Energy Drinks in Estonia

PROSPECTS

Energy drinks maintains a positive performance

Despite the heavy scrutiny energy drinks historically received, with concerns surrounding teenagers consuming high volumes of energy drinks and people in Estonia resorting to energy drinks too often (including using them 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 are heavily promoted amongst younger people

Energy drinks are being strongly promoted in Estonia, and one of the main target groups is younger people. For example, many of the leading energy drinks brands sponsor different extreme sports events or concerts.

The impact of a possible sugar tax remains unclear

As no sugar tax was imposed in 2018, and there is no 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. 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

Red Bull leads energy drinks in Estonia

The pioneer in energy drinks, the multinational Red Bull, led in off-trade value terms in 2018, as it enjoys extremely high brand awareness and is preferred by many consumers due to its recognisable taste and quality. In addition, the company invests significant amounts in marketing activities and also introduces new launches to the market on a regular basis.

New product developments by the main producers

The leader in energy drinks, Red Bull, introduced a new flavour to the Red Bull Summer Edition, Kiwi-Apple. The domestic company A Le Coq launched a new product under its brand Dynami:t, White Energy with pineapple-coconut flavour, containing vitamin B and biotin in addition to caffeine and taurine.

A favourable market for niche producers

Despite Estonia having 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 the influence from the sugar tax discussion. In addition, further pressure will be seen from the increasing image of energy drinks as harmful and unhealthy.

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