Energy Drinks in Estonia

2020 IMPACT

Energy drinks gets a boost in 2020, as popularity among younger consumers grows

Energy drinks recorded strong growth in off-trade current value and volume terms in 2020, with greater total volume sales than seen during the review period. This was despite plummeting on-trade performance as foodservice outlets and sports facilities closed during the COVID-19 pandemic.

Coca-Cola and Red Bull steal the limelight thanks to global recognition and heavy investment in promotional activities

Coca-Cola HBC Eesti AS continued to lead sales in energy drinks in Estonia in 2020, thanks to its Monster Energy brand. Red Bull GmbH’s eponymous brand ranked a close second, however, narrowing its main rival’s lead.

Leading players invest in new products to attract consumers

Players in energy drinks continue to focus on introducing innovative flavours in order to maintain consumer interest. For example, A Le Coq recently launched a new Dynami:t energy drink with coffee flavour, which contains natural caffeine as well as vitamins B6 and B12, pantothenic acid and biotin, while second-ranking player Red Bull recently introduced a new flavour for its Red Bull Summer Edition, Kiwi-Apple.

RECOVERY AND OPPORTUNITIES

Energy drinks will get a boost when on-trade outlets reopen, but unhealthy image poses a serious challenge

Post-COVID 19, bars, clubs and sporting facilities will reopen, and local consumers are likely to want to experience the enjoyment these venues offer, which will result in much stronger on-trade volume growth in energy drinks than was seen during the review period. However, the deepening health and wellness trend will present a serious challenge to this category, whose products are often high in sugar and have unhealthy reputations.

Energy drinks continue to be heavily promoted to younger people

A growing range of products along with rising purchasing power will contribute to further growth in energy drinks in Estonia over the forecast period. There is also potential to develop energy drinks that respond to the health and wellness trend by lowering sugar levels, and brands associated with sport activities will likely blur the distinction between energy drinks and sports drinks.

Scope for local players to meet demand for healthier energy drinks

Although energy drinks players in Estonia have strong, well-known brands with established positions, some smaller niche producers may appear as a result of concerns over the likely introduction of a sugar tax in the country. The growing image of energy drinks as potentially harmful offers new players the potential to develop healthier energy drinks for young consumers, who tend to be the target audience for these types of soft drinks.