|
|
 |
|
Viewing report
|
|
|
|
Production and Investment Forecasts in the South African Beverages Market
Frost & Sullivan, Nov 2010, Pages: 186
This research service covers production and investment trends and forecasts for the South African beverages industry from 2006 to 2014. The base year for this study is 2009 and the forecast period is from 2010 to 2014. The research service begins with a high level analysis of industry challenges, market drivers and restraints impacting the South African beverages industry. The second section discusses historic production, demand and sales trends within the beverages industry. The third section provides an assessment of investment patterns within the South African beverages industry. The study concludes with the provision of production and investment forecasts for the South African beverages industry from 2010 and 2014.
This research service titled Production and Investment Forecasts in the South African Beverages Market provides a comprehensive analysis of the South African beverages industry from 2010 to 2014. The research service provides a succinct analysis of industry fundamentals that drive growth and influence strategic planning and investment with the beverages industry of South Africa. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: beer, non-alcoholic beverages, wines, hot beverages and spirits.
Market Overview
Spirited Future for Beverages Manufacturers from 2011 Onwards
The demand for beverages within South Africa will be strongly influenced by an increase in local, regional and export demand for locally produced beer, wine and non-alcoholic beverage commodities. An anticipated rise in per capita GDP from $5,823.58 per annum in 2009 to $7,778.29 per annum in 2014 will be one of the key factors responsible for the rise in domestic demand for beverage commodities during this period. The South African population is also expected to grow by more than 1.5 million between 2011 and 2014 as a result of the rise in regional migration. This increase in population size will also boost existing demand for locally produced beverages.
The anticipated recovery of the country’s economy in 2010 and beyond is projected to contribute significantly to employment creation during this period. The South African economy is also expected to grow considerably in value terms between 2011 and 2014, driven by a rise in manufacturing output. “This rise in value will cause a steady increase in per capita GDP, raising the amount of disposable incomes of the South African population,” notes the analyst of this research. ”The increment in disposal incomes will, therefore, contribute to a significant growth in volume demand for beverage products, particularly for alcoholic beverages and soft drinks between 2011 and 2014.” Driven by a growing black middle class, the local demand for flavoured alcoholic beverages has continued to rise considerably since 2006. With per capita GDP of the South African populace anticipated to rise steadily in 2011 and beyond, the demand for flavoured alcoholic beverages is expected to increase at a faster rate when compared to other alcoholic beverage markets, benefiting manufacturers operating within this space.
Increasing Regional and International Demand Bring More Cheer to the Beverage Industry
Threats to the steady growth of the South African beverages industry include a tightening in credit availability and greater unemployment. These factors have adversely impacted on domestic consumer spending and therefore, contributed to a decline in alcoholic beverage commodity purchases, particularly premium beers. “Even though there were more recent declines in inflation, fuel prices and interest rates in 2009, the high levels of household debt have not been sufficiently curbed and the impact of diminished disposable income continues,” cautions the analyst. “The decline in disposable incomes is, therefore, expected to cause a sizable decline in medium- and long-term demand, particularly for economic alcoholic beverages.”
Despite a decline in short-term demand due to rising debt, increasing regional demand for locally produced fruit juices, flavoured alcoholic beverages, premium wine, brandy and cane and grain spirits is set to sustain and drive the growth of the South African beverages industry over the short and medium terms. “In addition to the rise in regional demand, international demand for locally produced wines is also expected to rise steadily between 2011 and 2014,” concludes the analyst. “This trend will sustain the industry’s production output growth drive.”
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- Beer
- Non-alcoholic Beverages
- Wines
- Hot Beverages
- Spirits
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
