Energy drinks experienced negative growth in both the on-trade and off-trade channels during 2020 and one of the major reasons for this was the adverse economic situation that emerged from the COVID-19 pandemic. The economic uncertainty that held sway for much of 2020 had a negative impact on the ability of many Thai people to generate income, with circumspect spending behaviours emerging as a result.
On-trade sales of energy drinks fell off a cliff during 2020 as the negative impact of the COVID-19 pandemic on Thailand’s consumer foodservice industry narrowed on-trade consumption occasions for energy drinks to vanishing point. Much of the consumption of energy drinks in Thailand takes place in late night bars, nightclubs and discotheques, with foreign tourists prominent among the revellers in these venues.
Thailand’s new excise tax that applies to sugary beverages came into force on 1 October 2019. This new tax made sugar-laden energy drinks more expensive than they had been previously, placing consumption levels under threat.
One of the most important trends in energy drinks during the forecast period is expected to be the rising importance of functional product in the category. The COVID-19 pandemic has undoubtedly strengthened the health and wellness trend in the country as Thai people are becoming increasingly serious about the health and wellness credentials of the food and drink that they consume.
The general positioning of energy drinks as products that provide a quick and strong energy boost is quite unique in soft drinks, meaning that the category faces fairly limited competition from other categories of soft drinks. However, it does leave the category open to competition from products positioned in other consumer goods industries.
Although demand for premium soft drinks brands came under severe pressure due to the COVID-19 during 2020, is expected that the forecast period will see the leading premium brands of energy drinks gain ground as the recovery of Thailand’s economy will result in demand for premium soft drinks increasing. Among the more expensive brands that have the potential to generate stronger growth over the forecast period are Ready Boott, Shark, Warrior and Kratingdaeng G2/G3, all of which are betting on the expansion of demand for higher-priced premium soft drink brands during the forecast period.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Energy Drinks industry in Thailand with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Energy Drinks industry in Thailand, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Energy Drinks research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page