The guarana nutraceuticals market comprises products containing extracts of guarana seeds that are used in dietary supplements and functional foods due to their caffeine content and antioxidant properties. Guarana extracts help boost energy and enhance physical performance due to the presence of caffeine, theobromine, and theophylline. It also finds usage in weight management supplements and cognitive function supplements due to its stimulant and mood-enhancing qualities.

Global guarana market is estimated to be valued at US$ 5,062.1 million in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030. Guarana extract is obtained from guarana berries which are naturally grown in the Amazon region and harvested primarily in Brazil. It provides a natural source of caffeine along with other beneficial plant compounds. The stimulant effects of guarana help increase alertness, reduce fatigue and boost metabolic rate, creating more demand for energy drinks and weight loss supplements.

Key Takeaways

Key players in the 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.

The growing demand for natural stimulants to boost energy levels along with increasing health consciousness is driving the growth of the guarana nutraceuticals market. Guarana supplements are finding more usage as ingredients in sports nutrition, nootropics and pre-workout formulations.

Global players in the dietary supplements and functional foods industry are expanding their footprint in emerging markets like Asia Pacific, Latin America and Middle East regions to leverage the growing popularity of herbal products for boosting immunity and cognitive functions.

Market Key Trends

The growing popularity of energy drinks infused with caffeine-containing plant extracts like guarana is one of the key trends witnessed in the market. Brands are introducing innovative drink blends catering to the rising demand for 'pick me up' beverages among health conscious youth and millennial population.

Additionally, innovations in product forms like guarana gummies, candy and chews are gaining traction as they allow convenient supplemental intake of guarana's benefits compared to traditional capsules. This expansion of product portfolio beyond capsules and powders is expected to further propel the market growth over coming years.

Porter's Analysis

Threat of new entrants: There exists low risk of new entrants in this market as reasonable capital is required to manufacture guarana products and developing brand presence. In addition, established players enjoy economies of scale.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes but guaranteed health benefits provided by guarana gives buyers lesser options.

Bargaining power of suppliers: Suppliers have moderate bargaining power as guarana production requires special farming techniques and certification processes. Relatively few suppliers operate in this domain.

Threat of new substitutes: Threat of substitutes is moderate as guarana provides certain unique health advantages over other energizing supplements. However, options like ginseng and ginkgo biloba substitute its functionality to some extent.

Competitive rivalry: Market is reasonably competitive due to presence of few notable players.

Geographical regions concentration:
South America accounts for over 80% of global guarana production, with Brazil being the leading producer. Countries like Brazil, Venezuela and Bolivia contribute majorly to its supply from the region.

Fastest growing region:

Asia Pacific region is fastest growing market for guarana owing to increasing health consciousness and adaptability to herbal supplements in countries like China, Japan and India. Rising disposable incomes and availability of new product formats like energy drinks and candy infusions will drive further growth in the region.