Energy Drinks in Kazakhstan

PROSPECTS

Negative image of energy drinks fails to restrain growth

Over the review period, negativity surrounding energy drinks in the mass media made consumers more cautious about these products. The mass media, referring to medical research, suggested that high levels of caffeine consumption cannot positively affect health and is especially dangerous when consumed with alcohol.

Young generation is target audience for energy drinks

Sales of energy drinks are mostly driven by the demand of younger consumers, particularly millennials. Manufacturers’ marketing campaigns are therefore usually aimed at students and young professionals who lead active lifestyles, like to party or have exams to prepare for.

Opportunity for the development of healthier products over the forecast period

Kazakhstanis are increasingly health conscious, which is encouraging them to pay stronger attention to the ingredients of the products they consume and try to reduce refined sugar in their diets. Such tendencies might trigger the demand for healthier energy drinks with less sugar, caffeine, and other artificial ingredients.

COMPETITIVE LANDSCAPE

Local players lead with their well-established and affordable products

Perviy Pivzavod TOO continued to lead energy drinks in 2019, closely followed by Riks TOO. The strong position of domestic manufacturers in the category is attributable to their well-established and affordable brands that have strong marketing support and good distribution across both traditional and modern grocery retailers, as well an on-trade.

Strong brand loyalty of affordable Gorilla and Dizzy Energy

In 2019, energy drinks that have a low- to mid-priced positioning held significant off-trade value share. Cheaper options such as the local brands Gorilla and Dizzy Energy are the clear leaders, so new and existing brands are unable to set a high price on energy drinks due to the strong price competition amongst manufacturers.

Manufacturers active with promotions in 2019

Energy drinks manufacturers actively promote their brands at social and public events, such as sports competitions, parties for young people and concerts. The leading Gorilla and Dizzy brands, for instance, sponsor various concerts and events, in addition to organising different contests with prizes.

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