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Hot Drinks in South Africa

  • ID: 63916
  • Report
  • Region: Africa, South Africa
  • 32 Pages
  • Euromonitor International
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Retail volume sales continued to steadily decline due to restrictive market conditions and rising inflation. With South Africa falling into a technical depression, consumers were left with lower spending confidence. Parallel to this, manufacturers were further challenged by the Rand depreciation, which affected importation costs on key ingredients, including those for black tea.

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 2014-2018, 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 2023 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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HOT DRINKS IN SOUTH AFRICA

List of Contents and Tables
Executive Summary
Value Sales of Hot Drinks Continue To Increase Despite Lower Volume
Private Label Gains Momentum Across Categories
Nestlé South Africa Leads Hot Drinks
Innovation Targets Niche Markets in 2018
Upward Trend To Be Recorded in Hot Drinks Going Forward
Market Data
Table 1 Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2013-2018
Table 2 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2013-2018
Table 3 Retail Sales of Hot Drinks by Category: Volume 2013-2018
Table 4 Retail Sales of Hot Drinks by Category: Value 2013-2018
Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2013-2018
Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2013-2018
Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2013-2018
Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2013-2018
Table 9 Total Sales of Hot Drinks by Category: Total Volume 2013-2018
Table 10 Total Sales of Hot Drinks by Category: % Total Volume Growth 2013-2018
Table 11 NBO Company Shares of Hot Drinks: % Retail Value 2014-2018
Table 12 LBN Brand Shares of Hot Drinks: % Retail Value 2015-2018
Table 13 Penetration of Private Label in Hot Drinks by Category: % Retail Value 2013-2018
Table 14 Retail Distribution of Hot Drinks by Format: % Volume 2013-2018
Table 15 Retail Distribution of Hot Drinks by Format and Category: % Volume 2018
Table 16 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2018-2023
Table 17 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2018-2023
Table 18 Forecast Retail Sales of Hot Drinks by Category: Volume 2018-2023
Table 19 Forecast Retail Sales of Hot Drinks by Category: Value 2018-2023
Table 20 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2018-2023
Table 21 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2018-2023
Table 22 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2018-2023
Table 23 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth 2018-2023
Table 24 Forecast Total Sales of Hot Drinks by Category: Total Volume 2018-2023
Table 25 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 2018-2023
Definitions
Sources
Summary 1 Research Sources
Headlines
Prospects
Coffee Culture To Drive Sales During Forecast Period
Nestlé Is Expected To Consolidate Leadership
Regular Instant Coffee Mixes To Record Highest Retail Volume Growth
Competitive Landscape
Nescafé Gold Unveils New Look
Hype in Coffee Mixes Attracts Increasing Number of Players
Shoprite Holdings Sets New Pace in Fresh Ground Coffee Beans
Category Data
Table 26 Retail Sales of Coffee by Category: Volume 2013-2018
Table 27 Retail Sales of Coffee by Category: Value 2013-2018
Table 28 Retail Sales of Coffee by Category: % Volume Growth 2013-2018
Table 29 Retail Sales of Coffee by Category: % Value Growth 2013-2018
Table 30 Retail Sales of Fresh Ground Coffee Pods by Hard vs Soft: % Volume 2013-2018
Table 31 NBO Company Shares of Coffee: % Retail Value 2014-2018
Table 32 LBN Brand Shares of Coffee: % Retail Value 2015-2018
Table 33 Forecast Retail Sales of Coffee by Category: Volume 2018-2023
Table 34 Forecast Retail Sales of Coffee by Category: Value 2018-2023
Table 35 Forecast Retail Sales of Coffee by Category: % Volume Growth 2018-2023
Table 36 Forecast Retail Sales of Coffee by Category: % Value Growth 2018-2023
Headlines
Prospects
Tea To Benefit From Improved Market Conditions
Retail Value Set To Continue Rising at A Faster Rate Than Volume Sales
Green Tea To Record Highest Growth
Competitive Landscape
Value Share Remains Consolidated Amongst Key Players
New Entrants Target Convenience
Joekels Tea Packers Gains Momentum in Green Tea
Category Data
Table 37 Retail Sales of Tea by Category: Volume 2013-2018
Table 38 Retail Sales of Tea by Category: Value 2013-2018
Table 39 Retail Sales of Tea by Category: % Volume Growth 2013-2018
Table 40 Retail Sales of Tea by Category: % Value Growth 2013-2018
Table 41 NBO Company Shares of Tea: % Retail Value 2014-2018
Table 42 LBN Brand Shares of Tea: % Retail Value 2015-2018
Table 43 Forecast Retail Sales of Tea by Category: Volume 2018-2023
Table 44 Forecast Retail Sales of Tea by Category: Value 2018-2023
Table 45 Forecast Retail Sales of Tea by Category: % Volume Growth 2018-2023
Table 46 Forecast Retail Sales of Tea by Category: % Value Growth 2018-2023
Headlines
Prospects
Other Hot Drinks To Post Improved Performance Going Forward
Nestlé To Retain Leadership Due To Increasing Dominance
Pods To Emerge Across Chocolate- and Non-chocolate-based Flavoured Powder Drinks
Competitive Landscape
War Price Takes Place As Competition Intensifies in Chicory-based Drinks
Nestlé Introduces Ricoffy Cappuccino
New Wave of Flavoured Powder Drinks Emerges
Category Data
Table 47 Retail Sales of Other Hot Drinks by Category: Volume 2013-2018
Table 48 Retail Sales of Other Hot Drinks by Category: Value 2013-2018
Table 49 Retail Sales of Other Hot Drinks by Category: % Volume Growth 2013-2018
Table 50 Retail Sales of Other Hot Drinks by Category: % Value Growth 2013-2018
Table 51 NBO Company Shares of Other Hot Drinks: % Retail Value 2014-2018
Table 52 LBN Brand Shares of Other Hot Drinks: % Retail Value 2015-2018
Table 53 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2018-2023
Table 54 Forecast Retail Sales of Other Hot Drinks by Category: Value 2018-2023
Table 55 Forecast Retail Sales of Other Hot Drinks by Category: % Volume Growth 2018-2023
Table 56 Forecast Retail Sales of Other Hot Drinks by Category: % Value Growth 2018-2023
Note: Product cover images may vary from those shown
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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.
Note: Product cover images may vary from those shown
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