Home Food for Thought How is innovation impacting SA's coffee industry?

How is innovation impacting SA’s coffee industry?


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As one of the world’s favourite beverages and major sources of caffeine for many consumers, coffee continues to play an integral role in the daily routines of society, and coffee consumption continues to witness strong growth globally. This is no different in South Africa, with the country’s unique culture and innovative trends helping the country’s coffee industry to carve a successful niche in the global market.

Insight Survey has just released the South African Coffee Landscape Report 2019, a report on the global and local coffee markets based on the latest information and research. It examines the market drivers and restraints as well as global and local market trends to present an insight into the current South African coffee industry environment, market dynamics and its forecasted future.

Kahvé Road believes that innovation is key in their coffee brand.

In 2018, the retail value of the global coffee market was valued at an estimated US$88 billion (approximately R1,25 trillion) and is forecast to continue to grow at a robust compound annual growth rate of 6.5% between 2019 and 2023. Globally, coffee production is also estimated to reach a record 174.5 million 60kg bags in the 2018/2019 season, which represents an increase of 15.6 million 60kg bags compared to the 2017/2018 season.

In terms of global coffee consumption, the three key global markets include the European Union, USA, and Brazil. The European Union continues to be responsible for the highest consumption of coffee globally with 44.0 million 60kg bags of coffee consumed over the 2017/2018 period.

By comparison, the South African coffee market is very small, although it achieved strong consumption growth over the past five years, increasing at a compound annual growth rate of 13.3% from 556,000 60kg bags in 2014/15 to 809,000 60kg bags in 2017/18.

Through South Africa’s blossoming coffee culture, the coffee market has developed to create its own identity. As stated by Iain Evans, event organiser of the Creative Coffee Week, the coffee industry in South Africa has matured and through innovation has created its own identity, carving a niche South African coffee market in the global coffee arena.

This contention is further supported by Rithen Ramlal, co-founder of Kahvé Road, who states that innovation is key in their coffee brand. Kahvé Road’s coffee capsules, for example, provide a unique blend of favours with their berry-flavoured Petra product as well as a Machu Picchu product which has a light citrus flavour.

Innovation is not only limited to coffee, with companies also investing in innovative packaging.

For example, Ella Cappuccino is available in a capsule that consumers only need to shake, remove the seal, and pour into a cup to enjoy. This innovation has created an efficient and convenient on-the-go coffee drink, ideal for the modern-day urban warrior with a high-paced lifestyle.

Kahvé Road’s coffee capsules provide a unique blend of favours with their berry-flavoured Petra product as well as a Machu Picchu product which has a light citrus flavour.

Furthermore, the perfect innovation for sunny South Africa has been the nitro cold brew, which is a cold and unsweetened coffee. Nitro cold brew is typically made by soaking coffee grounds in cool filtered water for 24 hours. Numerous coffee shops in South Africa have started to follow this trend, including Starbucks and Terbodore. Terbodore have gone one step further by marketing sparkling cold brew products that are available in a variety of unique flavours including marula, lemonade, as well as honey bush and orange.

  • The South African Coffee Industry Landscape Report 2019 provides a synthesis of industry research, examining the local and global coffee, with detailed insights into the entire value chain – from manufacturing and importing to retailing, sustainability, pricing analysis, consumption and purchasing trends. For more information, go to www.insightsurvey.co.za or call (021) 045 0202 or (010) 140 5756.”
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Staff Reporter
Staff Reporter
Researched and written by our team of writers and editors.


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