The South African water enhancer market is expected to register a CAGR of 3.6% during the forecast period (2020-2025).
Diabetes is one of the major concerns in the country, with about 3.5 million people suffering from it. This has increased the focus on healthy food items, with low sugar and zero-calorie status. The rising awareness of diabetes-related risks and coronary diseases is driving consumers' interest in healthy and nutritious alternatives.
Additionally, the government's initiative to apply sugar tax on all the sugary drinks in the country is driving consumer's attention toward alternative of high sweetened drinks, such as water enhancers.
Introduction of exotic flavors, natural colorants, antioxidants and active ingredients, such as added vitamins and minerals, is driving a potential growth in this market.
High competition is witnessed among players for retail shelf space, and marketers are positioning these products next to bottled water, in order to push impulse-purchasing behavior among consumers.
Key Market Trends
Implementation of Sugar Tax, Leading to Increasing Demand for Water Drink Mixers
In April 2018, the South African government implemented a tax on sugar-sweetened beverages. This tax was aimed at reducing the consumption of sugary drinks and improving citizens’ health in the long-run, due to the increasing prevalence of diseases among the South Africans. Sugar-sweetened beverages that would be taxed include sodas, fruit drinks, energy drinks, and vitamin water that contain sucrose, high-fructose corn syrup, or fruit juice concentrates. This created a substantial demand for water enhancers in the country, to meet the consumer's thirst for flavored yet nutritional drinks. The implementation of a sugar tax has drastically declined the sales, as well as per capita consumption, of carbonated beverages in the past couple of years.
Supermarkets/Hypermarkets Hold a Significant Share in the Market
The supermarkets/hypermarkets segment of the market studied holds the largest market share, indicating consumer preference toward this segment. Owing to the high consumer demand, major supermarkets are expanding the range of water enhancers representing the diversity of the products. The growth observed in the supermarket segment was led by the appeal it causes to boomers, seeking for safe exploration of various flavors of water enhancers. The trend of bulk shopping is increasing due to the increased income and busy lifestyles of the consumers. Selling the products through supermarkets signifies the transaction building strategy of the seller, as it leads to increased impulse purchases of the consumer.
Competitive Landscape
The South African water enhancer market is dominated by the presence of foreign players, such as Welch Foods Inc., PepsiCo Inc. (Propel water), and Kraft Heinz Company, among others. The major companies, such as Kraft Heinz Company, adopted strategies, like strengthening its large manufacturing footprint, broad distribution network, substantial R&D capability, and high-level of quality and customer service.
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This product will be delivered within 2 business days.
Diabetes is one of the major concerns in the country, with about 3.5 million people suffering from it. This has increased the focus on healthy food items, with low sugar and zero-calorie status. The rising awareness of diabetes-related risks and coronary diseases is driving consumers' interest in healthy and nutritious alternatives.
Additionally, the government's initiative to apply sugar tax on all the sugary drinks in the country is driving consumer's attention toward alternative of high sweetened drinks, such as water enhancers.
Introduction of exotic flavors, natural colorants, antioxidants and active ingredients, such as added vitamins and minerals, is driving a potential growth in this market.
High competition is witnessed among players for retail shelf space, and marketers are positioning these products next to bottled water, in order to push impulse-purchasing behavior among consumers.
Key Market Trends
Implementation of Sugar Tax, Leading to Increasing Demand for Water Drink Mixers
In April 2018, the South African government implemented a tax on sugar-sweetened beverages. This tax was aimed at reducing the consumption of sugary drinks and improving citizens’ health in the long-run, due to the increasing prevalence of diseases among the South Africans. Sugar-sweetened beverages that would be taxed include sodas, fruit drinks, energy drinks, and vitamin water that contain sucrose, high-fructose corn syrup, or fruit juice concentrates. This created a substantial demand for water enhancers in the country, to meet the consumer's thirst for flavored yet nutritional drinks. The implementation of a sugar tax has drastically declined the sales, as well as per capita consumption, of carbonated beverages in the past couple of years.
Supermarkets/Hypermarkets Hold a Significant Share in the Market
The supermarkets/hypermarkets segment of the market studied holds the largest market share, indicating consumer preference toward this segment. Owing to the high consumer demand, major supermarkets are expanding the range of water enhancers representing the diversity of the products. The growth observed in the supermarket segment was led by the appeal it causes to boomers, seeking for safe exploration of various flavors of water enhancers. The trend of bulk shopping is increasing due to the increased income and busy lifestyles of the consumers. Selling the products through supermarkets signifies the transaction building strategy of the seller, as it leads to increased impulse purchases of the consumer.
Competitive Landscape
The South African water enhancer market is dominated by the presence of foreign players, such as Welch Foods Inc., PepsiCo Inc. (Propel water), and Kraft Heinz Company, among others. The major companies, such as Kraft Heinz Company, adopted strategies, like strengthening its large manufacturing footprint, broad distribution network, substantial R&D capability, and high-level of quality and customer service.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
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This product will be delivered within 2 business days.
Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Welch Foods Inc.
- PepsiCo Inc. (Propel water)
- Kraft Heinz Company
- True Citrus Co.
- Continental Mills Inc. (Alpine Spiced Cider)
- Keurig Dr Pepper
Methodology
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