Energy Drinks in Thailand

PROSPECTS

Energy drinks weathers healthy living trend better than most categories

While the sugar tax and rising health-consciousness in Thailand had a negative influence on the performance of energy drinks in 2018, it recorded a much smaller decline in off-trade volume sales than most other soft drinks categories affected by the same factors. This was largely due to sustained demand among blue-collar workers in labour-intensive roles and those who drive for a living, as these groups regularly consume energy drinks for their stimulant effect.

Millennials become a new target group for energy drinks

Faced with increasing maturity and a relatively narrow core base, several players in energy drinks have recently sought to broaden the appeal of the category. For example, the latter part of the review period saw the introduction of a number of premium variants aimed at mid-to-high-income consumers who only purchase energy drinks occasionally.

Health set to be a focal point for innovation

The sugar tax implemented in Thailand in late 2017 is progressive, meaning the higher the sugar content of the product, the greater its tax burden. Moreover, the tax is due to be increased every two years until 2023.

COMPETITIVE LANDSCAPE

Osotspa remains the clear leader in 2018

Osotspa Co maintained a commanding lead in energy drinks in off-trade value terms in 2018. This was mainly due to the strength of its M-150 brand, though the company also offers the Shark and Magnum brands.

Carabao targets millennials with launch of Carabao CAN Green Apple

Carabao’s launch of Carabao CAN Green Apple in 2018 was backed by an aggressive marketing campaign that coincided with the FIFA World Cup. This campaign, entitled “Sawasdee World Cup, Get Lucky with Carabao”, saw the company give away cash prizes worth a total of THB3 million over the duration of the tournament.

Amway brand XS Zero enters energy drinks

Another notable launch in energy drinks in 2018 was that of XS Zero, which was introduced by Amway (Thailand) Ltd in September. Targeted at young adults with active lifestyles, this brand is packaged in a stylishly-designed metal beverage can and available in two flavours, Cranberry Grape Blast and Citrus Blast.

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