The negative effect on domestic sales (particularly the off-trade) of the resumption of cross-border trade in 2022 and 2023 is expected to continue impacting demand over the forecast period. Nevertheless, sales of energy drinks will likely continue to benefit from strong positive drivers in the form of high consumer demand for energising drinks, which is set to sustain dynamic, albeit decelerated growth compared to the review period, for 2023 and beyond.
The market is likely to continue benefiting from the entry of new brands and new novelties with consumers often keen to experiment with new flavours, while limited edition products and packaging have also proven hugely successful. Nonetheless, it is likely that the well-established leading brands will maintain their dominance having built up a loyal following through successful marketing.
Supermarkets and discounters will likely remain the most important distribution channels for energy drinks over the forecast period with this reflecting overall spending behaviour, with these being the places that most consumers do their weekly grocery shopping. Nonetheless, with the pandemic over and consumers returning to more active lives away from the home this is likely to benefit sales through convenience stores, forecourt retailers and small local grocers with these catering to the demand for impulse and on-the-go purchases.
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These are functional drinks designed to boost energy levels. Often lightly carbonated, these contain high levels of caffeine and a number of added water-soluble vitamins, most often a selection of B vitamins including niacin, pantothenic acid, vitamin B6, and vitamin B12. Ingredients can also include amino acids such as taurine and glucuronolactone, as well as herbal products such as guarana and ginseng. Can be carbonated or still. Leading brands in off-trade volume include Red Bull, Monster and RockStar. Glucose-based energy beverages such as Lucozade Energy are included here.See All of Our Definitions
This report originates from Passport, our Energy Drinks research and analysis database.
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