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Are sponsorships the front runner in SA's sports and energy drinks market?

In South Africa, the use of sponsorships in sports and energy drinks marketing is an ongoing trend, especially for sport teams and extreme sports. The association with athletes and sporting events has been a strategic move, by sports and energy drink brands, to combat the negative perceptions of these types of drinks. In addition, sponsorships have also provided sports and energy drinks with the opportunity to build brand loyalty among consumers.
Are sponsorships the front runner in SA's sports and energy drinks market?

Insight Survey’s latest SA Sports and Energy Drinks Industry Landscape Report 2020, carefully unfolds the sports and energy drinks landscape in South Africa, based on the latest information and research. It describes the latest global and local market trends, innovation and technology, drivers and challenges, to present an objective insight into the South African sports and energy drinks industry environment, and its future.

In 2019, the value of the global sports drinks market was estimated to be valued at approximately 12.5 billion litres and the global energy drinks market at approximately 11.4 billion litres, as illustrated in the graph below. Over the next five years, the global sports drinks market is predicted to grow at a compound annual growth rate (CAGR) of 3.1% (previously 4.2%), whilst the energy drinks market is predicted to grow at a CAGR of 5.9% (previously 7.2%), which incorporates the significant impact of the Covid-19 global pandemic.

Source: . Graphics by Insight Survey
Source: Euromonitor. Graphics by Insight Survey
click to enlarge

In South Africa, the use of sponsorships has grown significantly, with many sports and energy drink brands making use of sporting events and team sponsorships, to increase product awareness and create positive brand associations.

Energy drink sponsorship partners are often associated with high energy, extreme sporting events such as the Red Bull King of the Air, an international kiteboarding competition, which was held in Cape Town in January 2020. Moreover, Red Bull was also the sponsor for the first national car spinning competition, Red Bull Shay’ iMoto, which was held in October 2019.

In terms of sports drink brands, Energade has sponsored several national sport teams including the Springboks and Bafana Bafana. Along with the growing popularity of women’s sport in the country, Energade has also sponsored Banyana Banyana and the Proteas netball team. In addition, Energade has launched their Fuelling SA Heroics campaign, highlighting their association with these teams and their role in South African sporting successes, such as the Springboks’ 2019 World Cup victory.

Furthermore, brands are not only sponsoring sport teams, but are also partnering with them. As an example, USN partnered with South African football team, Orlando Pirates, to release their limited edition ‘It’s The Qhush‘ Spike X300 Extreme energy drink. This product features the Orlando Pirates logo and is named after the word ‘qhush’, which is used by the football players, to describe the sound when opening an energy drink can.

The trend of sports and energy drink brands, making use of event and team sponsorships as a key marketing tool, is likely to continue in the market. This trend is supported by the numerous ongoing sponsorships, undertaken by sports and energy drink brands, to increase awareness and create positive brand perceptions.

The South African Sports and Energy Drinks Industry Landscape Report 2020 (114 pages) provides a dynamic synthesis of industry research, examining the local and global Sports and Energy Drinks industry (including the impact of Covid-19), from a uniquely holistic perspective, with detailed insights into the entire value chain – from global and local trends to manufacturing, retailing and pricing.

Some key questions the report will help you to answer:
  • What are the current market dynamics of the global sports and energy drinks industry?
  • What are the key global South African sports and energy drinks industry trends, innovation and technology, drivers and challenges?
  • What are the market size value and volume trends in the South African sports and energy drinks market (2014-2019) and forecasts based on the impact of Covid-19 (2020-2024)?
  • Who are the key manufacturers, distributors and retail players in the South African sports and energy drinks industry?
  • What are the prices of popular sports and energy drinks brands at retail outlets and convenience stores?

Please note that the 114-page report is available for purchase for R30,000 (excluding VAT). Alternatively, individual sections can be purchased for R12,500 (excluding VAT). For additional information simply contact us at az.oc.yevrusthgisni@ofni or directly on (0)21 045-0202.

For a full brochure please go to: South African Sports and Energy Drinks Industry Landscape Report 2020.

6 Jul 2020 08:16

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