Sales of energy drinks in South Korea reportedly down sharply in 2013 due to growing health concerns over consumption of beverages
June 19, 2013
(Business Monitor International)
– Sales of energy drinks in South Korea have declined sharply in 2013 owing to growing health concerns over the consumption of the highly caffeinated beverage, reports Yonhap news agency, citing a local report. Energy drink sales at 7-Eleven stores in South Korea rose 1.1% y-o-y in May 2013, compared with a 123% y-o-y sales increase in January. Ministop convenience stores reported a 2% decline in the sales of energy drinks in H113. Discount retailer E-Mart Company says sales of energy drinks have risen 7.5% in the last five weeks, compared with a 97.5% rise in the January-April period.
BMI View: The South Korean soft drinks sector is dominated by three large companies: Lotte Chilsung Beverage, Coca-Cola Beverage Company (formerly Coca-Cola Amatil) and Haitai Beverage . Competition is strong, and the leading players engage in intense marketing activities to protect their market shares. Smaller companies, such as Woonghin Food and Kunyoung Food , focus on niche and speciality products in order to compete with the leading operators within the confines of their own resources. South Korea, along with the rest of the Asia Pacific region, is experiencing the same shifts in soft-drink consumption patterns as the rest of the world. Sales of carbonates are decreasing, and manufacturers are shifting their focus towards healthy and functional drinks to offset the loss of sales in the carbonate sector.