by Guarana is a climbing plant native to the Amazon basin known for its caffeine-rich berries. Guarana berries are widely used for the production of soft drinks, energy drinks, supplements, and other beverages. Guarana extract contains more caffeine than coffee beans and is known to offer mental stimulation and alertness. Popular energy drinks brands like Red Bull incorporate guarana extract in their formulations to provide a boost to the consumer. The global guarana market is primarily driven by the expanding energy drinks industry. Guarana offers an alternative source of caffeine and consumers increasingly prefer plant-based stimulants.
The global guarana market is estimated to be valued at US$ 5,062.1 Mn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Increasing Health Consciousness- There is growing awareness regarding health benefits of plant-based stimulants like guarana over synthetic additives. Guarana extract contains nutrients like vitamins, minerals, antioxidants along with caffeine. This drives its use as a natural energy booster in functional beverages. Consumers are shifting towards herbal products perceiving them to be healthier options.
Rising Demand for Energy Drinks- Energy drinks dominate the functional beverages market owing to hectic lifestyles. Guarana acts as one of the key ingredients facilitating the growth of the energy drinks industry. Leading brands incorporate guarana to deliver the desired caffeinated effect in their products. The expanding energy drinks category worldwide is fueling the demand for guarana extract.
Segment Analysis
Guarana Market is dominanted by the beverages segment which holds around 85% share of the total market. Within beverages, energy drinks segment accounts for the major share mainly due to increasing health consciousness among consumers and growing demand for functional beverages. The energy drinks segment dominated by international brands incorporate guarana in their formulations due to guarana’s stimulant properties.
PEST Analysis
- Political: There are no major political risks impacting the guarana market currently. The government policies support exports of guarana and its extracts.
- Economic: Increasing disposable incomes in developing countries driving demand for premium health drinks containing guarana. Developed markets witness moderate growth due to mature energy drink market.
- Social: Changing lifestyle leading to increasing health issues has prompted consumers to look for natural stimulants and functional beverages containing guarana. Also rising awareness regarding benefits of guarana supplements consumption.
- Technological: Advancements in extraction technologies help manufacturers derive enhanced guarana extracts and formulations that can be incorporated in various product types.
Key Takeaways
The global guarana market is expected to witness high growth over the forecast period due to increasing use of guarana in energy drinks, dietary supplements as well as functional food and beverages.
Regional analysis: North America dominates the guarana market currently owing to high consumption of energy drinks in the US and Canada. The Asia Pacific region is anticipated to emerge as the fastest growing market for guarana attributed to rising expenditue on health drinks in countries like India and China along with growing awareness.
Key players operating in the guarana market are Vitaspice Brasil Ltda, Prover Brasil for Export Ltda, Herboflora Produtos Naturais Ltda, Ambev, Duas Rodas Industrial Ltd, A R De Sousa Ribeiro & Cia Ltd, Natural Amazon Herbs Producao De Extratos Ltda, Iris Trade Inc., The Green Labs LLC, and Nutra Green Biotechnology Co., Ltd. Vitaspice Brasil Ltda and Ambev are the dominating players in the guarana market.
