydration sports drinks in powder form are becoming increasingly popular.

Products like SOS Hydration and Liquid I.V. are just two of the big names.

Increasing Demand for Functional Sports Drinks for Consumers in Developed Countries

With the increased awareness everyday consumers have in health and wellbeing, there is an escalating demand for functional beverages.

Rather than just seeing them as refreshments, consumers consider sports drinks to be convenient food and nutritional supplement products.

This is driven by the sustained focus on free from, natural, wellness and protein trends.

Isotonic Sports Gaining Popularity

Isotonic drinks are typically sports drinks that have been formulated to contain the same concentrations of sugar and salt that are naturally in the body.

The science behind this is that they are better able to replace fluids lost through sweating quickly while supplying a high level of carbohydrates.

Unsurprisingly, as they are the go-to choice for the majority of athletes like long and middle-distance runners and those participating in team sports, isotonic drinks will continue to grow in popularity.

With impressive growth expect for this kind of product between 2017 and 2022. This particular segment of the market accounted for over two-fifths of the revenue share of global revenue towards the end of 2017.

Modern Trade Set to Become the Most Important Distribution Channel

Out of all the different distribution channels utilised, it is forecasted that modern trade of sports drinks by the end of 2022 will have amassed a value of $8,700m.

This means more extravagant product ranges, increased customer interaction when they purchase and more promotions.

Summary

Overall, there seems to be an interesting blend of brand new trends and a return to the old-school in the sports drink market’s future. Though one thing remains clear – sports beverages and their market value is projected to go from strength to strength.

Got a sports drink in the pipeline? Need help from an experienced international food marketing and beverage marketing agency?

At Greenseed Group, we’ve got the expertise to help get your beverage in front of a larger market.

Contact Us today to see how we can help!