Caffeine Market - Forecast(2023 - 2028)

The Caffeine Market size is estimated to reach $23.3 billion by 2027 and it is poised to grow at a CAGR of 7.2% over the forecast period of 2022-2027. Caffeine's expanding uses in numerous end-use industries, such as cosmetics and food and beverages, are likely to boost caffeine industry demand. And increased caffeine consumption to treat diseases such as colon, liver and colorectal cancers is fueling the caffeine market size. Caffeine is a white crystalline powder that is extracted from plants. It is known as a drug that stimulates the nervous system in the pharmaceutical industry. Caffeine levels in cocoa beans range from 0.1 to 0.7 percent. Caffeine can also be found in small levels in the skin that surrounds cocoa beans. Caffeine derivatives made from synthetic sources are known as synthesized caffeine. Unlike natural caffeine, which is derived from coffee, tea, cocoa leaves and other natural sources, synthetic caffeine is created in a laboratory using a variety of chemical components. Urea and cyanoacetic acid are the major synthetic substances that are utilized to make synthetic caffeine. 

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Caffeine Market Report Coverage

The “Caffeine Market Forecast (2022-2027)" by Industry ARC, covers an in-depth analysis of the following segments in the Caffeine Market.

By Type - Natural Caffeine and Synthesized Caffeine.
By End-user - Food & Beverages, Pharmaceuticals, Flavors & Fragrances, Skin Care Products and Others.
by Distribution Channel - Supermarkets/Hypermarkets, Convenience Stores, Discount Stores, Specialty Stores, E-commerce, and Others.
By Geography - North America (the U.S., Canada and Mexico), Europe (Germany, United Kingdom (UK), France, Italy, Spain, Russia and the Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia & New Zealand and Rest of Asia Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America) and Rest of the World (the Middle East and Africa).


Key Takeaways

  • Individuals' increasing intake of caffeinated beverages is a crucial driver driving the global caffeine industry forward.
  • Furthermore, rising health awareness and increased participation in sports and physical activities are driving global market size.
  • Caffeine's expanding uses in numerous end-use industries, such as cosmetics and food and beverages, are likely to boost caffeine industry demand. 


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  • The Detrimental Effects of Excessive Caffeine Consumption are Impeding Caffeine Market Share.

    Over consumption of caffeine causes negative effects such as restlessness, insomnia, headaches, dizziness, dehydration and anxiety. These adverse effects prompted customers to seek out healthier caffeinated substitutes. Ginseng, pomegranate juice, maca, baobab and reishi are just a few of the caffeine substitutes. The FDA has found that 400 mg per day roughly 4 or 5 cups of coffee is not typically associated with dangerous or damaging effects in healthy people, but that exceeding this amount can have harmful implications. According to Mayoclinic, The US Food and Drug Administration has warned that caffeine in powder or liquid form can contain hazardous quantities of caffeine. Each teaspoon of caffeine powder is about the same as 28 cups of coffee. Furthermore, food ingredients industry players are focusing on creating items that may replace caffeine in food products, which is projected to limit caffeine market growth.

    Caffeine Industry Outlook

    Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Caffeine Market. The top 10 Caffeine Market companies are-

    1. BASF SE
    2. CSPC Pharmaceutical Group Limited
    3. Shandong Xinhua Pharmaceutical Co Ltd.
    4. Aarti Healthcare Ltd.
    5. Jilin Shulan Synthetic Pharmaceutical Co Ltd.
    6. Kudos Chemie Limited
    7. Spectrum Chemical Mfg. Corp.
    8. Tianjin Zhong'an Pharmaceutical Co. Ltd.
    9. Taj Pharmaceuticals Ltd.
    10. Bakul Group

    Recent Developments

    • In September 2019, Bawls Acquisition LLC (a soft drink manufacturing firm based in the United States) added BAWLS Guarana's Cherry Cola to its premium line of highly caffeinated sodas. BAWLS Guarana's current collection of caffeinated sodas includes Orange, Cherry, Root Beer, BAWLS Zero and Ginger, among others.
    • In August 2019, Atomo Coffee Inc. revealed that it has received US$ 2.6 million in funding to produce the world's first molecular coffee made without the use of beans. By reverse-engineering coffee beans, the startup hopes to halt deforestation.
    • In March 2019, the Coca-Cola Company released Coca-Cola Energy, an energy drink. In Hungary and Spain, the product was released. Caffeine was derived from natural sources, such as vitamin B and guarana extracts, in this energy drink. 

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