Market Analysis of the Health Drink Industry: Opportunities and Trends

This report provides a comprehensive market analysis of the health drink industry. It begins with an introduction to health drinks and their benefits, followed by an examination of the industry's attractiveness, considering factors like regulation and consumer trends. The report identifies key target markets, including North America, and analyzes customer needs, such as the demand for low-calorie and natural beverages. It highlights the increasing consumption of health drinks among various demographics, including athletes and adults seeking a healthy lifestyle. The analysis further explores the influence of e-commerce and the growing preference for natural ingredients. The report concludes by emphasizing the increasing demand for health drinks and the evolving market dynamics, including the need for sugar-free and organic options. The report references several academic sources to support its findings.

Running Head: MARKET ANALYSIS OF HEALTH DRINK MARKET
Market Analysis of Health Drink Market
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1MARKET ANALYSIS OF HEALTH DRINK MARKET
Introduction
Health drinks are items that restore a small portion of health when used. Healthy
drinks give families, especially growing children, and give adults energy. The some of the
health drink available in the market are Green tea, Kombucha, Beet Juice, Cranberry Juice
etc. The main aim of the paper is to analysis the market opportunities in health drink market.
Industry Attractiveness
The health drink industry is regulated by various international and national regulators
throughout the world. Rising concerns about obesity and other health problems are changing
the health drink industry. The demand for functional drinks, such as relaxation drinks, energy
drinks and types of coffee and tea ready to drink, is becoming increasingly popular due to its
low-calorie content (Hidalgo, 2017). The increased consumption of health drinks due to fast
schedules, urbanization and increased health problems are expected to drive market growth.
Sales of health drinks are highly dependent on the industry's ability to market a variety of
foods and distribute them through highly efficient distribution channels such as large
supermarkets or retailers such as Safeway, Walmart and Carrefour. A key factor in industrial
growth is an increase in distribution channels and outreach in urban and rural areas.
Target Markets
The North American health drink market is mainly driven by increasing health
problems and awareness of the benefits of health drinks (Al-Shaar, et. al, 2017). The easy
availability of health drinks on various platforms, from modern retail to online sales channels,
has led to the expansion of the global market. In addition, an increase in retail entry has
accelerated the growth of the health drink market. The availability of energy drinks on e-
commerce platforms also makes it easier to buy goods without physical restrictions for

2MARKET ANALYSIS OF HEALTH DRINK MARKET
consumers. Ecommerce not only offers convenience and comfort, but also provides product
information, prices, benefits, and full appreciation before make a purchase.
Health drinks are becoming increasingly popular among athletes, students, service
members and even adult consumers. With regard to end consumers, the adult segment has
gained maximum market share due to the increased consumption of energy drinks by adults
who work to maintain a healthy lifestyle (Kansagra et. al, 2015). This segment is expected to
grow due to increased awareness of nutrition and food intake among athletes. This is due to
an increasing trend between corporates and athletes who consume energy drinks with extra
energy doses to improve their performance.
Customer Needs
Increased consumption of products by people who work to maintain a healthy
lifestyle, awareness of nutrition and the adoption of athletes and people who work to maintain
nutritional balance and increase disposable income will stimulate the global growth health
drink market (Carpenter et. al, 2016). The health drink market has grown phenomenally in
recent years. This drink is said to increase energy levels, physical alertness, and productivity.
Health drinks have long outgrown the growth of conventional carbonated drinks because they
are considered a healthy substitute for sweet carbonated drinks. The main ingredients of
energy drinks are vitamins, minerals, natural ingredients, amino acids and antioxidants.
Around 31% of children aged 12 to 17 years and 34% of children aged 18 to 24 consume
health drinks regularly.
In the perspective of the beverage industry product development, 62% of US
consumers are looking for natural beverage options, partly because of the continuing decline
in the soda category and the fast growth of organic drinks. Natural offerings are a top priority
for health-conscious beverage buyers these days. Consumers also increase the amount of

3MARKET ANALYSIS OF HEALTH DRINK MARKET
ingredients they think are healthy, such as protein and probiotics, and look for drinks that fit
their lifestyle (Kumar, Park & Onufrak, 2015).
Conclusion
Healthy drink products have different problems in many populations, with Hispanics
and the age group 18 to 35 years being very vulnerable to these products, while millennial
consumers choose to consume these drinks regularly. In the coming decades, demand for
health drinks will peak because these two consumer groups have grown significantly
(Szathvary, & Trestini, 2014). With the commercial impetus for the popularity of these
products, industry participants are not exempt from the strength of the larger drinks overall.
The demand for sugar-free energy drinks or low-sugar products with natural ingredients is
increasing. In addition, these organic or natural drinks must meet all the functional properties
of conventional products and the expectations of modern consumers and their complex
requirements. From the start, from newcomers to old brands, the energy drink market is still
in an evolutionary era that will redefine these products in the near future.

4MARKET ANALYSIS OF HEALTH DRINK MARKET
Reference
Al-Shaar, L., Vercammen, K., Lu, C., Richardson, S., Tamez, M., & Mattei, J. (2017). Health
effects and public health concerns of energy drink consumption in the United States: a
mini-review. Frontiers in public health, 5, 225.
Carpenter, D. M., Geryk, L. L., Chen, A. T., Nagler, R. H., Dieckmann, N. F., & Han, P. K.
(2016). Conflicting health information: a critical research need. Health
Expectations, 19(6), 1173-1182.
Hidalgo, H. A. (2017). Market Potential of Pasteurized Coconut Water in the Philippine
Beverage Industry. International Journal on Advanced Science, Engineering and
Information Technology, 7(3), 898-903.
Kansagra, S. M., Kennelly, M. O., Nonas, C. A., Curtis, C. J., Van Wye, G., Goodman, A., &
Farley, T. A. (2015). Reducing sugary drink consumption: New York City’s
approach. American journal of public health, 105(4), e61-e64.
Kumar, G., Park, S., & Onufrak, S. (2015). Perceptions about energy drinks are associated
with energy drink intake among US youth. American Journal of Health
Promotion, 29(4), 238-244.
Szathvary, S., & Trestini, S. (2014). A hedonic analysis of nutrition and health claims on fruit
beverage products. Journal of Agricultural Economics, 65(2), 505-517.