Country Profile: Hot Drinks Sector in South Africa
South African Hot Drinks Sector accounted for a volume share of just over 0.5% of the global market and nearly 16% of the regional (Middle East & Africa) market in 2016. The sector was valued at over US$800 million in 2016 and is forecast to grow at a CAGR of nearly 1.5% during 2016-2021. Growth in the sector is driven by a growing coffee and tea culture in the country, particularly Rooibos tea, which is being positioned as healthier alternative to caffeine-free beverages which is contributing to the growth of the sector. Per capita consumption of Hot Drinks products stood at just over 1kg, which is lower when compared to the global and Middle East & Africa levels of 2.17kg and 1.9kg, respectively, in 2016.
Hot Coffee was the largest category with value sales of over US$400 million in 2016. Other Hot Drinks as a category is expected to grow at the fastest at a CAGR of around 3.5% compared to Hot Coffee (nearly 1%) and Hot Tea (around 1.7%) during 2016-2021.
Hypermarkets & Supermarkets accounts for a leading share in the distribution of Hot Drinks in South Africa. It accounted for a value share of nearly 60% in 2016, followed by Convenience Stores with a share close to 30%. On-trade transactions held a value share of about 7% in the same year. Paper & Board is the most commonly used package material in the South African Hot Drinks Sector. In 2016, it accounted for a share of more than 50%, followed by Flexible Packaging and Rigid Metal with shares of nearly 32% and around 6% respectively.
Joko is the leading brand in the South African Hot Drinks Sector. It held a value share of about 8% in 2016, while the top five brands in the sector accounted for a combined share of around 32% in the same year. The consumption of Hot Drinks is high among the male population in South Africa. Moreover, consumption is particularly high among those consumers who received Upper Secondary education. In terms of consumption by age group, Older Young Adults and Early Young Adults together accounted for nearly 38% share in 2016.
The report Country Profile: Hot Drinks Sector in South Africa, provides insights on high growth markets to target, trends in the usage of packaging materials, category level distribution channel data and market share of brands.
In particular, this report provides the following -
Market data: Overall market value and volume data with growth analysis for 2011-2021. The overall market value and volume included in the report is split on the basis of On-trade and Off-trade
Category coverage: Value and growth analysis for Hot Coffee, Hot Tea and Other Hot drinks with inputs on individual category share within each market and the change in their market share forecast for 2016-2021
Leading players: Market share of brands and private labels, including private label growth analysis from 2011-2016
Distribution data: Percentage of sales within each market through distribution channels such as On-trade, Hypermarkets & Supermarkets, Convenience Stores, Food & Drinks Specialists, eRetailers and others
Packaging data: Consumption breakdown for package materials and pack types in each market, in terms of percentage share of number of units sold. Package material data for Glass, Flexible Packaging, Paper & Board, Rigid Plastics, Rigid Metal and others; pack type data for: Carton, Bag/Sachet, Tub, Bottle, Jar and Stand Up Pouch.
Companies mentioned in this report: Associated British Foods Plc , AVI Limited , Cadbury Plc , Caturra Coffee Company PTY (Ltd) , D.E Master Blenders 1753 N.V. , Kraft Foods , Mondelez International Inc , Nestle, Sara Lee Corporation, Tchibo GmbH, Unilever, Vital Health Foods (Pty) Ltd
The Hot Drinks sector in South Africa is forecast to grow at a CAGR of 1.4% in value terms during 2016-2021 .
Hot Coffee is the largest market by value, while Hot Tea leads in volume terms in the South African Hot Drinks sector.
Per capita consumption of Hot Tea is higher compared to other markets in South Africa .
Hypermarkets & Supermarkets accounts for the leading share in the distribution of Hot Drinks in South Africa .
Joko is the leading brand in both value and volume terms in the South African Hot Drinks sector .
Paper & Board is the most commonly used package material in the South African Hot Drinks sector.
Reasons to buy
Identify high potential categories and explore further market opportunities based on detailed value and volume analysis
Existing and new players can analyze key distribution channels to identify and evaluate trends and opportunities
Gain an understanding of the total competitive landscape based on detailed brand share analysis to plan effective market positioning
Access the key and most influential consumer trends driving Hot Drinks products consumption, and how they influence consumer behavior in the market which will help determine the best audiences to target
Our team of analysts have placed a significant emphasis on changes expected in the sector that will provide a clear picture of the opportunities that can be tapped over the next five years, resulting in revenue expansion
The packaging analysis report helps manufacturers, in identifying the most commonly used packaging materials in the sector
Analysis on key macro-economic indicators such as GDP per capita, population (overall and breakdown by age), and consumer price index. It also covers a comparative analysis of political, economic, socio-demographic, and technological indicators (PEST) across 50 countries.