Energy Drinks

Energy Drinks | market research

Energy Drinks

Best-selling energy drinks in Iran: Who Has inherited Red Bull in the Iranian Market?

Energy drinks are considered one of the most attractive food markets in Iran, which has experienced high growth rates both in terms of weight and financial aspects in recent years. In recent years, the energy drinks market has become attractive to Iranian companies, and they have made significant investments to produce or brand this product.

 

 The main reasons for investment growth in the market in the last 5 years have been due to the following reasons:

1. The limited presence of international brands such as Red Bull in Iran, which has mainly been affected by intensified sanctions, import restrictions, and currency price increases (vacant position of international brands).

2. The willingness of different consumer groups, especially Generation Z, to consume this product, leads to an increase in the market size.

History

Before 2017, The energy drinks market had two main players: Hype and Red Bull. In those years, Hype with over 55% of the market share was the absolute and undisputed leader in the energy drink market in Iran. Red Bull was also the second brand with a powerful position in the Iranian market (especially in AB economic segments).
However, intensified sanctions and currency price increases caused Red Bull’s position to decline, and gradually, this international brand lost its place in the market. At the same time as the decline in Red Bull’s market share, new Iranian brands entered the market to fill the gap of this international brand. During these years, many companies entered the energy drink market, and new brands were created in the market. Along with the intensified competition, the attractiveness of this market has decreased in recent months, but this market is still considered one of the attractive markets in the food sector.

The Hype brand has faced a decrease in market share over the past three years and currently, less than 30% of this market belongs to the Hype brand. However, this brand is still known as the market leader and the top-selling energy drink brand in Iran. Other brands have a slight difference compared to each other. However, the Happy Life brand, mainly known as “Life,” has a larger market share than its competitors in major cities and is known as the second top-selling brand in the market.

It is predicted that in 2023, the highest growth rate will be attributed to the Night King and Trex brands, as they have received a high score in the “perceived quality” index and the product accessibility index due to the use of a power distribution system, and will grow together.

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