PUBLISHER: Allied Market Research | PRODUCT CODE: 1193322
PUBLISHER: Allied Market Research | PRODUCT CODE: 1193322
The caffeine market size was $715.2 million in 2021 and is estimated to reach $ 1,194 million by 2031, registering a CAGR of 5.2% from 2022 to 2031. Caffeine is an alkaloid compound that is found especially in coffee, guarana, tea, cocoa, guayusa, yaupon holly, and other plants and is a stimulant of the central nervous system as well as acts as a psychoactive drug. Caffeine is a white crystalline purine, mostly a methylxanthine alkaloid with a bitter taste. There are two types of caffeine available in the market such as natural and synthesized caffeine, which are derived from natural and synthetic sources. Commercially natural caffeine is obtained from decaffeinated coffee and tea by extraction using a solvent. Synthetic caffeine is produced from synthetic sources such as urea and chloroacetic acid.
Energy drink manufacturers such as Red bull Inc., Monster Beverages Corporation, The Coca-Cola Company, and others use aggressive marketing campaigns to capture the major share. They majorly target adventurous sports and events such as snowboarding, motorbike sports, and water sports. This creates awareness among consumers and viewers about the energy drink and its health benefits. In addition, these players are launching products with various flavors and tastes to attract a huge customer base, thus the increasing penetration of the sports nutrition industry is expected to create more opportunities for key players in the caffeine market in the upcoming years.
Excessive caffeine consumption has undesirable side effects, including anxiety, sleeplessness, headaches, nausea, and dizziness. Consumers opted out of healthier caffeinated alternatives as a result of these adverse consequences. There is different caffeine substitutes are available in the market such as ginseng, pomegranate juice, maca, baobab, reishi, and others. According to the FDA, 400 mg of caffeine per day, or about 4 or 5 cups of coffee, is usually not harmful or dangerous for healthy adults, but exceeding this limit can have adverse effects. Furthermore, the key players in the food & beverages industry are focusing on research and development to produce an innovative ingredient that may replace caffeine in food & beverage products. excessive consumption of caffeine can cause adverse health effects, which are expected to hinder the growth of the caffeine market.
According to the market analysis, the global caffeine market is segmented into type, application, and region. Based on type, the market is divided into synthesized caffeine and natural caffeine. By application, the market is divided into food, beverages, pharmaceutical, cosmetics and personal care, and nutraceutical. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, Italy, Spain, UK, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, Indonesia, Thailand, and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, UAE, Argentina, and rest of LAMEA).
By type, the market is bifurcated into synthesized caffeine and natural caffeine. The synthetic caffeine segment constitutes a major caffeine market share. This is attributed to increase in the demand for synthetic caffeine has increased owing to the increase in population. Overproduction of caffeine helps to lower the cost; the dependency of various industries on caffeine has increased extensively. Caffeine is one of the major ingredients used in energy drinks, cola, and other caffeinated beverages. Synthetic caffeine is widely used in the pharmaceutical and nutraceutical industry as ingredient. Especially in Asia-Pacific, the demand for synthetic caffeine is anticipated to increase during the forecast period, owing to its high purchasing power.
By application, the pharmaceutical segment dominated the global market and is expected to retain its dominance during the caffeine market forecast period. Majority of the caffeine is utilized in the pharmaceutical industry. Rise in awareness regarding health benefits associated with caffeine consumption is expected to propel the growth of the caffeine market. The caffeine market in LAMEA is anticipated to grow with a CAGR of 6.4% between 2022 and 2031, while the Asia-Pacific market is anticipated to witness a CAGR of 5.8%.
By region, Europe region dominated the global market and is expected to retain its dominance during the caffeine market forecast period. Germany is the leading market in Europe and is also expected to be the fastest growing market. The consumption of caffeine by end-user industries is increasing at a significant rate in Europe, owing to a rise in awareness regarding the health benefits of caffeine among consumers. Europe operates as a single market with 28 countries and is tagged as the major trading power. Furthermore, an increase in product diversification in the category of food & beverages and the development of natural caffeine is expected to propel the demand for caffeine in the upcoming years.
By APPLICATION
By TYPE
By Region