by 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 Overview:
Guarana is a plant native to the Amazon rainforest region of Brazil. It contains a significant amount of caffeine, which provides energy boosting effects. Guarana is commonly consumed as an ingredient in energy drinks due to its stimulant properties. Energy drinks containing guarana are popular among young adults and athletes for enhancing physical and mental performance. The stimulant effects of guarana also help in weight loss by increasing metabolism. Apart from energy drinks, guarana is also used as a flavoring agent in various food products such as yogurt and ice cream.
Market Key Trends:
Rising popularity of the energy drink industry is driving the growth of the guarana market. According to estimates, the global energy drinks market was valued at US$ 86.39 billion in 2020 and is expected to reach US$ 167.1 billion by 2028, growing at a CAGR of 9.2% from 2021 to 2028. Young consumers are increasingly opting for energy drinks for an instant boost of caffeine and other stimulants. This rising demand for energy drinks is positively impacting the consumption of guarana, which is a common ingredient used in such beverages. Product launches of innovative guarana-containing energy drinks with novel flavors by leading players is also supplementing the market growth. Additionally, increasing adoption of guarana supplements owing to its various health benefits such as weight loss and cognitive functions is propelling the guarana market.
Porter’s Analysis
- Threat of new entrants: The guarana market exhibits moderate threat from new entrants due to high R&D costs associated with developing new products. However, there are low costs associated with raw materials.
- Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes like ginseng. However, the unique functional properties of guarana give existing players an advantage.
- Bargaining power of suppliers: Suppliers have moderate bargaining power due to specialized agricultural skills required for guarana production and limited number of suppliers.
- Threat of new substitutes: Threat from substitutes is moderate as guarana has unique functional benefits. However, products like ginseng offer similar cognitive benefits.
- Competitive rivalry: Intense competitive rivalry exist among existing players to dominate market share.
Key Takeaways
The global Guarana market is expected to witness high growth, exhibiting CAGR of 7.1% over the forecast period 2023 to 2030, due to increasing demand for functional beverages and natural stimulants.
Regional analysis: South America dominates the global guarana market with Brazil being the leading producer globally. The regions of Asia Pacific and North America are the fastest growing markets for guarana due to rising health consciousness.
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.
