Balancing Tradition with Innovation in Energy Drinks
While the broader Southeast Asian market is embracing the low-sugar trend, Hippo Energy Drink has found that consumers in Cambodia, Laos, Myanmar, and Vietnam (CLMV) still prefer higher sugar content in their beverages. Despite positioning itself as a natural energy drink with caffeine sourced from green tea and added vitamins, Hippo continues to use sugar as a key ingredient to meet the specific demands of its core markets.
Consumer Preferences and Market Dynamics
In the CLMV region, energy drinks are primarily consumed by blue-collar workers who rely on the immediate energy boost that sugar provides. For these consumers, sugar content above 17% to 18% is essential for both energy and taste satisfaction. Despite evolving preferences for unique flavours and added functionalities like vitamins and fibre, the main purchasing driver remains pricing. Hippo has observed that even small price increases can significantly impact market share, making cost sensitivity a critical factor in product launches.
Adapting to Market Perceptions
In contrast to CLMV, the Thai market presents challenges due to a low perception of energy drinks as unhealthy products intended for labourers. Despite positive feedback in taste tests, actual purchase interest drops when consumers learn that a product is an energy drink. Hippo is exploring marketing pivots towards healthier components to shift these perceptions, though the brand acknowledges the need for a unique approach to succeed in this strategy.
Comments