Energy Drinks in Hungary

PROSPECTS

Energy boosting drinks in demand due to hectic lifestyles

Ongoing popularity and growing consumption of energy drinks is ensured as modern, fast-paced lifestyles continued to grow in Hungary, with demand from both younger and older demographics. Energy drinks is increasingly perceived as a modernised version of coffee for some Hungarians, due to its convenience and speed of consumption.

Increasing taxation on energy drinks unlikely to affect expansion

In 2018, the government announced there would be an increase in the public health tax on most affected categories, including energy drinks. The tax, which had not changed since 2013, was raised by 20% on energy drinks starting January 2019.

Presence of energy drinks on-trade remains weak

Energy drinks are typically purchased off-trade in Hungary. Young people often pass by a grocery retailer before or after school and one of the favourite items purchased is energy drinks.

COMPETITIVE LANDSCAPE

Successful competitive strategies are based on strong in-store brand presence

Leading manufacturers Hell Energy and Coca-Cola followed similar growth strategies in 2018. Both companies place great emphasis on having full displays of their expanding product ranges in every possible channel, including convenience stores and independent small grocers and even at larger traffic tobacco specialists.

Energy drinks distribution more diversified than other soft drinks

Energy drinks are being sought 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 far greater than in the case of other soft drinks.

New brands and health and wellness variants influence innovation

One of the most characteristic new products launched in 2018 was Skybaby, which was based on the idea of the founder of the largest bottled water player Szentkirályi-Kékkúti Ásványvíz, utilising its marketing experience. Its new, fashionable energy drink targets international success with its striking design and special recipe.

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