Non-Alcoholic Drinks - South Africa

The Non-Alcoholic Drinks market in South Africa is experiencing significant growth and development in recent years.

Customer preferences: South African consumers are increasingly seeking healthier beverage options, which has led to a growing demand for non-alcoholic drinks. This shift in consumer preferences can be attributed to a number of factors, including a greater awareness of the health risks associated with consuming sugary drinks and a desire to lead a healthier lifestyle. As a result, there has been a rise in the consumption of low-sugar and zero-calorie beverages, such as flavored water, herbal teas, and natural fruit juices.

Trends in the market: One of the key trends in the Non-Alcoholic Drinks market in South Africa is the increasing popularity of functional beverages. Functional beverages are drinks that offer additional health benefits beyond basic hydration. These beverages often contain added vitamins, minerals, or other ingredients that are believed to have a positive impact on health. This trend can be attributed to the growing interest in health and wellness among South African consumers, as well as the desire for convenient and on-the-go options. Another trend in the market is the rise of premium and artisanal non-alcoholic drinks. South African consumers are becoming more discerning in their beverage choices and are willing to pay a premium for high-quality, unique, and locally sourced products. This trend can be seen in the increased availability of craft sodas, gourmet iced teas, and specialty coffees.

Local special circumstances: The Non-Alcoholic Drinks market in South Africa is also influenced by local cultural and social factors. For example, Rooibos tea, which is native to the region, is a popular non-alcoholic beverage choice among South African consumers. Rooibos tea is known for its health benefits and unique flavor, and it has gained popularity both domestically and internationally. Additionally, South Africa has a strong coffee culture, with a growing number of specialty coffee shops and cafes offering a wide range of non-alcoholic coffee-based beverages.

Underlying macroeconomic factors: The growth of the Non-Alcoholic Drinks market in South Africa can also be attributed to underlying macroeconomic factors. The country has a rapidly growing middle class with increasing disposable income, which has led to a rise in consumer spending on non-essential goods, including beverages. Additionally, the expansion of modern retail channels, such as supermarkets and convenience stores, has made non-alcoholic drinks more accessible to a wider range of consumers. In conclusion, the Non-Alcoholic Drinks market in South Africa is developing in response to changing customer preferences, including a growing demand for healthier options and functional beverages. The market is also influenced by local cultural and social factors, such as the popularity of Rooibos tea and the strong coffee culture. Underlying macroeconomic factors, such as the growing middle class and the expansion of modern retail channels, are also driving the growth and development of the market.

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.