Skip to main content

Energy-drinks market in South Africa grows substantially

| Research tools

Recent findings released by BMi Research have revealed that the ready-to-drink (RTD) energy-drinks market enjoyed substantial growth in 2015, albeit at a lower rate than was seen in the last five years. The RTD energy-drinks volume grew to 153,1 million litres, increasing by 25% from 2014 to 2015.

Traditionally the last part of a year tends to show good sales increases due to the warmer weather, but an underperforming economy in the second quarter of 2015, as well as a volatile and weakened rand exchange rate could have been the drivers of slower growth in the last part of 2015.

The unfavourable import conditions, multiplied by strong competition from numerous RTD energy-drink brands entering the market in previous years, saw a substantial number of players leaving the market in 2015. However, some of the imported brands do not completely leave the market and it is likely they will be brought back into the country when the rand strengthens and exchange rates improve for importers.

The pricing per litre for energy drinks has shown increased year-on-year growth for the last three years. Although this category has a much higher price per litre than other non-alcoholic beverage categories, consumers did not switch to alternative beverage categories.   

Gauteng still dominates the regional distribution of energy drinks with just over half of the total volume distributed to this region via top-end retail, wholesale and forecourts. The Eastern Cape, North West Province and Mpumalanga all presented positive growths, showing a shift in focus of players to smaller regions where they find there to be lesser competition.

To view full report click here


Related Articles

Three-day weekends ahead? South Africa’s four-d...

By: Xolile Mtembu - IOL The results for the South African trial of the four-day work week model are out and they show a resounding success among companies who participated.

Checkers killing Pick n Pay in home delivery

Daily Investor Pick n Pay CEO Sean Summers said they started home delivery two decades ago but that Checkers took the lead through their Sixty60 service.

How much money cashiers, trolley collectors, an...

Employment and Labour Minister Thulas Nxesi gazetted the new sectoral determinations for workers in South Africa’s wholesale and retail sectors in the first quarter of the year, which reveals the minimum baseline wage for workers in the sector for...

Woolworths bosses score massive R255 million pa...

Woolworths released its annual remuneration report for 2023 – revealing how much the retailer’s top execs earned over the last financial year.

Cheapest retailer for a full basket of grocerie...

A recent consumer report compared the prices of 23 grocery items across four of South Africa’s most popular food retailers – revealing Shoprite as the cheapest option.