Energy Drinks in Egypt

PROSPECTS

Energy drinks are targeted at younger consumers, promoted to them at social occasions and events

Energy drinks continue to be popular in the Egyptian market, especially among teenagers and young adults, with younger consumers in Egypt often being more connected to global trends, and adopting a more westernised lifestyle. High prices and ongoing inflation, although not as severe as during the review period, is still having an impact on purchasing power, which often hits energy drinks core audience of younger consumers, who may have a limited budget.

Westernisation positively impacts sales of energy drinks as younger consumers emulate global trends

Current value growth was positive in 2019, with several trends driving this growth in Egypt. The Westernisation trend is gaining momentum amongst younger consumers, leading to a growth in sales of imported products that are popular in Western markets.

Health and wellness is a potential threat to the growth of energy drinks

Whereas being connected to global and Western trends is positive for energy drinks, another global trend that is sweeping Egypt is the health and wellness trend. The health and wellness trend sees a growing amount of consumers looking for healthier food or drink options.

COMPETITIVE LANDSCAPE

Red Bull GmbH retains its lead distribution, which includes its sugar-free variant

Red Bull GmbH dominates energy drinks 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.

Red Bull competed through active marketing that includes sponsor of events relevant to younger consumers

Red Bull has very active marketing, ranging from sponsoring and organising events. This sponsorship includes battle-of-the-bands event Soundclash, with Red Bull visible at events such as this, that younger people consider to be fashionable and relevant.

To drive values sales, energy drinks distribution focuses on places where consumers impulse buy

Energy drinks are found in most distribution channels, along with other soft drinks; however, they are particularly important in channels where consumers impulse buy. Street kiosks and forecourt retailers are the main focus of distribution of energy drinks.

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