Hot Drinks in South Africa

  • ID: 63916
  • Report
  • Region: Africa, South Africa
  • 33 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
In 2017, demand for hot drinks in South Africa continued to be adversely impacted by the country’s sluggish economic performance. With GDP growth of less than 1%, unemployment reaching 27% and inflation rising by 6%, householders faced a decline in disposable income. With this situation affecting all social classes, consumers gradually shifted to smaller packaging formats and cheaper alternatives, with many embracing the affordability of private label.

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 2013-2017, 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 2022 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

List of Contents and Tables
  • Executive Summary
  • Sluggish Economic Performance Hampers Demand for Hot Drinks
  • Coffee Capsules Gain Ground
  • National Brands Strengthens Its Leading Position
  • Health and Wellness Trend Drives Product Innovation
  • Better Performance Anticipated Over the Forecast Period
  • Market Data
  • Table 1 Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2012-2017
  • Table 2 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2012-2017
  • Table 3 Retail Sales of Hot Drinks by Category: Volume 2012-2017
  • Table 4 Retail Sales of Hot Drinks by Category: Value 2012-2017
  • Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2012-2017
  • Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2012-2017
  • Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2012-2017
  • Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2012-2017
  • Table 9 Total Sales of Hot Drinks by Category: Total Volume 2012-2017
  • Table 10 Total Sales of Hot Drinks by Category: % Total Volume Growth 2012-2017
  • Table 11 NBO Company Shares of Hot Drinks: % Retail Value 2013-2017
  • Table 12 LBN Brand Shares of Hot Drinks: % Retail Value 2014-2017
  • Table 13 Penetration of Private Label in Hot Drinks by Category: % Retail Value 2012-2017
  • Table 14 Retail Distribution of Hot Drinks by Format: % Volume 2012-2017
  • Table 15 Retail Distribution of Hot Drinks by Format and Category: % Volume 2017
  • Table 16 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2017-2022
  • Table 17 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2017-2022
  • Table 18 Forecast Retail Sales of Hot Drinks by Category: Volume 2017-2022
  • Table 19 Forecast Retail Sales of Hot Drinks by Category: Value 2017-2022
  • Table 20 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2017-2022
  • Table 21 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2017-2022
  • Table 22 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2017-2022
  • Table 23 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth 2017-2022
  • Table 24 Forecast Total Sales of Hot Drinks by Category: Total Volume 2017-2022
  • Table 25 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 2017-2022
  • Definitions
  • Sources
  • Summary 1 Research Sources
  • Headlines
  • Prospects
  • Coffee To Benefit From Changing Consumer Lifestyles
  • Intensified Competition Expected Over the Forecast Period
  • Health and Wellness To Continue To Drive Product Innovation
  • Competitive Landscape
  • Jacobs Douwe Egberts Revamps Its Marketing Strategy
  • Millennials Embrace Hug in A Mug
  • Category Data
  • Table 26 Retail Sales of Coffee by Category: Volume 2012-2017
  • Table 27 Retail Sales of Coffee by Category: Value 2012-2017
  • Table 28 Retail Sales of Coffee by Category: % Volume Growth 2012-2017
  • Table 29 Retail Sales of Coffee by Category: % Value Growth 2012-2017
  • Table 30 Retail Sales of Fresh Coffee by Regular vs Decaffeinated: % Volume 2012-2017
  • Table 31 Retail Sales of Fresh Ground Coffee Pods by Hard vs Soft: % Volume 2012-2017
  • Table 32 NBO Company Shares of Coffee: % Retail Value 2013-2017
  • Table 33 LBN Brand Shares of Coffee: % Retail Value 2014-2017
  • Table 34 Forecast Retail Sales of Coffee by Category: Volume 2017-2022
  • Table 35 Forecast Retail Sales of Coffee by Category: Value 2017-2022
  • Table 36 Forecast Retail Sales of Coffee by Category: % Volume Growth 2017-2022
  • Table 37 Forecast Retail Sales of Coffee by Category: % Value Growth 2017-2022
  • Table 38 Forecast Retail Sales of Fresh Coffee by Regular vs Decaffeinated: % Volume 2017-2022
  • Headlines
  • Prospects
  • Consumers To Embrace Healthier Beverages
  • Local Production Expected To Continue To Fall
  • Convenience Likely To Become A Key Tool of Differentiation
  • Competitive Landscape
  • Economic Downturn Affects Demand for Tea
  • Retail Value Sales Continue To Rise Despite Falling Volume Sales
  • New Entrants Target Smaller Niches
  • Category Data
  • Table 39 Retail Sales of Tea by Category: Volume 2012-2017
  • Table 40 Retail Sales of Tea by Category: Value 2012-2017
  • Table 41 Retail Sales of Tea by Category: % Volume Growth 2012-2017
  • Table 42 Retail Sales of Tea by Category: % Value Growth 2012-2017
  • Table 43 NBO Company Shares of Tea: % Retail Value 2013-2017
  • Table 44 LBN Brand Shares of Tea: % Retail Value 2014-2017
  • Table 45 Forecast Retail Sales of Tea by Category: Volume 2017-2022
  • Table 46 Forecast Retail Sales of Tea by Category: Value 2017-2022
  • Table 47 Forecast Retail Sales of Tea by Category: % Volume Growth 2017-2022
  • Table 48 Forecast Retail Sales of Tea by Category: % Value Growth 2017-2022
  • Headlines
  • Prospects
  • Economic Recovery To Boost Demand for Other Plant-based Hot Drinks
  • Hot Chocolate Pods Expected To Gain Momentum
  • Manufacturer Product Innovation To Focus on Value-added Products
  • Competitive Landscape
  • Nestlé Consolidates Its Leading Position in Spite of Various Challenges
  • Nomu Brands Continues To Opens Doors for Premium Hot Chocolate
  • Pick'n'pay Retailers Enters Malt-based Hot Drinks
  • Category Data
  • Table 49 Retail Sales of Other Hot Drinks by Category: Volume 2012-2017
  • Table 50 Retail Sales of Other Hot Drinks by Category: Value 2012-2017
  • Table 51 Retail Sales of Other Hot Drinks by Category: % Volume Growth 2012-2017
  • Table 52 Retail Sales of Other Hot Drinks by Category: % Value Growth 2012-2017
  • Table 53 NBO Company Shares of Other Hot Drinks: % Retail Value 2013-2017
  • Table 54 LBN Brand Shares of Other Hot Drinks: % Retail Value 2014-2017
  • Table 55 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2017-2022
  • Table 56 Forecast Retail Sales of Other Hot Drinks by Category: Value 2017-2022
  • Table 57 Forecast Retail Sales of Other Hot Drinks by Category: % Volume Growth 2017-2022
  • Table 58 Forecast Retail Sales of Other Hot Drinks by Category: % Value Growth 2017-2022
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.
Note: Product cover images may vary from those shown
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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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