Energy Drinks in Hungary

PROSPECTS

Energy drinks continues delivering healthy growth, backed by strong company activity

Energy drink sales continued to post stronger than expected growth in 2019. The ongoing popularity and growing consumption of energy drinks is in part due to the continued increase in modern, fast-paced lifestyles in Hungary, with demand from both younger and older demographics.

Health trends still having more of a positive than a negative effect on energy drinks

Health and wellness trends are having a growing influence on energy drinks, with this helping to drive sales as health-conscious consumers can increasingly find alternative energising ingredients instead of caffeine, natural sweeteners and zero-sugar variants. Migration from regular towards reduced-sugar energy drinks will continue, and growing demand for low-sugar, healthy beverages will drive innovation and new product development towards variants with alternative healthy energising ingredients (herbs, tea extracts etc), spreading the use of natural sweeteners (stevia).

Presence of energy drinks remains weak in the on-trade

On-trade development of energy drinks is slower, as off-trade purchases at lower retail prices continue to hinder on-trade sales. In Hungary young party-goers typically purchase energy drinks before and after parties, at convenience stores or forecourt retailers that are open all night.

COMPETITIVE LANDSCAPE

Coca-Cola has another go at launching the Coca-Cola Energy line in Hungary

Coca-Cola HBC Hungary launched the first products under the Coca-Cola Energy line in spring 2019. A previous launch attempt a few years ago had proved to be unsuccessful.

Hell Energy’s expanded production facilities will serve both the domestic and export markets

Hell Energy Magyarország expanded its production facilities in 2019, enabling it to increase its production of canned soft drinks, including energy drinks. The government was providing financial support in this project for the largest local soft drinks manufacturer, which is also increasing its export capacity.

Energy drinks distribution more diversified than other soft drinks

Energy drinks are being bought through a wide variety of channels as on-the-go consumers seek to gain an energy boost during the day. The role of smaller channels is slowly declining due to the growing diversification and the price advantage of larger modern grocery retailers, but is still more important than for other soft drinks.

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