Energy Drinks in Sweden

2020 IMPACT

Energy drink sales suffer as on-the-go consumption declines, with many consumers viewing the product as unessential

Although regulations and limitations were not as strict in Sweden as in neighbouring countries, and on-trade facilities remained open to the public, on-trade volume and value growth is predicted to record a double-digit decline in 2020. Many consumers remained wary of socialising in public, specifically in crowded bars and clubs where energy drinks may have been sold.

Players launch and focus on new product developments, despite the outbreak of COVID-19

Despite the outbreak of COVID-19 in 2020, many players continued with planned launches of new products, focusing on extension ranges. Energy drinks sales are largely driven by new edition launches, with some players estimating that editions drive up to 50% of all sales.

Red Bull loses share as consumers trade down to cheaper options

Red Bull is set to retain its lead of the landscape in 2020, offering both Red Bull and Red Bull Zero. However, despite its lead, Red Bull is third and fourth-placed on the brand landscape, and in 2020, the high-price points of the player will lead to a double-digit decline in growth for Red Bull, with share lost.

RECOVERY AND OPPORTUNITIES

Sales recover from 2021, as energy drinks records a strong performance over the forecast period

With consumers confident to socialise in public once more, on-trade sales of energy drinks are expected to recover from 2021, when both on-trade value and on-trade volume will record double-digit growth. On-trade sales will continue to be positive across the forecast period, leaving to an on-trade value CAGR of 8%.

Regulations on the caffeine content allowed in energy drinks would shake up the landscape

Caffeine is not a controlled substance in Sweden; however, there have been debates on introducing regulations for the use of high caffeine products, such as energy drinks. Players have reportedly stated in the past that they believe it will be an ongoing debate and that The Swedish Health Ministry will take no action; however, other industry experts expect regulations to come into force, similar to what is in place in Norway.

Energy drinks blur with other soft drinks across the forecast period

Across the forecast period, energy drinks is expected to continue to blur with general soft drinks categories, such as carbonates. For example, Coca-Cola Energy was launched by Coca-Cola Enterprises Sverige AB in 2020, offering an energy drink with the same taste and flavour as a soft drink.