Price inflation, sustainability and channel shifts reshape hot drinks in South Africa
Hot drinks in South Africa is recording rapid retail value growth in 2025, driven primarily by price increases linked to higher input costs for coffee, cocoa and dairy rather than rising consumption, keeping affordability and promotions at the centre of purchasing decisions. Sustainability is becoming a core industry pillar, with leading players and packaging suppliers investing in responsible sourcing, regenerative agriculture and recyclable or compostable formats, while rooibos’ protected origin status reinforces local authenticity. Nestlé maintains category leadership through its broad portfolio and strong retail partnerships, but private label is gaining ground as cost-conscious consumers increasingly trade down to retailer brands that offer acceptable quality at lower prices. Supermarkets remains the primary distribution channel, even as e-commerce posts the fastest growth via services such as Checkers Sixty60 and wider omnichannel strategies. Foodservice growth is moderating as higher-income consumers invest in bean-to-cup machines at home while younger shoppers continue to seek experiential, on-trade coffee occasions.
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Overview:
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:
- Coffee
- Tea
- Other Hot Drinks
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.
The Hot Drinks 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 Hot Drinks in South Africa?
- To what extent are health considerations impacting consumption of Hot Drinks in South Africa?
- What are the traditional preferences in Hot Drinks 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 Hot Drinks in South Africa?
- Which are the leading brands in Hot Drinks in South Africa?
- How are products distributed in Hot Drinks 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 Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in South Africa
Price inflation, sustainability and channel shifts reshape hot drinks in South Africa
KEY DATA FINDINGS
Price hikes push up value sales in hot drinks in 2025
Sustainability comes to the fore
Younger consumers opt for on-trade experiences
Persistent price rises ensure further value growth
Private label set to expand and present greater challenge to branded favourites
E-commerce to see further expansion through omnichannel strategies
Nestlé remains leader of overall hot drinks in South Africa
Private label gains rapid ground
Supermarkets leads distribution as e-commerce outpaces all others in terms of growth
Foodservice sees slowed volume growth in 2025
COUNTRY REPORTS DISCLAIMER
Coffee in South Africa
KEY DATA FINDINGS
Price-driven value growth, home brewing and sustainability drive development in coffee in South Africa
Rapid rises in value sales result from drastic price hikes
Fresh coffee beans drives overall growth thanks to home brewing trend
Continued cost elevation will mean further strong value growth
Premium trends support growing interest in whole bean coffee and cold brew coffee
Sustainability will remain critical focus
Nestlé leads as consumers remain loyal to iconic brands
Private label benefits from inflationary pressures
Supermarkets leads distribution through convenience and favourable pricing
Warehouse clubs shows fastest growth while e-commerce benefits from retail investment in digital presence
Tea in South Africa
KEY DATA FINDINGS
Health-focused innovation and indigenous herbal teas drive growth for tea in South Africa
Tea benefits from cultural role and health-giving properties
Fruit/herbal tea drives growth with green tea also rising
Both value and volume sales set to rise in response to demand for functional hot drinks and cross-category innovation
Developments in agriculture streamline processing methods
Rooibos and honeybush will continue to attract through health profile
National brands leads with diverse product portfolio
Private label enjoys rapid expansion
Convenience and extensive network supports supermarket channel’s continued distribution lead
E-commerce rises fastest with extensive array of niche offerings
Other Hot Drinks in South Africa
KEY DATA FINDINGS
Rising prices, health positioning and Nestlé’s dominance shape other hot drinks in South Africa
Rising prices support value growth but hamper volumes
Flavoured powder drinks and other plant-based hot drinks see rising interest
Health and wellness trends to drive future growth and development
Innovation aligns with lifestyle choices
Possibility of sugar tax prompts players to reformulate offerings
Nestlé dominates with well-known brands amid increased parallel imports
Nestlé remains largely unchallenged in other hot drinks in South Africa
Modern grocery channels dominate distribution
E-commerce sees fastest rise
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Hot Drinks
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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
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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Why buy this report?
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This report originates from Passport, our Hot Drinks research and analysis database.
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