Most energy drinks in Indonesia are still sold at small kiosks/warungs located in public transport terminals, with consumers tending to be people looking for an on-the-go energy boost. Therefore, the much lower footfall in bus terminals and train stations in 2020 as a result of the government’s social distancing measures to tackle COVID-19 has had a very negative impact on the category.
Kino Indonesia Tbk PT is likely to post the highest increase in off-trade volume sales share in 2020 even though its sales are falling along with those of other players. Compared with leading brands such as Kratingdaeng and M-150, Kino’s Panther energy drink has better product availability in traditional sales channels, which have not been subject to as many operating challenges as modern channels during the pandemic, while Panther’s variant in plastic cup packaging has a much lower price, which is driving its popularity among the lower-income segment.
Cup packs continued to perform well in energy drinks in 2020. These packs are typically cheaper than bottles or cans, which increases their appeal for lower-income consumers, especially as disposable incomes fall owing to job losses and reductions in working hours related to COVID-19.
Energy drinks is expected to continue to see some challenges as, even before the COVID-19 pandemic, this category has experienced a sharp decline in sales since the enactment of the ban on sales of alcoholic drinks in convenience stores, since some energy drinks are often bought as mixers for alcoholic beverages. However, in 2021, some recovery is expected from the impact of the pandemic, especially with social distancing measures being eased and travel/economic activities starting to normalise as demand for example from bus/truck drivers and people who are travelling is likely to increase again.
More economical energy drinks are likely to keep pushing volume growth in retail, for example those in cup packaging, as most drivers look for cheaper products, especially as purchasing power dips as a result of COVID-19’s impact on the local economy. New lower-priced products may also be launched in the forecast period.
Despite the growing influence of the health and wellness trend, energy drinks retain a broad appeal among lower-income consumers in Indonesia. In particular, they are commonly consumed for their stimulant effect by lower-income adult males employed in jobs that are physically demanding or involve long hours, including manual labourers, professional drivers and shift workers.
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Understand the latest market trends and future growth opportunities for the Energy Drinks industry in Indonesia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Energy Drinks research and analysis database.
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