Soft Drinks in South Africa
Euromonitor International's Soft 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: 129 | Publication date: Sep 2008
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
Asian speciality drinks; Bottled water; Carbonates; Concentrates; Fruit/vegetable juice; Functional drinks; RTD coffee; RTD tea
Executive summary
Health and wellness trend continues to gain momentum
The global health and wellness trend is also impacting food and drink markets in South Africa. Many consumers are now opting for healthier products, such as bottled water instead of carbonates. For some consumers, particularly those on upper incomes, but also increasing numbers on middle incomes, price is becoming a secondary factor after health considerations. As a result, manufacturers of soft drinks have introduced new launches or variants of existing products to attract this specific type of consumer. Bottled water, juice and RTD tea have particularly benefited from this trend.
Continued rise of the middle class
South Africa witnessed considerable expansion in the middle and upper income groups towards the end of the review period. Growth in the middle class in South Africa has boosted purchases of products that consumers had previously been unable to afford. While this has not necessarily translated into the purchasing of luxury products, the expansion of the middle class group has meant that a growing number of South Africans are finally acquiring basic necessities such as running water and electricity. Generally, this means there is an increasing number of less price-sensitive consumers at large in South Africa.
South Africans demand value for money
However, despite the expansion of the middle and upper class groups, the majority of consumers in South Africa remain price sensitive and demand value-for-money consumables. As a result, the marketplace still has to cater to consumers who are looking for reasonably priced products. This can be seen in the rise of private label in a number of soft drinks sectors, particularly fruit/vegetable juice and concentrates, as companies compete to market their products at the lowest possible price in order to attract the low income population and the less well-off middle income consumers. Owners of smaller brands in particular, which do not have the resources or big names of players like The Coca-Cola Co, are trying to gain share through competitive pricing. These companies are able to market their products directly at the developing middle classes, which demand value-for-money products. Private label products, which are also appreciated for their value for money, are thus expected to continue gaining sales share over the forecast period.
Convenience a good selling point to better-off consumers
While many consumers in South Africa still remain price sensitive, the upper income group and increasing numbers of people in the middle class are looking for products that offer convenience. Such consumers are generally undeterred by the increased prices of goods sold via forecourts and convenience stores. Products in smaller (single-serve) and/or more convenient packaging that facilitate, for example, on-the-go consumption such as in bottled water, have performed well in this regard.
Soft drinks market to continue growing
Sales are expected to continue growing at healthy rates in the forecast period, with the annual average growth rates in the years to 2012 actually set to be slightly higher in both volume and constant value terms than in the review period. Key drivers will continue to include economic growth, and the resulting higher disposable incomes, and the health and wellness trend. Bottled water, functional drinks and RTD tea will continue to be the most dynamic product areas, with concentrates continuing to struggle.
Table of contents
SOFT DRINKS IN SOUTH AFRICA : MARKET INSIGHT
EXECUTIVE SUMMARY
Health and wellness trend continues to gain momentum
Continued rise of the middle class
South Africans demand value for money
Convenience a good selling point to better-off consumers
Soft drinks market to continue growing
KEY TRENDS AND DEVELOPMENTS
Health and wellness trend continues to influence South African consumers
Disposable income rises alongside growth in South Africa’s middle class
Private label products prove to be popular
MARKET DATA
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2002-2007
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2002-2007
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2002-2007
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2002-2007
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2007
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2007
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2007
