Energy drinks is the only category of soft drinks in Morocco in which on-trade sales outnumber off-trade sales. For this reason, the difficulties faced by Morocco’s consumer foodservice industry during 2020 hit sales of energy drinks particularly hard.
One major factor working against energy drinks during 2020 was the non-essential status of these products. This meant that consumers were easily able to justify avoiding spending money on them as their household incomes came under pressure due to the COVID-19 pandemic.
In addition to the extended shutdown of the entire hospitality industry and the generally strict approach taken to social distancing, another factor placing pressure on on-trade sales of energy drinks during 2020 was the absence of foreign tourists from Morocco’s major cities and leading tourist resorts. Morocco’s borders were closed to foreign visitors for much of the year as a key measure for controlling the spread of the COVID-19 virus, while flights on key international routes were cancelled due to a lack of demand, the outcome of the major challenges faced by the global travel and tourism industry in the face of the COVID-19 pandemic.
Positive growth is expected to be seen in sales of energy drinks during the forecast period. Central to this strong recovery from the sales declines recorded during 2020 is set to be the reopening of Morocco’s late-night bars and nightclubs and the diminishing fear of contagion among the population.
One of the key factors suppressing demand for energy drinks during 2020 is that these products are widely regarded as expensive and non-essential, with the entire category thus having a rather premium positioning. This counted against it as a far more rational approach to consumer spending emerged as household income levels dipped substantially over the course of 2020 due to the COVID-19 crisis.
As mentioned above, foreign tourists have traditionally accounted for a relatively high proportion of energy drink sales in Morocco, especially in the on-trade. Thus, the eventual reopening of Morocco’s borders to foreign visitors, which is expected to be seen at some point during 2021, will inevitably have a positive impact on category sales.
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This report originates from Passport, our Energy Drinks research and analysis database.
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