The Thai energy drinks market is expected to grow this year, and TCP Group, the manufacturer and distributor of Red Bull, Krating Daeng and Ready, plans to drive growth of its premium product segment by targeting the younger generation.
Last year, Thailand's market for energy drinks market was worth 22 billion baht.
TCP Group forecasts market expansion of 5% this year, said Varawut Pongchinpak, the group's chief commercial officer for Thailand.
Of the total market value, roughly 2 billion baht is generated by the premium segment, Mr Varawut said.
Mr Varawut said premium energy drinks include carbonated energy drinks, products with various flavours as well as enriched vitamin beverages. TCP Group's premium energy drinks are Red Bull Extra, Red Bull Soda and Ready energy drink.
He said the mass market remains fiercely competitive, with brands competing primarily on pricing to attract consumers.
On the other hand, the premium segment is less competitive but continues to grow, driven by the launch of new products, the development of unique flavours and innovative packaging, said Mr Varawut.
He said brands in the premium segment focus on delivering experiential value in their marketing communications.
This approach appeals to younger consumers who seek meaningful brand interactions.
This year, TCP Group will focus on maintaining its existing customer base while expanding its reach to younger consumers, particularly Generation Z.
To support this initiative, the company has appointed global artist BamBam Kunpimook Bhuwakul as its new global brand ambassador.
The company aims to double sales of Red Bull soda compared to last year, he said.
One of the company's key initiatives involves supporting youth culture and sports, including 3x3 basketball and skateboarding.
"Both the mass and premium segments are important to us. We continue to develop products for the mass market while boosting our presence in the premium segment to attract new customers," said Mr Varawut.
He said the company closely monitors all costs, including rising sugar prices, the sugar tax and packaging costs.
Regarding the sugar tax, he said TCP Group has reformulated all its products to comply with the regulations while preserving original flavours through ongoing research and development efforts.
"The rising sugar tax will not impact us," he noted.
