Thailand’s massive Bt 20 billion (US$535.2 million) energy drink market is back to full gear again as competition starts to heat up.
In the first half of 2022, many new brands were launched into the market, focusing largely on the premium segment and the Gen Z consumers. Currently, the premium energy category contributed 21% to the overall energy drinks market in Thailand and has been identified as one with the highest growth potential.
Several new product launches to invigorate the Thai market include Suntory Pepsico’s Rockstar brand as well as G-Beat energy drink from G-Beat The World Co. Rockstar is a premium alternative for the working class consumers that are looking for low-sugar beverages, while G-Beat targets the 18-35 year old consumers who enjoyed e-gaming and remain digitally connected most of the time.
According to Saravoot Yoovidhya, CEO of TCP Group, “The overall energy drink market grew by 3% year-on-year between January and July this year despite the tough time during the Covid-19 pandemic. This reflects that there is still demand for energy drinks in the Thai market and it has a huge opportunity to grow in the future. Saravoot expects the market to grow by 10% in 2022 after recording flat growth in 2020-2021, led by the premium energy category where 50% of the consumers belong to the Gen Z group.
To capitalise on this trend, TCP Group, the manufacturer of world-renown Kratingdaeng, Red Bull and Ready, had partnered with Mondelez International, the Halls candy producer, to launch Red Bull Halls XS energy drink, as it seeks to capture the Gen Z consumers.
Energy drinks producers are also increasing their advertising spend in 2022 by engaging celebrities as well as investing in social media and other media channels to reach out to this new consumer group.
