Ready-to-Drink (RTD) Coffee & Tea - South Africa

The Ready-to-Drink (RTD) Coffee & Tea market in South Africa has been experiencing significant growth in recent years.

Customer preferences: South African consumers have shown a growing preference for convenient and on-the-go beverage options. The busy lifestyles of urban consumers, coupled with the increasing demand for convenience, have fueled the popularity of Ready-to-Drink (RTD) Coffee & Tea products. These beverages provide a quick and easy solution for consumers who are looking for a refreshing pick-me-up during their busy schedules.

Trends in the market: One of the key trends in the South African RTD Coffee & Tea market is the increasing demand for healthier and natural options. Consumers are becoming more health-conscious and are seeking beverages that are low in sugar and artificial additives. As a result, there has been a surge in the demand for RTD Coffee & Tea products that are made with natural ingredients and have reduced sugar content. Manufacturers have responded to this trend by introducing a wide range of healthier and natural RTD Coffee & Tea options to cater to the evolving consumer preferences. Another trend in the market is the growing popularity of premium RTD Coffee & Tea products. South African consumers are willing to pay a premium for high-quality and indulgent beverages. This has led to the introduction of premium RTD Coffee & Tea brands that offer unique flavors and superior ingredients. The premium segment of the market is expected to continue growing as consumers seek out more premium and sophisticated beverage options.

Local special circumstances: South Africa has a vibrant coffee culture, with a strong tradition of coffee consumption. However, the consumption of RTD Coffee & Tea products is relatively new to the market. This presents both opportunities and challenges for manufacturers operating in the South African RTD Coffee & Tea market. On one hand, there is a growing interest in RTD Coffee & Tea products, driven by the convenience and variety they offer. On the other hand, manufacturers need to educate consumers about the benefits and features of RTD Coffee & Tea products to drive adoption and increase market penetration.

Underlying macroeconomic factors: South Africa is a developing economy with a growing middle class. The increasing disposable income and changing consumer lifestyles have contributed to the growth of the RTD Coffee & Tea market. As consumers become more affluent, they are willing to spend more on premium and convenient beverage options. Additionally, the urbanization of South Africa has led to a rise in the number of working professionals and busy individuals who are seeking convenient and on-the-go beverage options. These factors have created a favorable environment for the growth of the RTD Coffee & Tea market in South Africa.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.