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Hot Drinks in South Africa

  • ID: 63916
  • April 2016
  • Region: Africa, South Africa
  • 38 Pages
  • Euromonitor International
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FEATURED COMPANIES

  • All Joy Foods (Pty) Ltd
  • Bromor Foods (Pty) Ltd
  • Colman Foods Ltd
  • Glen Apples CC
  • House of Coffees, The
  • Nabisco SA Pty Ltd
  • MORE

Retailers are increasingly feeling the impact of limited growth in consumer incomes as customers increasingly cut their expenditure on certain items. Although the food industry, including hot drinks, was the least affected, some consumers were seen to trade down to cheaper brands as well as cutting down the amount of certain products consumed including hot drinks.

The Hot Drinks in South Africa report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data 2011-2015, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they legislative, distribution or pricing issues. Forecasts to 2020 illustrate how the market is set to change.

Product coverage: Coffee, Other Hot Drinks, Tea.

Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.

Why buy this report?
- Get a detailed picture of the Hot Drinks market;
- Pinpoint growth sectors and identify factors driving change;
- Understand the competitive environment, the market’s major players and leading brands;
- Use five-year forecasts to assess how the market is predicted to develop.

Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • All Joy Foods (Pty) Ltd
  • Bromor Foods (Pty) Ltd
  • Colman Foods Ltd
  • Glen Apples CC
  • House of Coffees, The
  • Nabisco SA Pty Ltd
  • MORE

