Energy Drinks in Kazakhstan

PROSPECTS

Negative image of energy drinks fails to restrain growth

Over the review period, negative propaganda 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

Most energy drinks players target a younger audience in Kazakhstan. The marketing campaigns are usually aimed at students and young professionals who lead active lifestyles.

Opportunity in the development of low-sugar variants

Kazakhstanis are gradually becoming health conscious, which is encouraging them to pay stronger attention to the ingredients of the products they consume, and try to reduced refined sugar in their diets. Such tendencies might trigger the demand for healthier energy drinks, which would initially be to reduce the sugar content.

COMPETITIVE LANDSCAPE

International brands lose share to locals

Energy drinks in Kazakhstan remained strongly consolidated in 2018, dominated by the combined off-trade value share of strong local players Perviy Pivzavod TOO and Riks TOO. The strong presence of local players is explained by their rather aggressive price offerings, well-known and strongly established brands and expansive presence in modern retailers and on-trade.

Expansion of affordable brands

In 2018, 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 dominated.

Strong advertising and promotions in 2018

Manufacturers of energy drinks recorded intensified marketing campaigns in 2018. Monster Energy from Monster Beverage Corp launched separate large shelves and refrigerators in many grocery retailers in 2018, in an attempt to regain sales, although it continued to lose strong off-trade value and volume share.

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