Overview of the Energy Drinks Market
The global energy drinks market is anticipated to witness high growth owing to the consumer’s increasing attention towards health consciousness and hectic lifestyle. These beverages are intended to give instant energy along with providing mental and physical stimulation. The main ingredients, which helps in providing stimuli, is caffeine. Taurine is another significant component, which is essential for skeletal muscle development and cardiovascular function. Furthermore, significant growth in the number of athletes and sports persons is likely to support the growth of this market in the coming years.
However, a few factors are expected to restrain the growth of the energy drinks market. These factors include:
- Negative publicity: Negative publicity in the media and implementation of stringent government regulations across the globe are posing serious challenges to the development of the energy drinks market. Bad publicity picked up by the mass media can have a substantial negative impact on the brand’s name and sales and profitability for firms in this space.
- Rising health concerns: Today, consumers are increasingly becoming conscious of the health risks associated with the consumption of energy drinks. Therefore, the recent increase in health concerns is another factor that is hindering the growth of the market.
The Business Challenge and Journey
The client, a global manufacturer of energy drinks with manufacturing units spread across the globe, wanted to develop robust sourcing analysis capabilities across categories and geographies to enhance their visibility into spend areas and drive higher savings. Additionally, the client wanted to implement a robust procurement automation system to streamline its sourcing and procurement processes, boost transparency, and increase savings across the supply chain.
The strategic sourcing analysis experts at SpendEdge tailored a cohesive research approach. The approach included primary and secondary research methodology coupled with qualitative and quantitative data collection procedures to help the client enhance their overall procurement process.
During the course of this strategic sourcing analysis engagement, the energy drinks manufacturing client was able to deploy an automation system solution that integrated the end-to-end procurement process from source to contract — one that connected the results of sourcing events to the resulting buyer and supplier contracts. Furthermore, the client not only developed a best-practice methodology to reduce sourcing cycle time but also created long-term interrogable repositories of supplier responses and sourcing activities across their business units.
Key questions answered in this strategic sourcing analysis engagement
SpendEdge’s strategic sourcing analysis engagement helped the client take advantage of the potential opportunities, changing market factors, and unforeseen circumstances with rapid responses. This helped them achieve efficiency gains across their business units.