SOUTH AFRICAN CARBONATED SOFT DRINKS INDUSTRY LANDSCAPE REPORT PUBLISHED: FEBRUARY 2020 Image Source COMPANYCOMPANY OVERVIEW OVERVIEW Insight Survey is a boutique South African market We offer B2B market research solutions to help you to research agency with over 10 years of experience, successfully improve or expand your business, enter new specialising in Business-to-Business (B2B) and Industry markets, launch new products or better understand your research to ensure smarter, more-profitable business internal and external environment. decisions are made with reduced investment risk. We believe in the advantage market research gives business leaders to fully understand their industry, facilitate business strategy, improve company performance, and drive company growth. 2020 | 2 INDUSTRY & COMPETITOR INTELLIGENCE Our bespoke Industry and Market Intelligence can help give the edge in a global marketplace, empowering your business to overcome industry challenges quickly and effectively, and enabling you to realise your potential and achieve your vision. From strategic overviews of your business’s competitive environment through to specific competitor profiles, our customised Intelligence is designed to meet your unique needs. QUESTIONS WE HELP ANSWER OUR RESEARCH SOLUTIONS Competitor pricing research o What is the current and future market size? Store visits and store checks o What are the latest global and local trends impacting on the market? Competitor interviews o Who are your key competitors and what is their offering in terms of products, services, pricing and Customer interviews branding? Company website analysis Governmental held records 2020 | 3 FOOD AND BEVERAGES INDUSTRY REPORT CLIENTS We are a proudly South African company that have provided market research solutions and Intelligence reports to local and global brands. We have worked with some of the greatest companies and brands in their industries. 2020 | 4 REPORT OVERVIEW The South African Carbonated Soft Drinks Industry Landscape Report (119 pages) provides a dynamic synthesis of industry research, examining the local and global Carbonated Soft Drinks industry from a uniquely holistic perspective, with detailed insights into the entire value chain – from manufacturing to retailing, market size trends, industry trends, industry drivers and challenges, and pricing analysis. SOME KEY QUESTIONS THE REPORT WILL HELP YOU TO ANSWER: For the Global Carbonated Soft Drinks Industry Section: o What are the current market dynamics of the Global Carbonated Soft Drinks industry? o What are the key markets within the Global Carbonated Soft Drinks industry? o What are the Global Carbonated Soft Drinks industry trends, drivers, and challenges? For the South African Carbonated Soft Drinks Industry Section: o What are the current market dynamics (market size, market value, market volumes): 2014-2019 Actual, 2020-2024 Forecasts? o What are the South African Carbonated Soft Drinks industry trends, drivers and challenges? For the South African Carbonated Soft Drinks Manufacturer & Distributor Section: o Who are the key manufacturing and distributor players in the South African Carbonated Soft Drinks industry? For the South African Carbonated Soft Drinks Retail and Pricing Analysis Section: o Who are the key retail players (retail outlets and convenience stores) in the South African Carbonated Soft Drinks industry? o What are the prices of popular Carbonated Soft Drinks brands across South African retail outlets? 2020 | 5 SCREENSHOTS FROM REPORT 119-page report filled with detailed charts, graphs, and insights 2020 | 6 SAMPLE FROM REPORT GLOBAL INDUSTRY OVERVIEW The global Carbonated Soft Drinks (CSD) market is estimated o However, growing awareness amongst increasingly health conscious to be worth approximately US$402.3 billion in 2020, and is consumers regarding the sugar content of CSD products could act as a predicted to grow at a CAGR of 3.4% to reach approximately restraint on the market, as these consumers could potentially opt for healthier alternatives. Additionally, the global CSD market’s growth could US$444.7 billion in 2023, as illustrated in graph below. In be negatively affected by static growth in terms of consumption within terms of per capita revenue, it is expected that US$54 per developing regions, as health awareness amongst consumers in these person will be generated in 2020, while per capita regions increase. consumption is expected to reach 28.1 litres. o In terms of segmentation, the global CSD market can be segmented by Flavour into Cola, Lemon, Lime, Orange, and Others. Based on Flavour, o Overall, the CSD market growth over the past few years has been the Cola segment is expected to continue to be the largest Flavour attributed to the introduction of a wide variety of products catering to segment up to 2024. changing consumer food trends. Furthermore, the increasing number of younger consumers within developed regions and the increasing demand o In addition, the global market can be segmented by packaging type into for processed food products in developing countries has also driven the Bottles and Cans. Based on packaging type, the Bottles segment is growing demand for CSD products. predicted to continue to be the largest packaging segment in terms of revenue within the global CSD market up to 2024. o Additional factors, which have driven the global CSD market, include growing urbanised populations, rising consumer disposable income, VALUE OF GLOBAL CARBONATED SOFT DRINKS growing demand for takeaway food products, and greater accessibility of MARKET: 2020* & 2023* (IN US$ BILLION) products due to distribution channel expansion. 