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2007
Table 9 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2002-2007
Table 10 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2002-2007
Table 11 Off-trade Sales of Soft Drinks by Sector: Value 2002-2007
Table 12 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2002-2007
Table 13 Company Shares of Off-trade Soft Drinks (as sold) by Volume 2003-2007
Table 14 Brand Shares of Off-trade Soft Drinks (as sold) by Volume 2004-2007
Table 15 Company Shares of Off-trade Soft Drinks (RTD) by Volume 2003-2007
Table 16 Brand Shares of Off-trade Soft Drinks (RTD) by Volume 2004-2007
Table 17 Company Shares of Off-trade Soft Drinks by Value 2003-2007
Table 18 Brand Shares of Off-trade Soft Drinks by Value 2004-2007
Table 19 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2007
Table 20 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2007-2012
Table 21 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2007-2012
Table 22 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2007-2012
Table 23 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2007-2012
Table 24 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2007-2012
Table 25 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2007-2012
Table 26 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2007-2012
Table 27 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2007-2012
APPENDIX
Table 28 Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2002-2007
Table 29 Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2002-2007
Table 30 Company Shares of Liquid Concentrates (as sold) by Off-trade Volume 2003-2007
Table 31 Brand Shares of Liquid Concentrates (as sold) by Off-trade Volume 2004-2007
Table 32 Company Shares of Powder Concentrates (as sold) by Off-trade Volume 2003-2007
Table 33 Brand Shares of Powder Concentrates (as sold) by Off-trade Volume 2004-2007
Table 34 Company Shares of Concentrates (RTD) by Off-trade Volume 2003-2007
Table 35 Brand Shares of Concentrates (RTD) by Off-trade Volume 2004-2007
Table 36 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2007-2012
Table 37 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2007-2012
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - SOUTH AFRICA
CERES FRUIT JUICES (PTY) LTD - SOFT DRINKS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Ceres Fruit Juices (Pty) Ltd: Key Facts
Summary 3 Pioneer Foods Group: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Ceres Fruit Juices (Pty) Ltd: Competitive Position 2007
NATIONAL BRANDS LTD - SOFT DRINKS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 AVI Ltd: Key Facts
Summary 6 AVI Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 National Brands Ltd: Competitive Position 2007
QUALITY BEVERAGES - SOFT DRINKS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Quality Beverages: Key Facts
Summary 9 Quality Beverages: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Quality Beverages: Competitive Position 2007
TIGER BRANDS LTD - SOFT DRINKS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Tiger Brands Ltd: Key Facts
Summary 12 Tiger Brands Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Bromor Foods (Pty) Ltd: Competitive Position 2007
CARBONATES IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 38 Off-trade Sales of Carbonates by Subsector: Volume 2002-2007
Table 39 Off-trade Sales of Carbonates by Subsector: Value 2002-2007
Table 40 Off-trade Sales of Carbonates by Subsector: % Volume Growth 2002-2007
Table 41 Off-trade Sales of Carbonates by Subsector: % Value Growth 2002-2007
Table 42 On-trade vs Off-trade Sales of Carbonates: Volume 2002-2007
Table 43 On-trade vs Off-trade Sales of Carbonates: Value 2002-2007
Table 44 On-trade vs Off-trade Sales of Carbonates: % Volume Growth 2002-2007
Table 45 On-trade vs Off-trade Sales of Carbonates: % Value Growth 2002-2007
Table 46 Company Shares of Carbonates by Off-trade Volume 2003-2007
Table 47 Brand Shares of Carbonates by Off-trade Volume 2004-2007
Table 48 Company Shares of Carbonates by Off-trade Value 2003-2007
Table 49 Brand Shares of Carbonates by Off-trade Value 2004-2007
Table 50 Forecast Off-trade Sales of Carbonates by Subsector: Volume 2007-2012
Table 51 Forecast Off-trade Sales of Carbonates by Subsector: Value 2007-2012
Table 52 Forecast Off-trade Sales of Carbonates by Subsector: % Volume Growth 2007-2012
Table 53 Forecast Off-trade Sales of Carbonates by Subsector: % Value Growth 2007-2012
FRUIT/VEGETABLE JUICE IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 54 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2002-2007
Table 55 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2002-2007
