Energy Drinks in Ireland

2020 IMPACT

Lockdown restrictions limit sales of energy drinks in 2020 as socialising is limited

A decrease in young people going out socializing due to COVID-19 has led to a smaller incline in growth relative to other soft drink products. Energy drinks are a very popular mixer for Irish drinkers, and as such the category will continue to see good performance in the on-trade.

E-commerce sales surge in 2020 due to COVID-19

E-Commerce saw a steep increase in sales due to COVID-19 in 2020, particularly during the lockdown period when a number of stores were closed and consumers sought to avoid visiting busy shops so as not to spread the virus. Big brands in particular latched onto this trend towards digital shopping, becoming increasingly active on social media and digital marketing.

Red Bull stays ahead with new product launch

The negative publicity surrounding energy drinks ensured that new product launches are reflective of the regulatory environment. In the wake of the sugar tax, all the leading manufacturers in the category have introduced lower sugar variants of their most popular brands.

RECOVERY AND OPPORTUNITIES

On-trade recovery likely to be slow in early forecast period, as younger consumers face lower disposable incomes

On-trade recovery could take until the end of the forecast period to return to pre-COVID-19 levels, as many consumers face financial difficulties and lower disposable incomes. The younger generations, in particular 18-25-years-olds, have been worst hit economically by the lockdown and as a result are expected to visit the on-trade less frequently.

Low sugar energy drinks will become increasingly important into the forecast period

Low sugar varieties are expected to perform increasingly strongly over the forecast period as the full sugar variants see significant increases in price due to the recently introduced sugar tax. Younger consumers, who usually have less disposable income, are the target market for the products, providing a strong incentive for companies to cut out the expensive ingredient.

Caffeine in the crosshairs

Sugar is not the only ingredient under the microscope in soft drinks. The Irish health authorities have separately targeted caffeine consumption as a serious issue for public health.