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What is the China market-size (TAM) for the Energy Drink/Energy Boost industry?
Hello! Thanks for your question about China market-size (TAM) for the Energy Drink/Energy Boost industry. The most useful sources I found to answer your question are CChmecials Date & Business Intelligence. The short version is that in 2017, China’s energy drink market is valued at USD 3212.1 million. As Red Bull, Eastroc Super Drink, Dali’s Hi-Tiger and Wahaha’s Qili don't publicly publish their revenue figures, only an estimate of their sales have been provided. Below you will find a deep dive of my findings.
DEEP-DIVE
The energy drink market in China is expanding due to the popularity of western drinks amongst the youth between the ages of 25-35 years. This generation is health conscious and has a growing purchasing power. This growth is augmented by the improved distribution infrastructure and the government policies that support the sales of energy drinks in China. Although there are concerns regarding the high sugar contents in these drinks, manufactures are finding innovative ingredients and products to solve this issue.
Due to these factors, China has become the largest energy drink market with the highest growth rate in the world. In 2015, the sales of energy drinks in China was over 1.40 billion litres which was a 25.00% increase from the previous year. But the annual per capita consumption is less than 2 litres which is a lot lower than other developed countries. This mean China has a huge untapped market for energy drinks.
There are various energy drinks that are dominating the market in China. Largest of these is Red Bull with around 78.2% of the entire market share. Others include Eastroc Super Drink (10.9%), Dali’s Hi-Tiger (5.3%) and Wahaha’s Qili (4.9%).
In 2017, China’s energy drink market is valued at USD 3212.1 million. This number is expected to grow to USD 3952.8 million by the end of 2022 with a CAGR of 4.5%.
CALCULATIONS
Red Bull's estimated sales revenue = Total energy drinks market in China * Red Bull's market share = $3212.1 million * 78.2% = $2511.86 million
Eastroc Super Drink's estimated sales revenue = Total energy drinks market in China * Eastroc Super Drink's market share = $3212.1 million * 10.9% = $350.12 million
Dali’s Hi-Tiger's estimated sales revenue = Total energy drinks market in China * Dali’s Hi-Tiger's market share = $3212.1 million * 5.3% = $170.24 million
Wahaha’s Qili's estimated sales revenue = Total energy drinks market in China * Wahaha’s Qili's market share = $3212.1 million * 4.9% = $157.4 million
SUMMARY
Red Bull's estimated sales revenue in China (2017) = $2511.86 million
Eastroc Super Drink's estimated sales revenue in China (2017) = $350.12 million
Dali’s Hi-Tiger's estimated sales revenue in China (2017) = $170.24 million
Wahaha’s Qili's estimated sales revenue in China (2017) = $157.4 million
CONCLUSION
To wrap it up, in 2017, China’s energy drink market is valued at USD 3212.1 million. As Red Bull, Eastroc Super Drink, Dali’s Hi-Tiger and Wahaha’s Qili don't publicly publish their revenue figures, only an estimate of their sales have been provided. Thanks for using Wonder! Please let us know if we can help with anything else!