Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Guarana is a dried paste that is extracted from crushed seeds of P. sorbilis or P. cupana. Guarana is widely used across various applications such as cosmetics, food & beverages, and pharmaceutical. Guarana provides various health benefits such as weight management, relieve chronic diarrhea & treat constipation, and is also beneficial in treating cancer.
The Global Guarana Market is projected to surpass US$ 8,485.6 million by the end of 2028, in terms of revenue, growing at CAGR of 7.1% during the forecast period (2021 to 2028).
Rapid urbanization and changing lifestyle of the consumers is fueling the market growth of the guarana. The urban population is highly health-conscious, which is a major factor drifting consumers' preference towards natural ingredient-based food and beverages. According to United Nation data, the proportion of the urban population will reach 66% of the world population by 2050. Thus, the rise in the urban population around the globe is augmenting market growth over the forecast period.
Growing flavored drink segment in the food &beverage market. Guarana market is experiencing tremendous growth on the account of increasing demand for various flavored drinks around the globe. Moreover, growing demand for guarana from the manufacturer of flavored drinks and fruit juice is augmenting the market growth. Furthermore, increasing demand for natural and herbal ingredient-based cosmetics products is again expected to foster the market growth of the guarana over the forecast period.
North America held dominant position in the Global Guarana Market in 2020, accounting for 31.9% share in terms of revenue, followed by Europe and Asia Pacific, respectively. As a result of Growing flavored drink segment in the food &beverage market around the globe.
Figure 1. Global Guarana Market, Revenue Share (%), By Region, 2020
The high cost of guarana is expected to restrict the demand for the product. This is because more than 95% of the global guarana volume is cultivated in Brazil, owing to which producers have full control over its prices. Thus high prices of guarana are one the major factor hinder market growth.
Side-effects associated with the consumption of the product is expected to inhibit the market growth. Irritation, stomach ache, insomnia, vomiting, and nausea are some of the side-effects associated with the consumption of the guarana
The growing use of the product as a caffeine alternative over coffee beans is expected to bring profitable market opportunities. Guarana contains natural caffeine content up to 6% and is four to six times more potent than coffee beans. Moreover, it also has superior anti-oxidant properties because of the presence of saponins, catechins, tannins, and theobromine. Thus, the growing use of the product as a caffeine alternative is projected to augment the market growth of the guarana.
Shifting consumer's preferences from carbonated and artificial drinks to natural energy drinks is expected to offer potential market opportunities in the near future. For instance, in Brazil, Organique offers Organique Energy Drink, which contains guarana as a natural ingredient and offers several benefits such as energy boost, brain stimulator and improves cardiovascular system functioning. Thus, the growing demand for natural energy drinks is projected to foster market growth.
Guarana Market Report Coverage
||Market Size in 2020:
||US$ 5,062.1 Mn
|Historical Data for:
||2017 to 2020
||2021 to 2028
|Forecast Period 2021 to 2028 CAGR:
||2028 Value Projection:
||US$ 8,485.6 Mn
- North America
- Asia Pacific
- Rest of World
- By Product Form: Liquid, And Powder
- By Application: Energy Drinks, Fruit Juice Based Drinks, Confectionery Products, Dietary Supplements, Cosmetics, and Others
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.
- Increasing urbanization
- Growing health-conscious consumers
|Restraints & Challenges:
Figure 2. Global Guarana Market – Opportunity Analysis
- The growing trend of vegetarianism is shifting consumers' preferences towards herbal dietary supplements. Moreover, increasing infusion of natural energizing extracts in confectionery products is again propelling the market growth of the guarana. For instance, Loud Truck EFG LLC offers gummy bear candy filled with extracts of natural guarana. This product offers a similar energy boost as that of regular energy drinks. Thus, the growing demand for herbal dietary supplements is expected to favor the market growth.
- Growing strategic partnership and agreement among key players is one of the key trends in the market. For instance, in April 2018, Donut King partners with V Energy to announce the commencement of a joint venture with V Energy to produce a stimulating energy drink and doughnut hybrid. The new V Donut is a donut coated in green sugar crystals and filled with Guarana-spiked filling.
Figure 3. Global Guarana Market, Revenue Share (%), By Applications, in 2020
Key Takeaways of the Graph:
- The Energy Drinks held dominant position in the market and accounted for 56.8% share in the Global Guarana Market in 2020. The segment is expected to reach US$ 4,819.8 million in 2028.
- Growing health-conscious consumers around the globe are driving demand for dietary supplements. Moreover, increasing demand for dietary supplements is a prime factor fuelling the market growth as guarana is widely used in the production of supplements. For instance, guarana is an effective energy booster, relieves physical and mental fatigue, and helps to boost metabolism for weight loss, which are major factors expected to drive demand for the product among health-conscious consumers. Therefore, growing health-conscious consumers around the globe is majorly driving the market growth of guarana.
Global Guarana Market - Impact of Coronavirus (Covid-19) Pandemic
The ongoing COVID-19 pandemic has had a major impact on the food and beverage industry, as well as the expansion of the global guarana market. The market has been impacted by the unexpected closure of national and international borders, which has resulted in a loss of operational efficiencies and value chain disruptions. However, while the pandemic has had an influence on supply chain operations, it has also produced a demand for healthy living among consumers, resulting in a shift in consumer focus toward nutritional foods. The global Guarana Market is also being driven by a shift in consumer preferences toward vegan.
Major players operating in the global guarana market include, 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.
Few Recent Developments
- In May 2021, CreamyFeel is a clear solution developed by Duas Rodas that provides a perfect connection between healthiness and enjoyment by enhancing creamy flavors and creating a fullness experience to compensate for the low-fat content in dairy products and plant-based drinks.
- In February 2021, According to the Food Ingredients Innovation Awards, ingredients from the multinational Duas Rodas are among the most innovative in Brazil for the fourth year in a row. The award's goal is to encourage innovation and recognise the creation of consumer-friendly products from the industry.
- In February 2021, Duas Rodas, a national specialist in the production of flavours and ingredients for the food and beverage industries, introduces the Plant Based Solutions technical platform, which allows vegetable proteins to have the flavour, juiciness, and texture of meat.