500 444.7 402.3 o There has also been a shift in preference amongst global consumers 400 towards craft soda products that contain a lower amount of calories and 300 sugar content, matching consumer health preferences in this regard. 200 o Packaging and labelling innovations for CSD products have also helped to 100 drive demand by adapting to consumer needs and by increasing product and brand visibility. 0 2020* 2023* * Estimate 2020 | 7 Sources: MRF; MordorIntelligence; Hexaresearch; Statista; MarketWatch; Flaticon SAMPLE FROM REPORT SA CARBONATED SOFT DRINKS INDUSTRY: SA INDUSTRY DRIVERS Flavour Innovation o Within the current market environment, CSD manufacturers have started to explore various ways to regain declining market share. o One of key trends which has arisen from this exploration process is the introduction of exotic flavours. This ongoing trend currently represents one of the key ways in which CSD manufacturers are attempting to cater to the broadening taste palate of consumers and also keep consumers engaged. o As an example, PURA, a Carbonated Soft Drinks company, currently offers consumers an alternative CSD product range that is enriched with exotic flavours such as juniper, cranberry, cucumber and lime, and seville orange, amongst others. o Another example is Barker & Quin, a Paarl-based premium tonic producer in the Western Cape, who are currently are also offering consumers innovative beverage flavours, particularly in terms of their Indian Tonic. For example, the ingredients of their Finest Indian Tonic Water include natural quinine, citrus fruit extracts, and Indian spices like cardamom and star anise. o Due to the popularity of these new flavour innovations, it is expected that more soft drink manufacturers will capitalise on this trend by developing new and innovative flavour profiles in order to cater for consumer preferences and ultimately drive sales. 2020 | 8 Source: Euromonitor; PURA; B&Q SAMPLE FROM REPORT SA MANUFACTURER & DISTRIBUTOR OVERVIEW: COCA-COLA Established in 1886, the Coca-Cola Company is a multi- COCA-COLA’S CARBONATED SOFT DRINK faceted manufacturer and distributor of concentrates, BRANDS/PRODUCTS: syrups, and beverages globally. • Appletiser • Sprite o Coca-Cola entered the South African market 90 years ago, with the first • Coca-Cola • Stoney Coca-Cola product sold in Cape Town in 1928. • Fanta • Tab o Coca-Cola’s core business includes the manufacturing and selling of concentrates, beverage bases, and syrups to bottling operations, as well • Schweppes • Twist as owning brands and being responsible for consumer brand initiatives. • Sparletta o The company is operational by means of multiple local channels and has approximately 225 bottling partners spread across the world. The bottling partners manufacture, package, merchandise, and distribute the branded beverages to customers and vending partners, where it is in turn then sold to customers. o In addition, Coca-Cola beverages are distributed to more than 200 countries and reaches approximately 27 million customer outlets, resulting in more or less 1.9 billion servings sold on a daily basis. o The Coca-Cola Company has more than 500 brands and its beverage portfolios consists of a wide variety of products including sports drinks, enhanced water, ready-to-drink coffee, and Carbonated Soft Drinks, amongst others. o Of particular interest is their extensive range of Carbonated Soft Drinks brands and products including Appletiser, Fanta, Schweppes, and Sprite, amongst others. 2020 | 9 Source: C-C; C-C 1; C-C 2; CCBSA ; C-C-SA; C-C-3; Logo SAMPLE FROM REPORT SA MANUFACTURER & DISTRIBUTOR OVERVIEW: PEPSI MARKETING Pepsi is one of the most well-known Carbonated Soft Drink brands globally, as well as in South Africa. Their signature blue, red, and white colours feature in all marketing material and the company often makes use of professional athletes to advertise their products. o From Pepsi’s social media platforms, it is evident that they are involved in events for younger audiences and that they regularly launch competitions and promotions on their social media platforms such as Facebook. o In January 2020, Pepsi also launched a new tagline ‘That’s What I Like’ – the first new tagline in twenty years. This new tagline is part of Pepsi's efforts to define themselves not as oppositions to other cola drinkers, but rather as its own brand for people who are comfortable with themselves and do not worry about how they are perceived by others. o In October 2019 Pepsi launched its ‘Pepsi Million Buck Sip’ promotion to promote the Pepsi Max brand.