Possibility of price hikes for Red Bull, Monster Energy, and other energy drinks
In 2021, due to various price increases, there is a possibility that the price of energy drinks, including Red Bull and Monster Energy, might rise. This summary covers the potential price hikes of energy drinks in light of rising aluminum, sugar, and transportation costs.
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Author: Energy Drink-kun
In 2001, while living in the United States, I encountered energy drinks through the dance scene and was deeply impressed. After returning to Japan, I found that energy drinks were considered novelty beverages, so I established a comprehensive website in 2013 to share the true appeal of energy drinks. As an energy drink enthusiast, I began drinking them seriously again, collecting over 7,000 varieties of energy drinks from various countries. I am also active as a critic and expert, receiving media interviews.
Rise in Aluminum Prices
The price of aluminum has surged by approximately 40% in 2021, marking the largest increase in 13 years. This has had a significant impact on beverage aluminum cans and other related products.
The primary cause of this price surge is said to be the political instability in Guinea, which is a major producer of bauxite, the raw material for aluminum. Additionally, the increased demand for aluminum due to the rise in electric vehicle production and the reduced production caused by China's power shortages are contributing factors.
As a result, the price of aluminum cans used in energy drinks and other beverages has skyrocketed.
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Rise in Sugar Prices
Sugar prices have also surged by approximately 33% in 2021, due to weather abnormalities in producing countries. In Thailand, a drought has caused a sugar cane shortage, with the harvest being only half of the usual yield.
Globally, food prices, including in Japan, are already rising. If the price of sugar, which is a major component of energy drinks, increases, it is highly likely that energy drink prices will follow suit.
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Rising Transportation Costs
Due to the soaring prices of crude oil, overall transportation costs have been on the rise, affecting not only energy drinks but the prices of all goods. Crude oil prices have increased by more than 50% in 2021.
Red Bull is transported from Austria and Switzerland to various countries, so price hikes seem reasonable under these circumstances.
In Japan, Red Bull Just Recently Lowered Its Price
This time, we highlighted the topic of energy drinks in the U.S.
In Japan, large-sized energy drinks have become more popular, and Red Bull, which had previously been expensive, has recently lowered its price.
Red Bull is still considered somewhat expensive compared to other brands in Japan. With the ongoing price hikes for food and other goods, will we see another price adjustment?
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