Table 56 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2002-2007
Table 57 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2002-2007
Table 58 Leading Flavours for 100% Juice: % Volume Breakdown 2003-2007
Table 59 Leading Flavours for Nectars (25-99% Juice): % Volume Breakdown 2003-2007
Table 60 Leading Flavours for Juice Drinks (up to 24% Juice): % Volume Breakdown 2003-2007
Table 61 % Share of Smoothies in 100% Juice and Nectars (25-99% Juice): Off-trade Value 2006
Table 62 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2003-2007
Table 63 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2004-2007
Table 64 Company Shares of Fruit/Vegetable Juice by Off-trade Value 2003-2007
Table 65 Brand Shares of Fruit/Vegetable Juice by Off-trade Value 2004-2007
Table 66 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2007-2012
Table 67 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2007-2012
Table 68 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2007-2012
Table 69 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2007-2012
BOTTLED WATER IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 70 Off-trade Sales of Bottled Water: Volume 2002-2007
Table 71 Off-trade Sales of Bottled Water: Value 2002-2007
Table 72 Off-trade Sales of Bottled Water: % Volume Growth 2002-2007
Table 73 Off-trade Sales of Bottled Water: % Value Growth 2002-2007
Table 74 Company Shares of Bottled Water by Off-trade Volume 2003-2007
Table 75 Brand Shares of Bottled Water by Off-trade Volume 2004-2007
Table 76 Company Shares of Bottled Water by Off-trade Value 2003-2007
Table 77 Brand Shares of Bottled Water by Off-trade Value 2004-2007
Table 78 Forecast Off-trade Sales of Bottled Water: Volume 2007-2012
Table 79 Forecast Off-trade Sales of Bottled Water: Value 2007-2012
Table 80 Forecast Off-trade Sales of Bottled Water: % Volume Growth 2007-2012
Table 81 Forecast Off-trade Sales of Bottled Water: % Value Growth 2007-2012
FUNCTIONAL DRINKS IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 82 Off-trade Sales of Functional Drinks by Subsector: Volume 2002-2007
Table 83 Off-trade Sales of Functional Drinks by Subsector: Value 2002-2007
Table 84 Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2002-2007
Table 85 Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2002-2007
Table 86 Company Shares of Functional Drinks by Off-trade Volume 2003-2007
Table 87 Brand Shares of Functional Drinks by Off-trade Volume 2004-2007
Table 88 Company Shares of Functional Drinks by Off-trade Value 2003-2007
Table 89 Brand Shares of Functional Drinks by Off-trade Value 2004-2007
Table 90 Forecast Off-trade Sales of Functional Drinks by Subsector: Volume 2007-2012
Table 91 Forecast Off-trade Sales of Functional Drinks by Subsector: Value 2007-2012
Table 92 Forecast Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2007-2012
Table 93 Forecast Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2007-2012
CONCENTRATES IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 94 Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2002-2007
Table 95 Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2002-2007
Table 96 Off-trade Sales of Concentrates by Subsector: Value 2002-2007
Table 97 Off-trade Sales of Concentrates by Subsector: % Value Growth 2002-2007
Table 98 Company Shares of Concentrates by Off-trade Value 2003-2007
Table 99 Brand Shares of Concentrates by Off-trade Value 2004-2007
Table 100 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2007-2012
Table 101 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2007-2012
Table 102 Forecast Off-trade Sales of Concentrates by Subsector: Value 2007-2012
Table 103 Forecast Off-trade Sales of Concentrates by Subsector: % Value Growth 2007-2012
RTD TEA IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 104 Off-trade Sales of RTD Tea by Subsector: Volume 2002-2007
Table 105 Off-trade Sales of RTD Tea by Subsector: Value 2002-2007
Table 106 Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2002-2007
Table 107 Off-trade Sales of RTD Tea by Subsector: % Value Growth 2002-2007
Table 108 Leading Flavours for RTD Tea: % Volume Breakdown 2005-2007
Table 109 Company Shares of RTD Tea by Off-trade Volume 2003-2007
Table 110 Brand Shares of RTD Tea by Off-trade Volume 2003-2007
Table 111 Company Shares of RTD Tea by Off-trade Value 2003-2007
Table 112 Brand Shares of RTD Tea by Off-trade Value 2004-2007
Table 113 Forecast Off-trade Sales of RTD Tea by Subsector: Volume 2007-2012
Table 114 Forecast Off-trade Sales of RTD Tea by Subsector: Value 2007-2012
Table 115 Forecast Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2007-2012
Table 116 Forecast Off-trade Sales of RTD Tea by Subsector: % Value Growth 2007-2012
RTD COFFEE IN SOUTH AFRICA
HEADLINES