HOT DRINKS IN SOUTH AFRICA

April 2016

LIST OF CONTENTS AND TABLES

Executive Summary
Consumers Curb Spending Due To Limited Income Growth
Private Label Continues To Grow
Leading Players Retain Share in Hot Drinks
3-in-1 Instant Coffee Gains Momentum in South Africa
Poor Economic Outlook Threatens Growth Prospects
Key Trends and Developments
Tea Remains the Most Popular Hot Beverage in South Africa During 2015
Private Label Hot Drinks Gaining Ground
Market Data
Table 1 Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2010-2015
Table 2 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2010-2015
Table 3 Retail Sales of Hot Drinks by Category: Volume 2010-2015
Table 4 Retail Sales of Hot Drinks by Category: Value 2010-2015
Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2010-2015
Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2010-2015
Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2010-2015
Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2010-2015
Table 9 Total Sales of Hot Drinks by Category: Total Volume 2010-2015
Table 10 Total Sales of Hot Drinks by Category: % Total Volume Growth 2010-2015
Table 11 NBO Company Shares of Hot Drinks: % Retail Value 2011-2015
Table 12 LBN Brand Shares of Hot Drinks: % Retail Value 2012-2015
Table 13 Penetration of Private Label in Hot Drinks by Category: % Retail Value 2010-2015
Table 14 Retail Distribution of Hot Drinks by Format: % Volume 2010-2015
Table 15 Retail Distribution of Hot Drinks by Format and Category: % Volume 2015
Table 16 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2015-2020
Table 17 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2015-2020
Table 18 Forecast Retail Sales of Hot Drinks by Category: Volume 2015-2020
Table 19 Forecast Retail Sales of Hot Drinks by Category: Value 2015-2020
Table 20 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2015-2020
Table 21 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2015-2020
Table 22 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2015-2020
Table 23 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth 2015-2020
Table 24 Forecast Total Sales of Hot Drinks by Category: Total Volume 2015-2020
Table 25 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 2015-2020
Definitions
Sources
Summary 1 Research Sources
Chicory SA Ltd in Hot Drinks (south Africa)
Strategic Direction
Key Facts
Summary 2 Chicory SA Ltd: Key Facts
Competitive Positioning
Joekels Tea Packers (pty) Ltd in Hot Drinks (south Africa)
Strategic Direction
Key Facts
Summary 3 Joekels Tea Packers (Pty) Ltd: Key Facts
Summary 4 Joekels Tea Packers (Pty) Ltd: Operational Indicators
Competitive Positioning
Summary 5 Joekels Tea Packers (Pty) Ltd: Competitive Position 2015
National Brands Ltd in Hot Drinks (south Africa)
Strategic Direction
Key Facts
Summary 6 National Brands Ltd: Key Facts
Summary 7 National Brands Ltd: Operational Indicators
Competitive Positioning
Summary 8 National Brands Ltd: Competitive Position 2015
Vital Health Foods (pty) Ltd in Hot Drinks (south Africa)
Strategic Direction
Key Facts
Summary 9 Vital Health Foods (Pty) Ltd: Key Facts
Competitive Positioning
Summary 10 Vital Health Foods (Pty) Ltd: Competitive Position 2015
Headlines
Trends
Competitive Landscape
Prospects
Category Data
Table 26 Retail Sales of Coffee by Category: Volume 2010-2015
Table 27 Retail Sales of Coffee by Category: Value 2010-2015
Table 28 Retail Sales of Coffee by Category: % Volume Growth 2010-2015
Table 29 Retail Sales of Coffee by Category: % Value Growth 2010-2015
Table 30 Retail Sales of Fresh Coffee by Regular vs Decaffeinated: % Value 2010-2015
Table 31 Retail Sales of Fresh Ground Coffee by Standard vs Pods: % Value 2010-2015
Table 32 Retail Sales of Instant Coffee by Type: % Value Breakdown 2010-2015
Table 33 NBO Company Shares of Coffee: % Retail Value 2011-2015
Table 34 LBN Brand Shares of Coffee: % Retail Value 2012-2015
Table 35 Forecast Retail Sales of Coffee by Category: Volume 2015-2020
Table 36 Forecast Retail Sales of Coffee by Category: Value 2015-2020
Table 37 Forecast Retail Sales of Coffee by Category: % Volume Growth 2015-2020
Table 38 Forecast Retail Sales of Coffee by Category: % Value Growth 2015-2020
Table 39 Forecast Retail Sales of Fresh Ground Coffee by Standard vs Pods: % Value 2015-2020
Headlines
Trends
Competitive Landscape
Prospects
Category Data
Table 40 Retail Sales of Tea by Category: Volume 2010-2015
Table 41 Retail Sales of Tea by Category: Value 2010-2015
Table 42 Retail Sales of Tea by Category: % Volume Growth 2010-2015
Table 43 Retail Sales of Tea by Category: % Value Growth 2010-2015
Table 44 Retail Sales of Tea by Standard Vs Pods: % Value 2010-2015
Table 45 NBO Company Shares of Tea: % Retail Value 2011-2015
Table 46 LBN Brand Shares of Tea: % Retail Value 2012-2015
Table 47 Forecast Retail Sales of Tea by Category: Volume 2015-2020
Table 48 Forecast Retail Sales of Tea by Category: Value 2015-2020
Table 49 Forecast Retail Sales of Tea by Category: % Volume Growth 2015-2020
Table 50 Forecast Retail Sales of Tea by Category: % Value Growth 2015-2020
Table 51 Forecast Retail Sales of Tea by Standard vs Pods: % Value 2015-2020
Headlines
Trends
Competitive Landscape
Prospects
Category Data
Table 52 Retail Sales of Other Hot Drinks by Category: Volume 2010-2015
Table 53 Retail Sales of Other Hot Drinks by Category: Value 2010-2015
Table 54 Retail Sales of Other Hot Drinks by Category: % Volume Growth 2010-2015
Table 55 Retail Sales of Other Hot Drinks by Category: % Value Growth 2010-2015
Table 56 Retail Sales of Other Hot Drinks by Standard Vs Pods: % Value 2010-2015
Table 57 NBO Company Shares of Other Hot Drinks: % Retail Value 2011-2015
Table 58 LBN Brand Shares of Other Hot Drinks: % Retail Value 2012-2015
Table 59 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2015-2020
Table 60 Forecast Retail Sales of Other Hot Drinks by Category: Value 2015-2020
Table 61 Forecast Retail Sales of Other Hot Drinks by Category: % Volume Growth 2015-2020
Table 62 Forecast Retail Sales of Other Hot Drinks by Category: % Value Growth 2015-2020
Table 63 Forecast Retail Sales of Other Hot Drinks by Standard Vs Pods: % Value 2015-2020

Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • All Joy Foods (Pty) Ltd
  • Bromor Foods (Pty) Ltd
  • Colman Foods Ltd
  • Glen Apples CC
  • House of Coffees, The
  • Nabisco SA Pty Ltd
  • MORE

Growing coffee culture in South Africa in 2005

There is a growing coffee culture in South Africa, buttressed by a trend towards more premium coffees, such as origin-specific coffees, as disposable income increases for the majority of consumer groups. Concern over the negative effects of caffeine have yet to strongly affect coffee sales in South Africa, despite greater understanding of current health and wellness issues; however these are largely confined to the upper echelons of society. Much has been done to attract new coffee consumers straight into premium branded coffee, bypassing the cheaper brands. The growing number of coffee kiosks and coffee shops that have sprung up are a direct response to the growing demand for quality coffee.

Tea sees recovery from its former slump

Tea once again experienced a small, but positive growth in 2005. Over the review period, tea experienced an increase in unit price, leading to lower volume consumption amongst South African consumers. Tea is traditionally known as the cheapest beverage in South Africa apart from water. There are a large number of tea drinkers in South Africa, and the majority of these consumers are extremely price sensitive. Tea accounts for almost half of all hot drinks volume sales, and it is important for manufacturers to ensure continued interest in the sector. Manufacturers have recently been working together to grow and extend the sector via product innovation, packaging updates, and new launches. Tea prices have stabilised and it is once again an affordable product for the mass consumer.

Trend towards healthier, caffeine-free teas in 2005

A major factor in recent growth was the growing trend towards the consumption of “healthier” teas, rich in antioxidants and free of caffeine, preservatives and flavourants. The health-conscious, richer South African consumer has increased his support for fruit/ herbal tea, green tea and rooibos tea (which falls under other tea according to Euromonitor International’s definitions). These teas tend to be consumed without milk or sugar, and are considered to have cleansing and soothing properties.

Coffee pods hit South African retail shelves in 2005

Coffee pods were introduced to South African retail shelves in late 2005. They are a new concept to the country, and the manufacturer, The House of Coffees, is focusing its advertising expenditure on educating the consumer on the benefits of using coffee pods (in its branded coffee pod machine). In an age where consumers are leading increasingly busy lives, there is a focus on convenience. While busy South Africans desire the quality and freshness of freshly brewed coffee, they do not have the time to prepare it. Coffee pods, in conjunction with the new coffee pod machine, should satisfy consumer demand for both quality and convenience.

Distribution favours supermarkets/hypermarkets

Volume sales of hot drinks in South Africa in 2005 continued to be dominated by off-trade sales. Not only is off-trade deemed more affordable by a larger portion of the population, but it also caters to consumer needs on a more regular basis. Off-trade retail outlets also offer consumers a wider range of products. Supermarkets/hypermarkets remained the dominant distribution channel for hot drinks in 2005. This is largely due to the large variety of brands available and the price competitiveness of these outlets.

Good years ahead, especially in retail outlets

Demand for hot drinks over the forecast period will increase, with retail volume sales expected to outperform those of the review period. Higher disposable incomes will be the main driver of growth, although consumers will also enjoy slightly lower prices as competition increases, especially in retail outlets. On-trade sales will lag behind somewhat; most consumers will prefer to consume at home, although the nascent growth in coffee shops will continue.

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Companies Mentioned Include:
- Nestlé South Africa (Pty) Ltd
- National Brands Ltd
- Unifoods (Pty) Ltd
- Bromor Foods (Pty) Ltd
- GlaxoSmithKline SA (Pty) Ltd
- House of Coffees, The
- Nabisco SA Pty Ltd
- Stafford Bros & Draeger (Pty) Ltd
- Coffee, Tea & Chocolate Co (Pty) Ltd, The (CTC Co)
- Vital Health Foods (Pty) Ltd
- Nutritional Foods (Pty) Ltd
- All Joy Foods (Pty) Ltd
- Glen Apples CC
- Permark International (Pty) Ltd
- Colman Foods Ltd

Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown

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