Energy Drinks in Egypt

2020 IMPACT

Consumers prioritise spending during the COVID-19 as impulse consumption falls

During the COVID-19 pandemic, consumers in Egypt focussed more on essential purchases, which hindered growth in energy drinks somewhat. Although retail volume growth increased in 2020, following negative growth rates at the end of the review period, growth was constrained by the premium positioning of products in energy drinks in 2020.

Sting introduces new, affordable energy drink to increase consumer base

In 2020, a new energy drink brand was launched in Egypt called Sting. This new brand is positioned as a more affordable product with the aim of reaching a wider consumer base and raising awareness of products in energy drinks in the country.

Red Bull introduces new flavours to attract new customers

Red Bull GmbH continued to dominate energy drinks in 2020 in terms of off-trade volume and value, through its well-established, global offering, Red Bull. This is mainly due to distribution of Red Bull being widespread, and its extensive marketing campaigns, including sponsorship of events and music festivals.

RECOVERY AND OPPORTUNITIES

Category stabilises in the aftermath of COVID-19 as consumer foodservice reopens

Over the forecast period, energy drinks is expected to recover from the impact of the COVID-19 pandemic. In 2021, off-trade demand is expected to decline slightly, and on-trade volume sales are projected to record strong growth, reversing the shift to retail during the COVID-19 pandemic as consumer foodservice outlets reopen to full capacity.

Energy drinks invest in online advertising to expand consumer base in Egypt

Over the forecast period, the leading companies in energy drinks are expected to continue to invest in marketing and advertising through digital platforms in order to attract more customers in the middle income consumer base in Egypt. The category has seen a high level of investment in online advertising in recent years, as companies collaborate with influencers and streamers throughout Egypt, and this trend is expected to continue over the forecast period as consumers in Egypt become increasingly well connected through devices and social media.

Westernisation trends stimulate growth whilst health and wellness trends hamper growth

The Westernisation trend is gaining momentum amongst younger consumers in Egypt and will continue to do so over the forecast period, leading to a growth in sales of imported products that are popular in Western markets. Marketing campaigns tend to position energy drinks with fast-moving, adventurous lifestyles that younger consumers aspire to, and this advertising trend will continue to appeal to young consumers in Egypt.