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ANALYSIS

Increasing preference as energy-boosting supplement to stimulate anhydrous caffeine sales
Monday, 13 January, 2020, 08 : 00 AM [IST]
The demand for anhydrous caffeine from beverage manufacturers is expected to increase owing to increasing consumption of energy drinks as well as functional beverages. In the US, 80 per cent of adults consume caffeinated energy drinks every day, and the average adult has a daily intake of 200mg of caffeine.

These were among the findings of a study on the anhydrous caffeine market by Persistence Market Research, which added that it has witnessed stable growth in the past few years, which will continue over the following years. The market is set to surpass the revenues worth $1.4 billion by 2019-end.

In addition to the food and beverage industry, caffeine continues to find wide application in cosmetics and personal care, pharmaceutical, and chemical industries. Though prominently used in beverage formulations, increasing consumption of anhydrous caffeine by drug manufacturers and skincare products companies will be a strong factor driving growth of anhydrous caffeine market over forecast period, 2019-2029.

Key takeaways
Majority of demand for anhydrous caffeine is from the food and beverages segment, followed by the pharmaceutical segment. The food & beverage segment accounts for 55 per cent of the market share in the global anhydrous caffeine market.

Consumers prefer caffeine due to its enhancing performance capabilities. Usage of caffeine as a supplement is also gaining popularity due to its perceived property of enhancing energy during exercise. Anhydrous caffeine pills and gums are consumed by adults and working demographic to boost energy and develop better concentration levels.

The increasing demand for anhydrous caffeine from manufacturers of dietary supplements, functional food, and in the pharmaceutical industry is anticipated to boost global demand for anhydrous caffeine. Manufacturers of anhydrous caffeine should capture profits by leveraging increasing demand from these end users to offer specific caffeine products, which can benefit them in the long run.

Anhydrous caffeine market: Competitive landscape
Global market leaders in the anhydrous caffeine market have adopted efficient strategies to increase their presence and market shares in the global anhydrous caffeine market. Key players are investing in strategic expansion of their manufacturing facilities.

Aarti Industries, a leading caffeine manufacturer from India, expanded its production capacity and almost doubled its production of caffeine.

Manufacturers in the food and beverage industry are also introducing innovative caffeine-infused products to cater to the ongoing consumer trend. Such new product launches are helping manufacturers to increase their market share in the global anhydrous caffeine market.

Limitless, a US-based beverage company, developed a new product line of sparkling water with the addition of caffeine. These products are available in six flavours and each contains 35mg of caffeine.
 
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