Energy Drinks Market in Uganda 2022
2023-05-16 14:57:28 UTC | Food & Beverages
Energy drinks are beverages that contain caffeine, taurine, vitamins, and other stimulants, and are marketed as products that boost mental alertness and physical stamina. These drinks may or may not be carbonated. They differ from sports drink, which are used to replace electrolytes and water during or after physical activity. In addition, they are distinguished from tea and coffee, which are brewed, contain lesser ingredients, and may be decaffeinated. The manufacturers of energy drinks claim that their products improve energy levels.
The energy drink market in Uganda is projected to achieve a compound annual growth rate of over 8.3% during the forecast period of 2022-2027, resulting in an incremental revenue of 22.7 million US dollars.
Surge in product consumption by working individuals to maintain a healthy lifestyle, increase in consciousness toward healthy diet, rise in intake among sports athletes and working individuals to maintain nutritional balance in their body, and upsurge in disposable income are expected to propel the Uganda energy drinks market. Moreover, change in consumer preference toward consumption of beverages and lifestyle is expected to create many opportunities in energy drinks market during the forecast period. However, caffeine overdose may cause hypertension, nausea, restlessness, and other associated health risks that may limit the energy drinks industry growth during the forecast period. Furthermore, implementation of stringent government regulations toward increased consumption of caffeine content in energy drinks hinders the growth of the market.
The Uganda energy drinks market is categorized by type into regular and sugar-free variants. In 2021, the regular energy drinks segment held the largest market share in Uganda and is projected to maintain its dominant position throughout the forecast period. Nevertheless, most companies operating in this segment have introduced sugar-free and zero-calorie alternatives to their products, thereby catering to a niche market segment that seeks healthier options and avoids consuming excessive sugary drinks. This strategic move not only helps companies expand their product portfolio, but also enables them to tap into a growing consumer demand for healthier energy drinks. As a result, the sugar-free segment is expected to witness significant growth in the coming years, driven by the rising health consciousness among consumers and the increasing availability of these products in the market.
The Uganda energy drinks market is further categorized by product into drinks, shots, and mixers. In 2021, the drinks segment held the largest market share in Uganda and is projected to maintain its dominant position throughout the forecast period. Drinks are the most popular form of energy drinks, owing to their convenience and ease of consumption. They are available in a wide range of flavors, catering to diverse consumer preferences. The drinks segment is also supported by extensive marketing and promotional activities, which have contributed to increased consumer awareness and demand for these products. The energy drink mix market, on the other hand, is primarily driven by consumers seeking healthy hydration through the addition of liquid enhancers to water. Furthermore, certain clean label claims such as gluten-free, sugar-free, and organic are influencing the purchasing decisions of consumers, particularly teenagers and young adults who engage in sports activities.
By Type: Regular and Sugar-Free
By Product: Drinks, Shots and Mixers
By Package: Bottle, Cans, and Others
By End User: Teenagers, Adults and Others
By Distribution Channel: Bars and HoReCa, Convenience Stores, Kiosks, Large Grocery, Supermarkets & Hypermarkets, Petro Station, Small Grocery and Others
The report examines the key players in the Uganda energy drinks market, such as PepsiCo, Inc., Hariss International Limited, The Coca-Cola Company, Red Bull GmbH, and Suntory Holdings Limited. It also analyzes market segments and sub-segments, and provides market analysis by product type, package, end user and distribution channel. The report evaluates the potential of the Uganda energy drinks industry by presenting statistical information on market size, market share, growth rate, and forecasts.