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Guarana Market – Size, Share, Outlook, and Opportunity Analysis, 2018 – 2026

Guarana is a creeping shrub native to Brazil and its name is derived from a South American Indian tribe, guaranis. Historically, guarana was sold as a fortifier, tonic, antidote to fever, for prevention of hardening of the arteries, and to treat migraines. Guarana fruit is round, small, and bright red in color, and grows in clusters. The seeds are collected, skin is peeled off, and dry-roasted over fire. The kernels are ground to a paste with cassava and molded into cylindrical sticks, which are then sun-dried. Guarana is primarily used as a stimulant due to its high content of caffeine and its coffee content ranges from 2% to 7.5%, which is higher than many other caffeinated plant.

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Market Dynamics

Increasing consumption of caffeinated products is expected to boost growth of the global guarana market. Guarana is a source of high caffeine content and it is widely used in food and beverages applications. There are many advantages of guarana such as natural source of energy, helps in weight loss, anti-bacterial property, remedy for stress, helps in boosting metabolism, mental health, and circulation of blood, which will prevent cardiovascular diseases. These health benefits will promote growth of the global guarana market.

Increasing consumption of dietary & muscle supplements and health consciousness are other factors driving growth of the market. Consumers are now improving their health and nutrition by consuming dietary and muscle supplements. According to a statistics of 2017 by the United States Department of Health & Human Services, the U.S. has a fitness or recreational center within every half-mile, which will boost the consumption of weight loss and gain supplements.

However, excessive consumption of guarana powder or paste during pregnancy and lactation period may lead to low birth weight or premature birth. Excessive consumption of guarana products may lead to high blood pressure, cardiac disorders, diabetes, ulcers, epilepsy, and other disorders. Such disadvantages are expected to restraint growth of the guarana market.

Market Outlook

Among application, food and beverages segment accounted for the highest market share in the global guarana market in 2017. This is due to its wide applications in energy drinks, protein bars, and herbal formulas due to its advantages such as to increase energy and mental focus. Companies are preferring guarana in the manufacturing of food & beverage products such as protein bars, chocolate bars, and energy drinks.

North America held highest market share in the global guarana market in 2017 and is projected to retain its dominance over the forecast period, owing to increasing consumption of caffeinated products, growing health awareness, rising disposable income, and increasing consumption of dietary supplements. Such factors are expected to increase the demand for guarana products, thereby driving growth of the global guarana market. According to a statistics by the U.S Dept. of Health and Human Services in Nov 2017, people in the U.S spend around US$ 2.1 billion on weight-loss dietary supplements in pill form.

Asia Pacific is projected to be the fastest growing region in the market over the forecast period, owing to key factors such as increasing use of cosmetic products and increasing number of obese people. According to a statistics of the United States Dept. of Commerce, personal care and cosmetics products and services market in India was estimated at around US$ 5.0 billion in 2015. The total domestic cosmetics market in India is growing at 15% annually.

Key players in Global Guarana Market

Key players operating in the global guarana market include Herboflora, Duas Rodas Industrial, Natural Amazon Herbs Producao De Extratos Ltd, The Green Labs LLC, AR De Sousa Ribeiro, Nutra Green Biotechnology Co., Ltd., Vitaspice, Ambev, and Prover Brasil

Key players are focusing on adopting various inorganic growth strategies such as mergers and acquisitions, joint ventures, partnerships, marketing, and new product launches to strengthen their foothold in the global guarana market. For instance, in October 2017, Brian Fud Ltd. launched an energy drink containing guarana, as an alternative to coffee and high-sugar beverages. The product is launched under the brand of brain fud in U.K. and is available in three flavors namely, berry and coconut, pineapple and ginger, and citrus and mint.

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