Energy drinks are seeing robust growth in Asia, with a projected compound annual growth rate (CAGR) of 11.97% through 2029, according to data analytics firm GlobalData.
This outpaces growth in the US (4.27%) and Europe (8.4%) over the same period, said Tim Hill, key accounts director for South East Asia.
“We are looking at a compound annual growth rate (CAGR) up to 2029 of 11.97% for energy drinks in Asia. And you can see much stronger growth rate than the USA (4.27%) and Europe (8.4%) in the same period.”
According to Hill, the rise of energy drinks in Asia is due to three key areas – accessibility, awareness, and association.
Why energy drinks are growing faster in Asia
Using Red Bull as an example, Hill highlighted how the brand has consistently aligned with consumer needs over the last few decades.
“On accessibility, its varied pack sizes and widespread availability, from supermarkets to convenience stores, ensure that it is both visible and within reach at multiple price points,” said Hill.
“Awareness is driven by the long-running ‘Red Bull Gives You Wings’ campaign, a slogan that is not only memorable but synonymous with performance and energy. Its longevity fosters deep-rooted brand familiarity, giving Red Bull a consistent edge.
“Association is where the brand thrives: through high-profile sports sponsorships, ownership of teams like Red Bull Racing and RB Leipzig, and ties to extreme sports and music events, it embeds itself into vibrant, aspirational lifestyles.”
However, the popularity of energy drinks is at odds with the traditional drivers of consumer purchasing decisions.
The health paradox behind energy drink growth
Health and wellness is one of the most dominant forces shaping consumer behaviour across the FMCG sector. Yet energy drinks, which contain high levels of sugar and caffeine, don’t typically align with mainstream expectations of a healthy beverage.
“Concerns around sugar, artificial ingredients, or pricing might suggest a mismatch with a health-conscious, cost-sensitive, and cautious consumer base. Despite this, energy drinks continue to defy expectations, recording some of the highest growth rates in the drinks industry,” Hill pointed out.
“This paradox signals a deeper consumer mindset: that energy drinks are no longer seen purely as indulgent or impulsive, but as functional, performance-enhancing tools embedded in daily routines.
“Their persistent growth reveals that such products provide consumers with a distinct value proposition, that outweighs the negative perceptions that the industry may carry. This is likely tied into the importance that modern society places on productivity and high performance.”
While consumers can be “distracted away” from health and wellness trends, researchers caution that over consumption of energy drinks can be detrimental to health.
Are energy drinks good for you?
Research has found that energy drinks derive their energy-boosting properties mainly from sugar and caffeine.
“Caffeine in energy drinks will provide the consumer the desirable effects of increased alertness, improved memory, and enhanced mood,” wrote researchers in South Asian Research Journal of Pharmaceutical Sciences.
“Caffeine can have harmful physical consequences, including central nervous system, cardiovascular, gastrointestinal, and renal dysfunction. Energy drinks contain between 14 and 31 mg of caffeine per 100 ml. Although their caffeine concentration (in milligrams per milliliter) may be similar to coffee, energy drinks are often packaged in significantly higher volumes, resulting in increased caffeine intake.”
Large amounts of sugar are also present in energy drinks to achieve the marketed effects of energy boost and to enhance taste.
“The large number of records on the presence of sweeteners in energy drinks – often with several used simultaneously – indicates their widespread use by manufacturers.
“Furthermore, so-called ‘sugar free’ energy drinks contain a sugar substitute in the form of sweeteners, which also pose a health risk to consumers when consumed excessively,” wrote Kamila Górka et al in Energy drinks – trends or awareness choice? A mini review.
Given the rising consumption of energy drinks, researchers have called for more studies into their long-term health effects. They also urged manufacturers to include caffeine warnings on packaging and in advertising material.
“Campaigns should be encouraged in order to spread awareness about the contents and possible side effects of energy drinks. Such campaigns should focus to a greater extent on adolescents and young adults, males, and people of high economic classes,” wrote the researchers.
