Following the removal of all travel and regulatory restrictions in early 2022, the largest development within hot drinks in South Africa has been the resumption of foodservice, reaching comparable levels to pre-pandemic demand. However, COVID-19 has permanently altered consumer preferences and behaviours, particularly in terms of where they acquire their hot drinks, which is also resulting in further strong retail demand.
Hot drinks is well positioned to tap into the ongoing health and wellness trend in South Africa, with product innovations, or player acquisitions focusing on vegan or plant-based offerings. However, it is important to note that veganism still represents a fraction of the total demand for hot drinks in the local market.
The competitive environment remains largely unchanged in 2022, with Nestlé South Africa (Pty) Ltd and National Brands Ltd retaining their leading positions. This is based on consumers remaining brand loyal to Ricoffy, Nescafé, Freshpak, Five Roses and Milo, due to their flavour profiles and product consistency over the years.
E-commerce remains the major retail development in 2022, with volume growth of this channel being recorded across coffee, tea and other hot drinks. However, this dynamic performance is being driven by an exceptionally low base, meaning that it remains one of the smaller distribution channels in the local market.
Foodservice sales of hot drinks continue to recover in 2022 following the removal of all COVID-19 regulations and restrictions from early 2022. As a result, footfall has dramatically increased due to pent-up demand and consumer confidence to spend time outside of the home in bars and restaurants.
Leading players of hot drinks are expected to retain their respective positions over the forecast period, due to continual consumer loyalty for their respective brands. This includes Nestlé, which is predicted to maintain its overall leadership through its Nescafé brand, especially regarding instant coffee, due to variations at different price points which allow the player to target a wide range of consumers.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in South Africa with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
If you're in the Hot Drinks industry in South Africa, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This is the aggregation of Coffee, Tea, and Other Hot Drinks.See All of Our Definitions
This report originates from Passport, our Hot Drinks research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!