Economic Costs of Caffeine Beverage Restrictions and Withdrawal: A Global Perspective

Adeyemi Olayisade

MPRA Paper from University Library of Munich, Germany

Abstract: This study investigates the nature and workings of the caffeine industry, it also examines its importance, production patterns and contributions to GDP in major countries around the world. The caffeine industry produces caffeinated beverages especially energy drinks, coffee and tea. The core of this study revolves around the dilemma on the economic and health cost of caffeinated beverage control. Today the caffeine market is worth more than $10 billion dollars and is estimated to reach $320 billion by 2032, it is growing fast with increased consumption of coffee, tea, and energy beverages, these drinks do not simply form part of the everyday lives, but they are also important in the economies of most countries. As it is, countries such as Brazil, Vietnam and Colombia produce and export caffeine in large volumes boosting their Gross Domestic Product. Brazil alone consumes 3 million metric tons of coffee generating 6 billion yield in exports and provides people with 8 million jobs, new manufacturers like Nigeria, have not fully attained their economic capacity but are getting there. Caffeine plays an essential role in productivity within the real sector like the industrial, healthcare, ICT the education and other allied sectors. This study findings showed that caffeine withdrawal and restrictions caused productivity losses based on empirical evidence from Japan, the United Kingdom, and the United States revealing that it caused productivity declines, revenue losses, and disruptions in crucial sectors dependent on cognitive execution. Based on these findings, the study recommends that beverage manufacturers should reformulate high-caffeinated beverages into moderate or low-caffeinated beverages without compromising efficiency, taste and marketability.

Keywords: Caffeine; Energy drink; Methylxanthine. (search for similar items in EconPapers)
JEL-codes: H42 (search for similar items in EconPapers)
Date: 2025
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