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Is the concentrates market 'hydrating' South African consumers?

| Supplier news

On a global scale, concentrate offers a wide variety of beverage options to consumers. This coupled with rising consumer health-consciousness, longer shelf life and the cost-effectiveness of concentrates in comparison to other soft drink options is set to continue fuelling the demand for concentrates globally and in South Africa.

However, with the ever-looming Sugar Tax now also imposed on this market sector, it remains to be seen whether concentrates will continue to thrive in South Africa.
Insight Survey’s latest SA Concentrates Industry Landscape Report 2018 deliberates the global and local concentrates markets based on the latest information and research. It examines market drivers and challenges, as well as global and local market trends to present an objective insight into the environment, market dynamics, and future of the South African concentrates industry. 

Globally, the concentrates market has continued to demonstrate its strength with sales of 2.9 billion litres globally in 2017. Regionally, Europe held the largest market share in 2017, accounting for 35% of the market, and is expected to hold onto its lead position over the forecast period up to 2025. 

Following the global growth trend, the value of the concentrates market in South Africa demonstrated strong growth between 2012 and 2017, achieving a compound annual growth rate (CAGR) of 13.1% over the period.

Source:  Graphics by Insight Survey
Source: Euromonitor Graphics by Insight Survey
click to enlarge

Liquid concentrates currently dominate the overall concentrates market and have achieved almost double the compound annual growth rate compared to powder concentrates, over the period 2012-2017, as shown in the graph above.

The growth of the SA concentrates market, both current and forecasted, will be largely driven by product innovation in terms of flavour differentiation and the expansion of portfolios to include healthier options to accommodate the ever-changing needs of consumers. Interestingly, the demand for private label products is set to increase due to the affordability and diversity of these products over the next five years. 

On the other side of the coin, the most prominent factor currently impacting on the market is the challenging economic environment which is set to negatively impacted the local concentrates market as the retail environment has become increasingly challenging. Furthermore, the introduction of Sugar Tax currently poses a significant threat to all sugary beverage markets and is expected to negatively impact future growth. The ever-looming health trend is also expected to damper market growth as more and more consumers are deeming concentrates unhealthy due to perceptions of their high sugar content. 

Nevertheless, it remains clear from the research that the local concentrates market will continue to hydrate South African consumers for the foreseeable future, despite current market challenges. 

The South African Concentrates Industry Landscape Report 2018 (80 pages) provides a dynamic synthesis of industry research, examining the concentrates market from a uniquely holistic perspective, with detailed insights into the entire value chain – chain – from manufacturing to retailing, market size trends, industry trends, industry drivers and challenges, competitor and pricing analysis. 

Some key questions the report will help you to answer:
  • What are the key factors that are driving and restraining the growth of the local and global markets?
  • What are the latest South African concentrates industry trends, drivers and challenges?
  • What are the current market dynamics (key brands, size, value, volumes) of the SA concentrates industry?
  • Who are the key manufacturing and retail players in the SA concentrates industry? 
  • What are the prices of popular concentrates brands across South African retail outlets?
Please note that the 80-page report is available for purchase for R25,000 (excluding VAT). Alternatively, individual sections can be purchased for R9,000 (excluding VAT). For additional information simply contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. or directly on (0)10 140-5756 or (0)21 045-0202.

For a full brochure please go to: South African Concentrates Industry Landscape Report 2018
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