Energy Drinks in Kazakhstan

2020 IMPACT

Changing positioning of energy drinks outweighs negative media coverage

In 2020, energy drinks is continuing to change its product positioning, with manufacturers aiming to associate the product with appealing taste and positive emotions, similar to carbonates. Historically energy drinks have been consumed to boost energy levels as well as used as an ingredient in cocktails.

Increasing interest in new tastes and experiences infiltrating energy drinks

In 2020, consumers continued to gradually shift from the classic, traditional tastes of energy drinks to trying new flavours and tastes. Across many categories there is strong demand for new consumption experiences and during the uncertainty created by COVID-19, many consumers will seek to treat themselves or seek products that will allow them to have positive consumable experiences at home.

Independent small grocers and e-commerce experience greater demand

Independent small grocers and e-commerce retailers will see strengthened positioning in energy drinks in 2020. Consumers tended to opt for local independent small grocers to avoid spending extended time outside the house; e-commerce was used to eliminate some shopping trips and enjoy the convenience of home delivery.

RECOVERY AND OPPORTUNITIES

Reduced disposable income forces companies to offer budget-friendly products

Over the forecast period, the affordability of energy drinks will be one of the most important factors in consumer purchasing decisions. The economic crisis caused by COVID-19 decreased the purchasing power of many Kazakhstani consumers and will force manufacturers to offer wider product ranges at low-end prices as well as discounts and special offers to remain competitive.

Opportunity for the development of healthier products over the forecast period

Kazakhstanis are set to become increasingly health conscious, particularly in the aftermath of COVID-19. This will lead towards mindful consumption and a stronger interest in the ingredients of the products they consume.

Energy drinks set to see most dynamic growth through targeted marketing

Energy drinks is expected to be the most dynamic soft drinks category over the forecast period thanks to the popular carbonated and sweet flavours, energy boosting features, and widespread marketing campaigns that target consumers of different age groups and disposable incomes. The key consumer group for the category is younger consumers, particularly millennials.