Guarana is a plant native to the Amazon basin known for its caffeine-rich beans. Guarana extracts are commonly used as an ingredient in energy drinks and other beverages to provide a stimulant effect. The demand for energy drinks and functional beverages with natural caffeine sources like guarana has been increasing significantly. Guarana offers multiple health benefits such as increased energy and alertness, weight management, improved mood, and enhanced cognitive function. 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 Opportunity:
The increasing demand for energy drinks has opened vast market opportunities for guarana extracts. Guarana is widely used by leading energy drink brands as a key functional ingredient. As consumers are increasingly preferring natural caffeine alternatives in their energy drinks, the use of guarana provides beverage manufacturers a competitive advantage. The stimulant properties of guarana make it an effective active ingredient in energy drinks. The booming energy drinks industry coupled with the growing health-consciousness among consumers is expected to drive increased adoption of guarana extracts in the coming years. Major energy drink companies are expected to innovate new product lines featuring guarana to attract more customers. This rising demand from the energy drinks segment is projected to significantly contribute to the growth of the guarana market over the forecast period.
Porter’s Analysis
- Threat of new entrants: Low due to requirement of certification and large initial investment requirements.
- Bargaining power of buyers: High due to availability of substitutes and buyers consolidate purchasing power.
- Bargaining power of suppliers: High due to limited number of guarana producers and suppliers control the majority of production.
- Threat of new substitutes: High threat from caffeinated drinks and supplements.
- Competitive rivalry: Fierce competition among existing players to gain market share.
SWOT Analysis
- Strengths: High caffeine content leads to energy boosting properties. Increasing popularity and consumption in sports and dietary supplements sector.
- Weaknesses: Limited geographical cultivation area impacts supply constraints. Quality and consistency in supply dependent on climatic conditions.
- Opportunities: Untapped growth potential in developed regions of North America and European countries. New product development through research and innovation in delivery formats.
- Threats: Stringent regulatory framework and certifications hinder new entrants. Increase in prices of raw materials affects profitability.
Key Takeaways
The global Guarana market is expected to witness high growth over the forecast period of 2023 to 2030. The market size for 2024 is estimated to be US$ 5,062.1 Mn with a CAGR of 7.1% during the forecast period.
Brazil currently dominates the global production and export of guarana with a share of over 80% owing to suitable agro-climatic conditions. The Brazilian guarana market is projected to maintain its dominance supported by large scale harvesting in the Amazon forest region and presence of key guarana producers like Vitaspice Brasil Ltda, Prover Brasil for Export Ltda, and Herboflora Produtos Naturais Ltda in the country.
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. Ambev leads the global guarana sales, distributing the Brazilian soft drink Guaraná Antarctica worldwide followed by Duas Rodas Industrial Ltd commercializing guaraná powder and seed products. Guarana is increasingly utilized as functional ingredient in energy drinks, dietary supplements, and confectionery products across developed regions indicating future growth prospects.
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