Hot Drinks in South Africa
Euromonitor International's Hot Drinks in South Africa market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, 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 new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 56 | Publication date: Sep 2007
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Green and fruit/herbal tea led the growth
Large growth in tea, particularly for green and fruit/herbal variants, made this the fastest-growing hot drink sector in 2006, and early indications are that this is linked to a higher awareness of the health and wellness implications of product choice. Afforded greater shelf space due to demand, these products are readily available for consumers to add to their existing product repertoire and create opportunity for new market entrants.
Chicory-based hot drinks remain of key importance
Chicory-based hot drinks remain important in South Africa, offering price-conscious consumers a broad range of products to choose from. Consumers show little awareness of product content (chicory versus coffee), and as such future trends are likely to see broader innovation in terms of flavour, which will prevent chicory-based drinks experiencing a decline due to consumers trading-up in line with a general trend towards ‘premiumisation’.
Coffee culture grows to meet emergent-class demand
Strong growth in the middle- and upper-class consumer population is fuelling the demand for innovative and premium products, and is driven by the popularity of foodservice facilities and the so-called ‘coffee culture’. The resultant shift to hot drinks as a sociable beverage has provided the opportunity for broader product sampling by consumers and the opportunity for foodservice brands to launch on the retail market. This is also starting to show increased blurring of the distinctions between premium-flavoured coffee and tea products, most commonly in a powder format.
Domestic consumption of fresh coffee set to grow
Increasing instant coffee prices coupled with better price points on fresh ground coffee will attract more premium coffee consumers to shift to fresh filtered alternatives. This is encouraged by the greater affordability of domestic appliances generally and the beginnings of a trend to extend sociable hot drink consumption into the home environment. Coffee pod options remain small, but steady.
Market remains consolidated
All hot drinks sectors remain highly consolidated, with a few key brands dominating. Nestlé has strong presence in coffee, flavoured powder drinks, malt- and plant-based drinks, while National Brands Limited and Unifoods held the leading places in tea in 2006. The dominance of these three companies has resulted in little innovation and change, but consumer demand is driving the introduction of new brands in premium niche categories. Key acquisitions of brands in 2006 could challenge these leading brands over the forecast period.
Table of contents
HOT DRINKS IN SOUTH AFRICA : MARKET INSIGHT
EXECUTIVE SUMMARY
Green and fruit/herbal tea led the growth
Chicory-based hot drinks remain of key importance
Coffee culture grows to meet emergent-class demand
Domestic consumption of fresh coffee set to grow
Market remains consolidated
KEY TRENDS AND DEVELOPMENTS
Higher living standards has increased demand for aspirational products
Increased health and wellness awareness motivates consumer spending
Burgeoning ‘coffee culture’ promotes new product tasting
High costs of raw materials puts pressure on producers
Acquisitions provide opportunity to fragment sector dominance
MARKET INDICATORS
Table 1 Sales of Hot Drinks by Sector: Volume 2001-2006
Table 2 Sales of Hot Drinks by Sector: Value 2001-2006
Table 3 Sales of Hot Drinks by Sector: % Volume Growth 2001-2006
Table 4 Sales of Hot Drinks by Sector: % Value Growth 2001-2006
Table 5 Hot Drinks Company Shares by Value 2002-2006
Table 6 Hot Drinks Brand Shares by Value 2003-2006
Table 7 Penetration of Private Label by Sector 2002-2006
Table 8 Sales of Hot Drinks by Distribution Format: % Analysis 2001/2006
Table 9 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2006
Table 10 Forecast Sales of Hot Drinks by Sector: Volume 2006-2011
Table 11 Forecast Sales of Hot Drinks by Sector: Value 2006-2011
Table 12 Forecast Sales of Hot Drinks by Sector: % Volume Growth 2006-2011
Table 13 Forecast Sales of Hot Drinks by Sector: % Value Growth 2006-2011
DEFINITIONS
LOCAL COMPANY PROFILES - SOUTH AFRICA
JOEKELS TEA PACKERS - HOT DRINKS - SOUTH AFRICA
Strategic Direction
Key Facts
Summary 1 Joekels Tea Packers cc: Key Facts
Company Background
Production
Summary 2 National Brands Ltd: Production Statistics 2006
Competitive Positioning
NATIONAL BRANDS LTD - HOT DRINKS - SOUTH AFRICA
Strategic Direction
Key Facts
Summary 3 National Brands Ltd: Key Facts
Summary 4 National Brands Ltd: Operational Indicators
Company Background
Production
Summary 5 National Brands Ltd: Production Statistics 2006
Competitive Positioning
Summary 6 National Brands Ltd: Competitive Position 2006
VITAL HEALTH FOODS (PTY) LTD - HOT DRINKS - SOUTH AFRICA
Strategic Direction
Key Facts
Summary 7 Vital Health Foods: Key Facts
Company background
Production
Summary 8 Vital Health Foods: Production Statistics 2006
Competitive positioning
Summary 9 Vital Health Foods: Competitive Position 2005
COFFEE IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 14 Sales of Coffee by Type: Volume 2001-2006
Table 15 Sales of Coffee by Type: Value 2001-2006
Table 16 Sales of Coffee by Type: % Volume Growth 2001-2006
Table 17 Sales of Coffee by Type: % Value Growth 2001-2006
Table 18 Standard Vs Coffee Pods 2004-2006
Table 19 Coffee Company Shares 2002-2006
Table 20 Coffee Brand Shares 2003-2006
Table 21 Foodservice Sales of Coffee by Distribution Format 2001/2006
Table 22 Forecast Sales of Coffee by Type: Volume 2006-2011
Table 23 Forecast Sales of Coffee by Type: Value 2006-2011
Table 24 Forecast Sales of Coffee by Type: % Volume Growth 2006-2011
Table 25 Forecast Sales of Coffee by Type: % Value Growth 2006-2011
TEA IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 26 Sales of Tea by Subsector: Volume 2001-2006
Table 27 Sales of Tea by Subsector: Value 2001-2006
Table 28 Sales of Tea by Subsector: % Volume Growth 2001-2006
Table 29 Sales of Tea by Subsector: % Value Growth 2001-2006
Table 30 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2006
Table 31 Tea Company Shares 2002-2006
Table 32 Tea Brand Shares 2003-2006
Table 33 Forecast Sales of Tea by Subsector: Volume 2006-2011
Table 34 Forecast Sales of Tea by Subsector: Value 2006-2011
Table 35 Forecast Sales of Tea by Subsector: % Volume Growth 2006-2011
Table 36 Forecast Sales of Tea by Subsector: % Value Growth 2006-2011
OTHER HOT DRINKS IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 37 Sales of Other Hot Drinks by Subsector: Volume 2001-2006
Table 38 Sales of Other Hot Drinks by Subsector: Value 2001-2006
Table 39 Sales of Other Hot Drinks by Subsector: % Volume Growth 2001-2006
Table 40 Sales of Other Hot Drinks by Subsector: % Value Growth 2001-2006
Table 41 Other Tea by Type: % Off-trade Volume 2005-2006
Table 42 Other Hot Drinks Company Shares 2002-2006
Table 43 Other Hot Drinks Brand Shares 2003-2006
Table 44 Forecast Sales of Other Hot Drinks by Subsector: Volume 2006-2011
Table 45 Forecast Sales of Other Hot Drinks by Subsector: Value 2006-2011
Table 46 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2006-2011
Table 47 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2006-2011