PROSPECTS AND OPPORTUNITIES
High foodservice margins predicted to result in expansion of outlets
Coffee shops remain profitable in South Africa, despite local economic challenges and low levels of consumer disposable income. Much of this is a result of high margins, which allows manufacturers to expand their operations to additional branches, along with a willingness of consumers to purchase based on the convenience factor.
Dynamic growth predicted for fresh ground coffee pods
Affluent South African consumers are projected to remain loyal to more expensive formats, including fresh ground coffee pods. This is expected to ensure stable demand for the likes of Nespresso, as well as smaller players such as Espresto.
Cold brew and iced coffee expected to gain traction over forecast period
Cold brew coffee will likely experience dynamic growth in South Africa over the forecast period, as increasing numbers of consumers become willing to experiment with their caffeine intake, as well as the entirely different flavour profile that cold brew provides. This trend emerged in the local market with the introduction of RTD coffee, which is experiencing stable consumer demand, albeit at low volumes.
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Overview:
Understand the latest market trends and future growth opportunities for the Coffee 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.
If you're in the Coffee 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.
The Coffee in South Africa report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Coffee in South Africa?
- To what extent are health considerations impacting consumption of Coffee in South Africa?
- What are the traditional preferences in Coffee in South Africa? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Coffee in South Africa?
- Which are the leading brands in Coffee in South Africa?
- How are products distributed in Coffee in South Africa?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Coffee?
- Where is future growth expected to be most dynamic?
Coffee in South Africa - Category analysis
KEY DATA FINDINGS
High unit price of coffee results in dynamic value growth
Additional functional benefits on the rise in coffee offerings
Private label continues to enjoy a positive performance in the category
High foodservice margins predicted to result in expansion of outlets
Dynamic growth predicted for fresh ground coffee pods
Cold brew and iced coffee expected to gain traction over forecast period
Hot Drinks in South Africa - Industry Overview
Hot drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for hot drinks?
DISCLAIMER
The following categories and subcategories are included:
Coffee
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
Coffee
This is the aggregation of fresh coffee and instant coffee. Please note that foodservice sales of coffee are volumes sold to the on-trade (foodservice) sector and not those sold to the consumer.
See all of our definitionsWhy 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 report originates from Passport, our Coffee research and analysis database.
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