Africa Energy Drinks Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Africa Energy Drinks Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The African Energy Drinks Market is projected to register a CAGR of 3.9% during the forecast period (2022 - 2027).

Covid has a significant influence on Africa's food and beverage industry. According to an article published by the Multidisciplinary Digital Publishing Institute (MDPI) titled "Analysis of the Impact of COVID-19 on the Food and Beverage Manufacturing Sector," COVID-19 caused a moderate decline in the flow of income in the African food and non-alcoholic beverage manufacturing sector (including energy drinks) by 10% to 30%. However, owing to various factors, value-added products, including energy drinks, are finding their way into the consumers' purchase baskets.

The African market is driven by the rising demand for convenience beverages and changing lifestyles, along with increasing income, sports activities, and urbanization. Thus, the demand for functional beverages 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.

However, rising concern over health issues associated with energy drinks, such as the high sugar content present in a few of the energy drinks, is likely to restrain the market growth.

Key Market TrendsIncreasing Expenditure On Advertisement And Promotional Activities

The primary reason for the popularity of energy drinks is directly related to the aggressive marketing campaigns, which are mainly directed toward young consumers. Furthermore, advertisements promote that energy drinks ignite the mind, refresh the body, and enhance performance and stamina. Companies are also focusing on market endorsements to promote their public image, and many famous personalities associated with brands are endorsing/promoting specific products along with event sponsorship to boost brand awareness. For Instance, Red Bull King of the Air, an international kiteboarding competition, was held in Cape Town in January 2020. In addition, to compete with market leaders, key players in soft drinks such as Pepsi and Coca-Cola also entered the energy drinks market, and these companies are intentionally spending more on the advertisement to compete with Red Bull, Rockstar, and Monster Energy drinks.

South Africa dominates the market

The Energy Drink market in South Africa is embracing a growth phase with new flavor formulations, reduced sugar and calories, and ingredients innovations such as botanicals and herbs. Thereby players in the market are launching new products in need with the consumer demand. For Coca-Cola, South Africa launched an energy drink called Coca-Cola Energy. The drink, available in a 300ml can, contains caffeine, guarana extracts, B vitamins, and no taurine. Additionally, with the expanding distribution channel like supermarkets, convenience stores, and e-commerce platforms, among others, sales of energy drinks are expected to grow at a significant rate during the study period.

Competitive Landscape

The Africa Energy Drinks market is consolidated with few global and regional players having major market shares. Emphasis is given to 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.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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