South Africa’s juice industry is worth R7.9 billion in annual sales. This is according to new data released by the world’s leading consumer intelligence company, NIQ.
Speaking at the recently hosted global 2023 IFU conference, NIQ Sub-Sahara commercial lead advanced analytics Kobus Eksteen said the South African juice market grew by 9.5% in the 12 months to the end of March 2023.
“Still, fruit juice continues to dominate the segment with a 75% share of the category, and its share of the category is relatively stable year on year.
“Interestingly, the still water category has seen significant sales gains driven by load shedding, and its inflation is well below average,” he said.
Inflation impact
Meanwhile, the still juice segment saw double-digit inflation while carbonated soft drinks and energy drink inflation was far lower at 5-6%.
“In comparison, fruit juice is one of the most price-sensitive beverage categories and is seen as a luxury premium price item for the higher LSM (Living Standards Measure) consumers who are feeling the financial squeeze.”
NIQ’s benchmark household panel data also showed that carbonated soft drinks are present in 9 out of every 10 homes, while long-life juice is in 2 out of 3 homes and short-life juice is often consumed outside of the home.
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Traditional on tap
So where are consumers enjoying their favourite juices? According to data, grocery stores account for 77% of juice sales, and informal trade for 17%. However, informal trade delivered 35% of the growth in the latest year and is gaining importance.
“This is a new era for [informal] trade in South Africa and is being driven by these outlets’ enhanced price competitiveness.
“For the first time, [informal] trade is priced the same or even cheaper than mainstream trade on a lot of important items, creating a far more competitive value proposition for consumers,” Eksteen said.
In addition, consumers do not have to travel for these cost gains which also reduces their transport cost burden. Consumers are therefore shopping more frequently at informal trade outlets such as spaza shops as they attempt to stay closer to home.
Sizes and flavours
Looking at the physical consumption of juice in terms of pack sizes, NIQ data shows that small packs (<1L) account for 38.3% of total sales and are driving value growth.
When it comes to taste preferences, South Africans’ favourite flavours include apple, tropical and breakfast blend, while more than 190 other flavour combinations make up a small percentage of sales.
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