Fuel the Passion: Vietnam's Energy Drink Revolutionizing Consumer Preferences

The Vietnam energy drinks market has experienced notable growth due to urbanization, associated with changing consumer preferences and the requirement for convenient, immediate sources of energy. The market caters to a demanding and busy lifestyle, specifically in urban areas, where consumers seek accessible and quick energy sources.

The economic structure of the Vietnam energy drinks ecosystem is still evolving, and a report by Astute Analytica projects that the?Vietnam energy drinks market is expected to reach a market size of US$ 6,513.7 million by 2032, with a compound annual growth rate (CAGR) of nearly?7.1% during the forecast period from 2024 to 2032.

A Brief About Market: -

A broad range of products characterizes the market, including conventional energy shots, energy drinks, and energy-infused beverages. These products range in caffeine flavors, content, and added ingredients like amino acids and vitamins. The brand landscape is a combination of international and local players. International brands are usually recognized for their global quality standards, while local brands cater to regional preferences and tastes.

A study indicates that presentation and packaging play a critical role in consumer preference, with energy drinks generally packaged in bottles, cans, or single-serving shots being highly popular among consumers. The design and branding of these packages often highlight attributes like alertness, energy, and vitality.

The growth of the market is propelled by the rising exposure to international trends and brands, the development of modern retail outlets and convenience stores, the rising urban development, and an increasing awareness of health-conscious options. Rapid innovations in regulatory measures and packaging regarding advertising, labeling, and product composition also contribute to market growth.

In terms of market share, international brands like Red Bull and local brands like Tan Hiep Phat are important players. The revenues of Red Bull are a testament to its strong market presence, while Tan Hiep Phat's Wake-Up 247 coffee-flavored energy drink has also grabbed a substantial market share.?

Easy Availability of Diverse Product Range

The Vietnamese energy drinks market is characterized by its diverse range of products, a key driver of its growth. This diversity has conventional energy shots, energy drinks, and energy-infused beverages, each with unique caffeine flavors, content, and added ingredients like vitamins and amino acids. The presence of both local and international brands further enhances this diversity, demanding different consumer segments.

For instance, international brands often bring innovative flavors and global quality standards, while local brands deliver products tailored to regional dietary and taste preferences. This variety in product offerings enables the adoption and experimentation among a broader audience, fostering a competitive and dynamic market environment.?

As of 2023, the market witnesses a significant portion of consumers opting for energy-infused beverages, indicating a change towards more lifestyle-oriented products.

Also, the trend of incorporating natural ingredients and reduced sugar content reflects the growing consumer preferences in the country. Reports suggest that more than 60% of new product launches in the sector are now focusing on health-oriented features, like added vitamins or concentrated caffeine levels.

The growth of the market is also evidenced by a surge in sales volume, with a year-on-year growth of approximately 15% in the last two years. This growth trajectory is anticipated to continue, with projections showing a further 20% growth in market size by 2025. This development is important considering that the energy drinks market of Vietnam already accounts for a significant share of the beverage industry in the region.

Changing Consumer Behavior Taking Shape in the Market

A distinctive trend in the energy drinks market of the country is the changing consumer behavior towards these beverages. Unlike standard patterns, where energy drinks were consumed straight from the can, Vietnamese consumers increasingly choose to consume these drinks with ice in a glass, usually accompanied by food. This unique consumption pattern shows a deeper integration of energy drinks into the daily lifestyle and dietary habits of the Vietnamese populace.

The trend not only reflects cultural importance but also points to the high consumption rate of energy drinks in the country, making the market highly dynamic and competitive. Recent studies indicate that more than 70% of energy drink consumers in the country choose to mix their drinks with food, a notable departure from the global norm of on-the-go consumption. Moreover, the frequency of consumption has witnessed notable growth, with more than 50% of consumers reporting weekly or daily consumption, higher than the regional average.?

