Africa Energy Drinks Market - Growth, Trends And Forecast (2020 - 2025)
The Africa Energy Drinks Market is projected to register a CAGR of 3.9%, during the forecast period (2020 - 2025).
- The African market is driven by the rising demand for convenience beverages and changing lifestyles, along with increasing income, sports activities, and urbanization. The region is witnessed with an increased number of consumers who are primarily concerned about their health, due to the increasing cost of healthcare facilities. Thus, the demand for the nutritive beverage in the form of drinks and mixers is expected to augment the growth of the market studied. Furthermore, to attract new consumers to the category, many players are investing in fruit-flavored energy drinks, especially those more familiar to the African population. For instance, in 2019, The Coca Cola Company launched its own energy drink- ENERGY in South Africa, which is available in 300ml cans.
- However, rising concern over health issue associated with energy drink such as various psychiatric disorders including major depression, generalized anxiety disorder, panic disorder, alcohol dependence, and cannabis and cocaine abuse/dependence due to the higher caffeine intake present in few of the energy drinks is likely to restrain the market growth.
Key Market Trends
Increasing Expenditure On Advertisement And Promotional Activities
The primary reason for the popularity of energy drink is directly related to the aggressive marketing campaigns, which are mainly directed toward young consumers. Furthermore, advertisements are promoting that energy drinks ignite the mind, refresh the body, and enhance performance and stamina. For instance, Monster’s expenditure on advertisement and promotion increased with a 14% growth rate during the time period 2016 to 2018. Apart from promotional expenditure, endorsement, and sponsorship also influencing market growth. In addition, to compete with market leaders, key players in soft drinks such as Pepsi and Coca-Cola also entered in energy drinks market and these companies are intentionally spending more on the advertisement to compete with Red Bull, Rockstar, and Monster Energy drinks. Therefore, growing advertisement and promotional activities is boosting the demand for energy drinks from different consumer groups.
High Demand From The Millennial Population
Health attributes are most important to the millennial population in Africa, who are willing to pay a premium for health benefits in a product, with the growth of simpler, cleaner, and free from labels energy drinks products, as an indicator of a more natural product. The increase in the awareness related to maintaining a healthy lifestyle among the young African consumers is making them increasingly health-conscious, particularly of the food or beverage they're consuming, driving a forceful demand for energy drinks to meet their needs. The developing health and wellness market in Africa is expected to compel beverage brands to create products that have more than one quality in their product offerings. For example, energy drinks serve the energy, nutrition and hydration needs of consumers. Furthermore, there is an increase in the demand for energy drinks, primarily due to the inclusion of stimulants, natural ingredients, and additives, which are commonly used in most gyms. Rising health awareness, increasing subscriptions to the gym and other fitness clubs are expected to drive the growth of the market studied.
The Africa Enrergy Drinks market is consolidated with few global and regional players having major market shares. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Key players dominating the regional market include Monster Beverage Corporation, Red Bull, The Coca-Cola Company, Campbell Soup Co., and Rockstar, Inc. among others.
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