Energy Drinks in Estonia

PROSPECTS

Strong promotion and pace of modern life fuel energy drinks sales

Despite strong concerns regarding over consumption of energy drinks, especially among younger people (including use as mixers for alcoholic cocktails), the category has maintained steady growth. This can largely be attributed to strong promotional activities and hectic lifestyles as Estonians often purchase energy drinks for an extra energy boost during a long day.

Energy drinks continue to be heavily promoted to younger people

Nevertheless, energy drinks continues to develop, with the growing range of available products, together with rising purchasing power, contributing to further growth. There is also potential to develop energy drinks that respond to the health and wellness trend by lowering sugar levels, as well as brands associated with sport activities blurring the border between energy drinks and sport drinks.

Continued uncertainty over potential sugar tax

As no sugar tax has been imposed yet and there is no currently clarity as to whether or not such a tax will be implemented in the coming years, sales in the category have not been affected, even though this is expected to happen eventually. If the Estonian government does reach a decision in the near future, it is likely that sales of energy drinks will decline in volume terms as the tax would result in price increases.

COMPETITIVE LANDSCAPE

Strong marketing ensures Red Bull and Coca-Cola dominate

Red Bull and Coca-Cola HBC Eesti continue to dominate sales within energy drinks in Estonia, with the two companies being well-known for their respective Red Bull and Monster Energy brands. The pioneer in energy drinks, multinational player Red Bull, led off-trade value sales in 2019 as it enjoys extremely high brand awareness and is preferred by many consumers due to its recognisable taste and quality.

Leading players investing in new products to attract consumers

Producers continue to focus on introducing new 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 coffee and natural caffeine, as well as vitamins B6 and B12, pantothenic acid and biotin.

Scope for local players to meet demand for healthier energy drinks

Although Estonia has strong and well-known brands with established positions in energy drinks, it is possible that, over the forecast period, some smaller niche producers will appear as the category is shifting due to concerns over the likely introduction of a sugar tax. In addition, further pressure will be seen from the growing image of energy drinks as being harmful and unhealthy.

Files are delivered directly into your account within a few minutes of purchase.