Even energy drinks are a product that costs only 10 baht per bottle and in the past, 3 big operators have gradually invested in marketing activities in various forms continuously. with an important goal to increase sales and seize a large cake that is estimated to have at least 30 billion baht to occupy including creating market growth But the aftermath of the re-emergence of COVID-19 In the past that has become more intense As a result, all camps have reduced sales and have to adjust to deal with hard.
Covid smashed sales – market fell
Mrs. Wannipa Phakdibutr Chief Executive Officer of Osotspa Public Company Limited, a manufacturer and distributor of energy drinks M-150, revealed “Prachachat Business” that admits that this year is quite a challenging year for the energy drink market. especially the factors caused by the COVID-19 situation a new wave of outbreaks (wave 3), which is more intense and faster than before affecting the economy and the energy drink market as a whole from lockdown measures in many provinces
suspending various construction activities or reducing the sales time of retail stores Closing of some distribution centers or even a number of retailers who decide to close their stores to reduce the risk of infection. All of these factors have a direct impact on energy drinks, along with the impact of lower income and consumer purchasing power.
In the past, the company has adjusted its working style, especially to reach consumers and stores better than ever. to help partners to distribute products directly to retailers This helps to reduce the problem of transportation interruption and shortage of goods.
from the easing of the Covid situation and the economic condition that tends to gradually recover will have a positive effect on the energy drink market But this is likely to be a slow recovery and even the construction and real estate halts. Impact on energy drinks to some extent. But now the situation has returned to normal.
In the past, even energy drinks have been affected by the economic crisis and COVID-19. But the herbal drink trend continues to grow. Especially ginseng and black galingale drinks. In addition, from the Ministry of Public Health has unlocked Kratom from the drug list. Initially, the company is in the process of studying information about consumers and related laws in order to produce products.
Because this is another new opportunity for a new beverage segment. That helps create marketing opportunities and more sales.
Meanwhile, news reports from Osotspa Company indicate that during the third quarter, domestic beverage sales decreased by 11.1% (YOY), which was a smaller contraction than the overall market. The drop in revenue was a result of lockdown measures to contain the spread of the COVID-19 virus. that affect the purchasing power of consumers promotional activities and distribution
However, Osotspa is currently the market leader with a market share of 54.5 percent from a total market value of 35 billion baht, with the M-150 is the main business driver In the third quarter, the company’s market share increased by 0.6% (YOY), although the energy drink market shrank by 16.3% (YOY).
Strong herbal drink does not fall.
side Mrs. Prapaiphak Wigel Director of Global Marketing (F&B), TCP Business Group or T.C. Pharmaceutical Industries Co., Ltd., a manufacturer and distributor of Red Bull beverages, Ginseng Plus, etc., said the same thing. This year, the total market value of energy drinks is still at 20,000 million baht, which is in a contraction of about 7% due to the impact of the Covid-19 epidemic and the lockdown that makes its main target customers, such as labor users who Some of them had to stop working and thus consume less. while farmers were affected by the decline in agricultural products. damaged output including a fragile economy that makes consumers more cautious about their spending
Closing of labor camps to curb the spread of coronavirus Only slightly affects energy drinks. As it is for a short period of time, consumption is reversible once the business is up and running. As for the withdrawal of kratom leaves from the drug list does not affect much Because consumption is not widespread. and has limitations in terms of product development and is also a retail trade
However, from the strong trend of ginseng herbs and the trend to continue to grow With changing consumer lifestyles and turning to health-conscious, recently, the company has launched Ginseng Plus Super, a herbal energy drink (Korean ginseng, black galingale, and lingzhi) that is a continuation of the Ginseng Plus drink. that has been well received by the market To support the needs and trends in health that occur, however, the market is expected to be active again. After the economy began to recover Due to the situation of Covid-19 getting better
As well as news reports from Carabao Group Public Company Limited revealed that in the third quarter of the past year, the domestic energy drink market in quantity shrank 15.2% compared to the previous year. Meanwhile, sales revenue from Carabao Dang decreased by 10.5% compared to the previous year. And the quantitative market share of Carabao Dang beverage was 20.7%, a slight decrease from 21.0% in the previous quarter. but is still number 2 in the market
The main factor is the result of the COVID-19 virus. that came back to spread more severe The government therefore issued strict lockdown measures for almost 2 months, resulting in a decrease in economic activity. and consumer confidence index
The trend of fierce competition
Reporters reported that Even though the overall market outlook has been negative in the past But the three major players continue to push out promotions to stimulate the market continuously. In particular, organizing activities through online media such as M-150, M Point Promotion, giving away cars all over Thailand 3 with red pickup trucks, motorcycles, gold and many other prizes, more than 50,000 prizes, totaling more than 5 million baht and promotions. Reduce the purchase price of 2 bottles of M-150 for only 18 baht (from normal price 20 baht) until 23 Dec 2021 only.
Just like Carabao Daeng that took “Coupon Bao wins” For consumers to join in the fun by sending a number under the cover, a chance to shop for free 100 baht in every CJ store, Tukdee with standard stores and participating stores at every CJ store until December 28, 2021.
Meanwhile, Krating Daeng has an event to give away gold worth up to 100,000 baht, 2 prizes, along with gold bull pendants every month, 155 prizes per month (worth 3,000 baht per prize) and in the last month, 160 prizes, totaling more than 3 million baht until December 15, 2021.
It is believed that from now on, the direction of the energy drink market will become more concentrated. The competition to regain sales will definitely be more intense.
Read the original news: Strengthening 30 billion falling Big name presses promotion to win purchasing power
Source: ประชาชาติธุรกิจ by www.prachachat.net.
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