Executive Summary

Mar 2019
Value sales of hot drinks continue to increase despite lower volume

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.

Private label gains momentum across categories

Due to shrinking disposable incomes, increased sensitivity to prices was recorded amongst South Africans during the review period. As a result, many demonstrated less loyalty to branded products, with increasing interest in affordable private label.

Nestlé South Africa leads hot drinks

Nestlé South Africa (Pty) Ltd consolidated its leadership of hot drinks, despite intensified competition recorded during the review period. This was due to the equity and affordability of its products across malt-based and flavoured powder drinks.

Innovation targets niche markets in 2018

Innovation was often used as a key differentiation tool across the category, with new releases targeting a niche audience. An example could be taken from Joekels Tea Packers (Pty) Ltd, which introduced Tetley green tea, offered in the flavours of mint, apple and lemon.

Upward trend to be recorded in hot drinks going forward

Retail sales for hot drinks are expected to rise in both volume and current value terms. The trend will be supported by an improved economic performance, with consumers loosening their belts.

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Hot Drinks in South Africa

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Overview

Discover the latest market trends and uncover sources of future market growth for the Hot Drinks industry in South Africa with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Hot Drinks industry in South Africa, our research will save you time and money while empowering you to make informed, profitable decisions.

When you purchase this report, you also get the data and the content from these category reports in South Africa for free:

The Hot Drinks in South Africa market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Hot Drinks in South Africa?
  • What are the major brands in South Africa?
  • How has an increasing desire for heart healthy or fiber-added drinks affected the hot drinks industry in South Africa?
  • Are manufacturers changing packaging sizes and formats to fit an on-the-go lifestyle?
  • How have changing demographics (for example an aging population) affected the hot drinks market in South Africa?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Hot Drinks market research database.

Hot Drinks in South Africa

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

Coffee in South Africa

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

Other Hot Drinks in South Africa

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 37 Retail Sales of Other Hot Drinks by Category: Volume 2013-2018
Table 38 Retail Sales of Other Hot Drinks by Category: Value 2013-2018
Table 39 Retail Sales of Other Hot Drinks by Category: % Volume Growth 2013-2018
Table 40 Retail Sales of Other Hot Drinks by Category: % Value Growth 2013-2018
Table 41 NBO Company Shares of Other Hot Drinks: % Retail Value 2014-2018
Table 42 LBN Brand Shares of Other Hot Drinks: % Retail Value 2015-2018
Table 43 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2018-2023
Table 44 Forecast Retail Sales of Other Hot Drinks by Category: Value 2018-2023
Table 45 Forecast Retail Sales of Other Hot Drinks by Category: % Volume Growth 2018-2023
Table 46 Forecast Retail Sales of Other Hot Drinks by Category: % Value Growth 2018-2023

Tea in South Africa

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 47 Retail Sales of Tea by Category: Volume 2013-2018
Table 48 Retail Sales of Tea by Category: Value 2013-2018
Table 49 Retail Sales of Tea by Category: % Volume Growth 2013-2018
Table 50 Retail Sales of Tea by Category: % Value Growth 2013-2018
Table 51 NBO Company Shares of Tea: % Retail Value 2014-2018
Table 52 LBN Brand Shares of Tea: % Retail Value 2015-2018
Table 53 Forecast Retail Sales of Tea by Category: Volume 2018-2023
Table 54 Forecast Retail Sales of Tea by Category: Value 2018-2023
Table 55 Forecast Retail Sales of Tea by Category: % Volume Growth 2018-2023
Table 56 Forecast Retail Sales of Tea by Category: % Value Growth 2018-2023

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