Having exhibited their fastest rate of decline in a decade during 2020, there was a modest rebound in off-trade volume sales of energy drinks in 2021. 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.
Having plunged by more than a quarter in 2020, on-trade volume sales of energy drinks were little better than flat during 2021. The most obvious factor suppressing on-trade demand for energy drinks during 2020 was the government-mandated shutdown of the country’s entire hospitality industry for an extended period.
Thailand’s excise tax on sugary beverages came into force on 1 October 2019. This made sugar-laden energy drinks more expensive.
Off-trade volume sales of energy drinks will exhibit no more than modest growth during the forecast period as a whole. The third phase of the excise tax on sugary drinks, which was due to come into force in October 2021, has been postponed for a year in the light of the difficult economic climate, but when it is finally introduced, it will contribute to the shifting of demand within energy drinks to reduced sugar and sugar free offerings.
One of the most important trends in energy drinks during the forecast period is expected to be the rising importance of functional products. The 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.
With demand for energy drinks exhibiting increasing signs of maturity due to the growing perception among local consumers that these products are relatively unhealthy, manufacturers of these products are turning their attention to other types of soft drinks that are perceived as healthier and more natural, such as functional bottled water and high-vitamin juice drink. In particular, Carabao Group Plc and Osotspa Plc have recently expanded the range of products they offer to include 200% vitamin shots, and these have so far proven very popular among local consumers.
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These are functional drinks designed to boost energy levels. Often lightly carbonated, these contain high levels of caffeine and a number of added water-soluble vitamins, most often a selection of B vitamins including niacin, pantothenic acid, vitamin B6, and vitamin B12. Ingredients can also include amino acids such as taurine and glucuronolactone, as well as herbal products such as guarana and ginseng. Can be carbonated or still. Leading brands in off-trade volume include Red Bull, Monster and RockStar. Glucose-based energy beverages such as Lucozade Energy are included here.
This report originates from Passport, our Energy Drinks research and analysis database.
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