Soft drinks in 2024: The big picture
Two major trends remain the determinants of demand for soft drinks in South Africa in 2024, namely health and wellness, and macroeconomic challenges, including declining disposable incomes derived from rising living costs. To address the health and wellness trend, several manufacturers have launched products tailored to this audience.
2024 key trends
Due to a decline in local consumers’ disposable incomes, compounded by inflation and rising fuel costs, many South Africans are choosing soft drinks that offer quality at lower prices, often preferring private label based on competitive pricing at minimal cost to quality. Additionally, South Africans are also conducting their own independent research on soft drinks, as they become increasingly conscious of what they consume.
Competitive landscape
Coca-Cola South Africa (Pty) Ltd maintains its dominance of carbonates in both off-trade volume and value share terms. However, local players and international competitors are placing pressure on the leader.
Retailing developments
Brand loyalty in South African soft drinks remains relatively stable, despite the increase in private label offerings and their improved flavour profiles, to align with consumer demand. Considering this, the majority of South Africans are looking to reduce the monthly costs of consumables (including soft drinks), whereby supermarkets are adapting to these demands, in combination with similar discounts, thereby driving up volumes.
Foodservice vs retail split
Off-trade continues to dominate demand for soft drinks in South Africa, and despite the recovery in volume terms of on-trade in line with greater mobility outside of the home, off-trade continues to record a positive performance in 2024. With the increase in soft drinks prices as a result of manufacturing input costs, consumers are making more cost-effective choices in their drink selections where available.
What next for soft drinks?
Over the forecast period, a sugar tax increase is expected, as it has the dual purpose of reducing comorbidities such as diabetes and heart disease, through reducing sugar in South African diets, as well as being a major generator of tax. In addition, while the current sugar tax has had positive health effects supported by research, South Africa is considered one of the unhealthiest countries in Sub-Saharan Africa, providing further justification for the government to increase the tax.
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Overview:
Understand the latest market trends and future growth opportunities for the Soft 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:
- Bottled Water
- Carbonates
- Concentrates
- Juice
- RTD Coffee
- RTD Tea
- Energy Drinks
- Sports Drinks
- Asian Speciality Drinks
If you're in the Soft 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 Soft 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 Soft Drinks in South Africa?
- To what extent are health considerations impacting consumption of Soft Drinks in South Africa?
- How are changing social attitudes and legislation (eg sugar tax) reshaping demand and consumption?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Soft Drinks in South Africa?
- Which are the leading brands in Soft Drinks in South Africa?
- What potential exists for multinational or domestic soft drinks companies to expand in South Africa?
- How are products distributed in Soft Drinks in South Africa?
- How is the rise of e-commerce changing the retail and competitive landscape?
- How have home seclusion and social distancing measures following COVID-19 impacted sales of Soft Drinks?
- How are sustainability issues, such as environmentally-friendly packaging, legislation on recyclability, or the amount of plastic in bottles, impacting the soft drinks industry?
- Where is future growth expected to be most dynamic?
Soft Drinks in South Africa
Soft drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for soft drinks?
Fountain sales in South Africa
DISCLAIMER
Bottled Water in South Africa
KEY DATA FINDINGS
Stable demand for bottled water due to declining tap water quality
Local manufacturer Manzi Water opens 105 new stores
Bottled water remains a highly saturated competitive landscape
Functional bottled water to gain further momentum, driven by market opportunities
Bottled water “specials” expected to increase across pack sizes
Private label bottled water set to gain greater share
Carbonates in South Africa
KEY DATA FINDINGS
Demand for larger pack sizes rise, as consumers strive for value
Coca-Cola retains leadership despite increasing competition
Varun Beverages acquires BevCo, to the benefit of PepsiCo
Local consumer base set to increasingly adopt healthier habits
Expected sugar tax increase will force manufacturers and consumers to adapt
Brand consolidation of major players expected to continue into the forecast period
Concentrates in South Africa
KEY DATA FINDINGS
Affordability drives stable demand for concentrates in South Africa
Health concerns prevent more significant growth
Oros targets lower-income consumers through pricing and brand loyalty
Potential inclusion of concentrates in sugar tax may drive significant changes
Sustainability impacted by consumer preferences and long-term storage
Emergence of vegetable juice concentrates, but likely to remain a niche
Concentrates Conversions
Juice in South Africa
KEY DATA FINDINGS
Commodity price increases place pressure on orange-based juice
Rising health concerns due to presence of unwanted substances and added sweeteners
Stable growth for premium juice but unit price prevents high volumes
Possible amendment to sugar tax poses challenge for juice producers
Cold-pressed juice set to grow, based on higher nutritional value
Premium versus long-term packaging
RTD Tea in South Africa
KEY DATA FINDINGS
Happy Culture strengthens leadership of kombucha due to expansion efforts
Subdued growth for reduced sugar still RTD tea
Limited competition creates opportunities for new entrants
Improvements to reduced sugar options expected to boost sales
Rooibos as a base tea projected to gain traction
Effective marketing predicted to be a key success factor for growth
Energy Drinks in South Africa
KEY DATA FINDINGS
Off-trade volume growth of energy drinks slows, but remains positive
Younger generations drive growth, driven by social events and sober curiosity
Numerous brand innovations and challenges
Reduced sugar energy drinks to gain share over forecast period
Change in label regulations projected to overhaul energy drinks packaging
Saturation of energy drinks expected to subdue price increases
Sports Drinks in South Africa
KEY DATA FINDINGS
Several new brands enter sports drinks to intensify competition
Energade remains leading brand, but is challenged
Prime Hydration sees significant price drop
Stagnant demand for sports drinks over the forecast period
Ingredients to be increasingly scrutinised by consumers and health associations
Product label regulation changes expected, with manufacturers needing to adapt
The following categories and subcategories are included:
Soft Drinks
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- Carbonated Natural Mineral Bottled Water
- Carbonated Spring Bottled Water
- Carbonated Purified Bottled Water
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- Still Flavoured Bottled Water
- Sparkling Flavoured Bottled Water
- Functional Bottled Water
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- Still Natural Mineral Bottled Water
- Still Spring Bottled Water
- Still Purified Bottled Water
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- Regular Carbonates
- Reduced Sugar Carbonates
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- Regular Cola Carbonates
- Reduced Sugar Cola Carbonates
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- Regular Non-Cola Carbonates
- Reduced Sugar Non-Cola Carbonates
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- Regular Lemonade/Lime
- Reduced Sugar Lemonade/Lime
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- Regular Tonic Water/Mixers/Other Bitters
- Reduced Sugar Tonic Water/Mixers/Other Bitters
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- Regular Orange Carbonates
- Reduced Sugar Orange Carbonates
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- Regular Other Non-Cola Carbonates
- Reduced Sugar Other Non-Cola Carbonates
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- Liquid Concentrates
- Powder Concentrates
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- Not from Concentrate 100% Juice
- Reconstituted 100% Juice
- Coconut and Other Plant Waters
- Juice Drinks (up to 24% Juice)
- Nectars
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- RTD Coffee
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- Carbonated RTD Tea and Kombucha
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- Regular Still RTD Tea
- Reduced Sugar Still RTD Tea
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- Regular Energy Drinks
- Reduced Sugar Energy Drinks
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- Regular Sports Drinks
- Reduced Sugar Sports Drinks
- Asian Speciality Drinks
Soft Drinks
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.
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This report originates from Passport, our Soft Drinks research and analysis database.
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