Both the global and local Concentrates markets continue to look diluted, with weak market forecasts on the horizon. Various challenges, such as the rising awareness of health and wellness amongst consumers, the impact of the global COVID-19 pandemic, and country-specific sugar tax implementations are expected to continue to water down market growth over the next few years. However, numerous trends, such as the increased focus on adult-focused cordials and syrups, are currently gaining momentum across the globe, which the industry is hoping will stir up growth in the market.
Insight Survey’s latest SA Concentrates/Dilutables Industry Landscape Report 2020 carefully uncovers the global and local Concentrates/Dilutables market, based on the latest information and research. It examines the relevant global and local market trends, innovation and technology, drivers, and challenges, to present an objective insight into the South African Concentrates/Dilutables industry environment and its future.
In 2019, the global Concentrates market reached a total of approximately 2.9 billion litres in terms of retail sales, as illustrated in the graph below. Regionally, Europe (Eastern and Western Europe combined) represented the largest region in the global Concentrates market, with approximately 1.1 billion litres in 2019. This was followed by Middle East and Africa and Latin America, with approximately 820 million litres and 527 million litres, respectively.
Source: Euromonitor Graphics by Insight Survey
In South Africa, the Concentrates market experienced a negative year-on-year growth of -6.4% between 2018 and 2019, and is forecast to continue to witness declining market growth over the next 5 years. However, despite this challenging market environment, various trends are starting to gain momentum, which could potentially boost growth in future.
In particular, a major trend currently gaining in popularity is the increased focus on adult-orientated Concentrate products, such as cordials, which are currently on the rise.
These adult-orientated cordials have gained significant strides in the market, catering to both the alcoholic and non-alcoholic segments, with the products being used in a variety of cocktails and mocktails. For example, elderflower cordials have become increasingly popular, with more consumers seeking exotic beverage flavours and using it in a variety of cocktails, especially gin-based drinks. In addition, a number of cocktail and mocktail recipes are being made available online, with these recipes including a range of novel, flavoured cordials and syrups.
Furthermore, this trend is being bolstered by the COVID-19 pandemic, with more consumers opting to enjoy cocktails at home, supporting social distancing regulations. With the restaurant and foodservices segment being more limited during the lockdown, consumers across the globe have turned towards cocktails, or “quarantinis”, as a way of making drinking at home more exciting. As such, more consumers are using Concentrates pre-mixes or syrups for the creation of their own homemade cocktails/mocktails, during the national lockdown.
As industry players look to withstand the tough Concentrates environment, more are looking at alternative ways to differentiate themselves, with adult-focused cordials being amongst these strategies.
The South African Concentrates/Dilutables Industry Landscape Report 2020 (100 pages) provides a dynamic synthesis of industry research, examining the local and global Concentrates industry from a uniquely holistic perspective, with detailed insights into the entire value chain – from key global and South African market trends, innovation and technology, drivers, and challenges as well as manufacturer, distributor, retailer, and pricing analysis.
Some key questions the report will help you to answer:
- What are the current market dynamics of the Global Concentrates industry?
- What are the key global and South African Concentrates industry trends, innovation and technology, drivers, and challenges?
- What are the market value and volume trends in the SA Concentrates market (2014-2019) and forecasts (2020-2024), including the impact of COVID-19??
- Who are the key manufacturers, distributors and retail players in the SA Concentrates industry?
- What are the prices of popular Concentrate brands and products across South African retail outlets and supermarkets?
Please note that the 100-page report is available for purchase for R30,000.00 (excl. VAT). Alternatively, individual sections can be purchased for R12,500.00 (excl. VAT). For additional information, simply contact us at info@insightsurvey.co.za or directly on (021) 045-0202 or (010) 140- 5756.
For a full brochure: South African Concentrates/Dilutables Industry Landscape Report 2020
About Insight Survey:
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