This change in consumption habits is also influencing packaging trends, with rising demand for larger, resealable packaging formats that cater to comprehensive consumption occasions. The impact of this trend on the market is substantial, with brands increasingly concentrating on marketing strategies that emphasize energy drinks as part of a meal or social gathering. Also, this behavior has spurred innovation in flavor profiles, with a pronounced growth in the launch of products that complement local cuisine. This strategy has seen a positive response from consumers.

Exploring the Health Benefits of Energy Drinks: -

Gives a boost in energy

Two key ingredients in energy drinks are caffeine and sugar. The combination of these supplements is what charges the body and mind to stay energized and awake to combat a long day. When people are energized, they can effectively complete their tasks.

Zero calorie option

A healthier alternative is available as its goal is to limit weight gain and sugar consumption while having the same effect as those with sugar and calories.

Convenient

Purchasing energy drinks is accessible at almost any retail store. They are also cheap with prices ranging depending on the brand.

Can improve the mood and attitude

Once people are high on energy, they will feel like they can take on anything. Eliminating the temperamental and groggy mood will lead to constructive relationships among peers and family.

Boost performance for workouts

Energy drinks have a high source of vitamin B, which is utilized to give people energy. Gulping down an energy drink before a workout can help with their endurance and performance.

Recent Launches: -

In 2019, Coca-Cola rolled out a new energy drink– Coca-Cola Energy– in Vietnam as part of the larger focus of the company to evolve into a complete beverage company and offering Vietnamese consumers a broad range of drinks to cater the different occasions and lifestyles.

In 2022, Nestlé’s move to rebrand a Milo product it only established in Vietnam, though a tacit admission of a misstep, looks a wise move.

The company raised its Milo RTD dairy and dairy alternatives range in Vietnam with the Mindvibe variant last year. The peppermint-flavored malt drink targeted younger Vietnamese consumers with a formulation that had ingredients claimed to boost mental cognition, like zinc, green tea, taurine, and B vitamins. However, Milo Mindvibe has a new name: Milo Dynamind. The relaunch has been reported by a marketing campaign in Ho Chi Minh City, targeting Gen Z consumers.

In June 2023, the new global brand “Thums Up Charged” was established in Vietnam. A caffeinated drink that represents the spirit of "Go For It", and “Thums Up Charged” motivates Gen Z to confidently pursue their passions and live life to the fullest. “Thums Up Charged” comes in two delicious flavors, Fresh Kiwi and Juicy Berry, and contains added vitamin B3, caffeine, and zinc to meet the requirements of consumers.

In 2024, the Masan Group of Vietnam recently presented EnerZ, a new energy drink that helps unleash inner power. The new energy drink is powered by choline, vitamin B6, and caffeine.

This easy-to-drink energy drink has two flavors: passion fruit, and melon and mango, offering consumers a tasty energy drink alternative with real added juice. Consumers not into energy drinks but want functional energy advantages will find this a pleasant beverage.

Closing Note: -

As the energy drinks market of the country continues to expand, propelled by urbanization and growing consumer preferences, one thing remains clear, these beverages are more than just a source of quick energy—they are a reflection of a dynamic lifestyle. From conventional brands to innovative newcomers, each product contributes uniquely to the daily routines and cultural fabric of Vietnamese society.

The introduction of such energy drinks exemplifies this trend, offering not only a growth of vitality but also a glimpse into the future of beverage innovation in the country. It is a blend of ingredients and local adaptations that caters straight to the requirements of a bustling urban population seeking convenience without compromise.

Looking ahead, the energy drinks market shows promising signs of growth and adaptation, with a change towards healthier formulations and a deeper integration into everyday routines. As consumers adopt these drinks as more than just refreshments, but as important companions in their quest for productivity and enjoyment, the landscape of the beverage industry of the country continues to grow.

Whether enjoyed solo on a hectic morning or paired with friends during a social gathering, the energy drinks of the country are here to stay, embodying the spirit of progress and vitality that represents the future of the nation.