In 2016, we conducted a comprehensive market research for Psport, a British sports drink brand that had been searching for a distributor in Turkey for over a year. This article presents the information and observations we gathered during this research process, as well as the opportunities and challenges in the sports drinks market in Turkey.
The sports drink market in Turkey
The rapid spread of sports and a healthy lifestyle culture in Turkey has created significant growth potential for the sports drinks sector. In recent years, the increase in healthy living and exercise habits has led to a rise in the consumption of sports drinks. The growing interest of consumers in products that are low in sugar, rich in electrolytes, natural, and free from additives has made sports drinks a preferred option.
Overall, the primary consumer group consists of athletes, fitness enthusiasts, young people, and those adopting a healthy lifestyle. The increasing number of gyms, sports clubs, and outdoor sports events, especially in major cities, has contributed to a notable rise in the consumption of these beverages. While the sports drinks market is relatively small compared to energy drinks and traditional beverages, it is rapidly expanding due to increased health awareness and the spread of sports habits.
Our distributor search process
In our research, we reached out to companies in the healthy living and food sector, primarily based in Istanbul, capable of communicating in English, and possessing extensive distribution channels. We conducted a total of 64 meetings with importers and manufacturers, mainly operating in nutritional supplements, mineral water, fruit juice, and health products. Although most of the representatives spoke fluent English, Turkish was the preferred language for distributor discussions.
Finding new candidates for our client, who had previously contacted many companies on their own, took a longer time. It was also challenging to secure appointments with companies they had previously approached. Considering the possibility that our client may not have been able to fully express themselves in initial contacts, we reached out to higher-level executives (company owners or CEOs) to explain the new situation.
Sports drink or energy drink?
In Turkey, the difference between sports drinks and energy drinks is not widely understood. Even when the distinction is explained, many in the industry remain unsure if consumers can clearly differentiate between the two.
Most potential distributor companies we spoke with were uncertain about which category a sports drink should belong to: a health product, dietary supplement, energy drink, fruit juice, mineral water, or medical product. Despite having experience importing a range of products, many of these companies expressed concerns that importing procedures and costs might differ for products in the health food category. They requested a detailed review of the legal procedures involved in importing sports drinks. Some firms were also uncertain if the product should be classified as a health supplement or an energy drink.
Challenges and opportunities in the market
The success of sports drink brands in the Turkish market hinges on implementing the right marketing strategies and focusing on education targeted at athletes. Besides the expected need for intensive marketing and educational activities in the early years, geopolitical tensions and fluctuations in exchange rates make distributor candidates hesitant to commit to importing a new product. Therefore, they prefer agreements where risks are minimized or shared.
The primary consumer base for sports drinks includes athletes, fitness enthusiasts, and those who embrace a healthy lifestyle. The growing trend towards natural, low-calorie, and locally sourced ingredients creates opportunities for new brands and products. While international brands such as Powerade and Gatorade currently dominate a significant portion of the market, the increasing demand for local and natural products opens new avenues for domestic producers.
Sports drinks are typically found in various sales channels, including gyms, supermarkets, sports stores, e-commerce platforms, and convenience stores. The increasing popularity of online sales and subscription-based models offers new marketing opportunities for sports drink brands. However, overcoming high competition and pricing challenges in this sector requires adopting effective marketing strategies and raising consumer awareness.
Market opportunities in Turkey
The sports drink market in Turkey has the potential for significant growth, driven by the spread of healthy lifestyle trends and sports culture. The product’s market success depends on the intensity of marketing activities and athlete education. Brands looking to enter the Turkish market need to closely monitor the domestic market, customs procedures, legal regulations, and currency fluctuations. Building trust in the market requires approaching distributor candidates as long-term partners and strengthening collaboration.
In conclusion, for sports drink brands to succeed in Turkey, investments in product promotion, marketing activities, and consumer education are essential. To mitigate market risks and establish a successful business partnership, brands must present a clear and transparent approach to long-term partnership, risk-sharing, and profit distribution.
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