India Energy Drinks Market Outlook – Urbanization and Increasing Disposable Income Driving Growth

Netscribes, Inc. launches a report on the Energy Drinks Market in India 2017 covering a market with strong growth potential. It is a part of Netscribes' Retail Industry Series.
By: Netscribes (India) Pvt Ltd
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Mumbai - Maharashtra - India


MUMBAI, India - Sept. 4, 2017 - PRLog -- Global market intelligence firm, Netscribes, Inc. released its latest report on the 'Energy Drinks Market in India 2017 ('. Rapid urbanization and increase in disposable income has resulted in a rise in the demand for energy drinks. The market for energy drinks in India is forecasted to witness high growth in the coming years.

Netscribes' latest market research report titled Energy Drinks Market in India 2017 states that the market for energy drinks in India will witness strong growth in the next five years. Increasing purchasing power of citizen along with urbanization has made energy drinks a popular beverage option. Moreover, awareness about health benefits of energy drinks compared to other beverages such as carbonated drinks is resulting in a greater uptake of these products. The category has become particularly popular among the urban youth who are generally more willing to try out new products and are backed by a greater purchasing power. Until now the focus of energy drink manufacturers has predominantly been only on urban regions which limit the growth opportunities for the sector. However, this outlook is expected to change in the next few years and companies are expected to penetrate the semi-urban regions.

In 2015, the Food Safety and Standards Authority of India (FSSAI) banned the products of several players as it felt the combination of caffeine and ginseng used in these products was harmful to human health. Although this negatively impacted the market in the second half of 2015, by the beginning of 2016, most companies had started reintroducing their products after changing the formulation. However, the FSSAI continues to keep a close watch on these products. Despite the regulatory challenges in the industry, the market is expected to exhibit strong growth and more players are expected to foray into the energy drinks segment.

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