Thailand's 20 billion baht energy drink market is becoming active again, with fiercer competition anticipated.
In the first half of this year, many new brands were launched into the market, focusing largely on the premium segment and customers from Gen Z.
Among these were Suntory PepsiCo Beverage (Thailand), a manufacturer and distributor of beverages, which introduced its Rockstar brand to the market in August as well as G-Beat The World Co, which rolled out G-Beat energy drink at 7-Eleven convenience stores in July and via the online channel.
Moreover, several new entrepreneurs also introduced their new premium energy drink products to the market at the Thaifex-Anuga Asia 2022, touted as Asia's largest food and beverage trade show.
The premium energy drink segment currently accounts for 21% of Thailand's energy drink market.
"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,'' said Saravoot Yoovidhya, chief executive of TCP Group.
He expects the overall energy drink market to grow by 10% this year after flat growth during 2020-2021, driven by the premium energy drink segment where 50% of customers are Gen Z.
In a move to capitalise on the trend, TCP Group, the manufacturer and seller of Kratingdaeng, Red Bull and Ready, has teamed up with Mondelez International (Thailand) Co, the producer of Halls candy, to launch the Red Bull Halls XS energy drink, targeting Gen Z consumers.
It will spend over 100 million baht to create product awareness among the new generation nationwide through TikTok and e-sports marketing as part of the company's "Fulfilling – Energizing our brand" pillar.
Meanwhile, Ashish Joshi, chief executive of Suntory PepsiCo Beverage (Thailand) Co, said the company launched the Rockstar premium energy drink in the Thai market in early August to respond to the growing demand from a new generation of working consumers who are looking for an energy drink that can respond to their needs in terms of modernity.
Rockstar is aimed at fulfilling its beverage product portfolio, an alternative for consumers who are looking for sugar-free or low-sugar beverages and to expand a new customer base, he said.
Nopmanus Sungkasap, chief marketing officer of G-Beat The World Co, said G-Beat targets consumers aged 18-35 who love e-sports or playing or streaming games with digital lifestyle consumers.
It expects to gain a 10% share of the premium market in 2022. The G-Beat energy drink has hired Supassara "Kao" Thanachat and Jirayut "Tao" Phaloprakarn as presenters.