Energy drinks have always been a subject of controversy not just in Latin America, but worldwide. The high proportion of caffeine in energy drinks can lead to health risks like high blood pressure and insomnia and increase the heartbeat to abnormal levels.
Taurine, another ingredient found in energy drinks, helps in regulating muscle contractions, heartbeat, and energy levels. It is an amino acid that is naturally present in the human body. However, a very high intake of taurine may lead to heart palpitations. In addition, consumers are increasingly becoming conscious of these health risks and are opposed to the consumption of energy drinks containing these ingredients.
That being said, the Energy Drink market in Latin America is one of the fastest growing regional markets in the Global Energy Drink Market in the Beverage industry, growing at a CAGR of 21.24 percent for the 2013-2018 period in terms of revenue.
So why is the market continuing to flourish if energy drinks are unhealthy?
Energy drink brands like Grupo Petrópolis, Monster Beverage Corp., Red Bull and Coca-Cola are designing products using more natural ingredients in order to meet consumer demand for healthier energy drinks. At present, consumers are looking for more effective drinks made from natural ingredients that are better suited to their needs and lifestyles. Consumers are increasingly seeking information regarding the potential health benefits of natural ingredient-based energy drinks. They are worried about the harmful effects of the caffeine in energy drinks and are careful about purchasing such energy drinks.
Therefore, manufacturers have launched energy drinks with natural ingredients such as extracts from organic guarana and organic raw green coffee beans, which are considered to enhance physical and mental performance.
For instance, Scheckter’s OrganicEnergy is a 100 percent organic energy drink. It contains organic Brazilian guarana, organic raw Brazilian coffee seed, ginkgo biloba, organic pomegranate juice, organic ginseng, organic elderberry, organic lemon juice, organic raw Fairtrade sugar, and natural spring water. Several vendors in the market are innovating with unique ingredients and introducing numerous assortments of natural energy drinks.
By developing energy drinks using more natural ingredients, vendors are changing the way consumers view their products. Traditionally, energy drinks were used by consumers when they were exhausted and needed instant energy. However, this trend among consumers has witnessed a radical change, whereby energy drinks are being consumed as casual drinks very similar to packaged juices and soft drinks.
In addition, consumers have been substituting energy drinks for alcohol. Therefore, increased casual consumption of energy drinks is another trend that is expected to lead to the growth of the Energy Drink market in Latin America during the forecast period.
For more information about this market, view our 2013-2018 report on the Energy Drink Market in Latin America.
Cover Photo by: Lisa Padilla via Flickr (cc)
