Red Bull is to expand in Brazil by building a production facility in the country. Here, just-drinks looks at Brazil’s thirst for energy and sport drinks, with the help of Euromonitor’s Sports & Energy Drinks in Brazil report.
- Red Bull’s namesake drink already holds the lead position in Brazil’s energy drinks market with a 49.6% volume share. Second place is held by The Coca-Cola Co’s Burn energy with an 11.7% share, followed by Lizur Trading’s Flash Power energy with a 4.8% share.
- Brazil is still a small market for energy drinks, with off-trade volume sales of 31m litres in 2010, corresponding to 1% of global volume. However, new product launches with new positionings and lower price points, and increased availability, mean that the market is tipped for growth.
- Energy drinks was the fastest growing soft drinks category in Brazil in 2010, with 33% growth in value terms.
- Although some health concerns have been voiced regarding energy drink consumption, particularly when associated with alcohol, there is no indication that the category is acquiring a negative image in Brazil, Euromonitor says. Sales of energy drinks are predicted to grow in total volume at 14% per year on average between 2010 and 2015.
- Euromonitor predicts that multinational manufacturers will start to invest more in the country to offset sluggishness in other markets. Brazil could be one of the top five markets worldwide for energy drinks, according to Euromonitor, although no timescale was given.
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