South Africa’s instant coffee market is projected to grow at a CAGR of 5.91%, from US$247.772 million in 2020 to US$370.449 million in 2027.
The demand and popularity of instant coffee have risen in South Africa in the past few years owing to the availability and the convenience instant coffee offers. The coffee culture in South Africa is evolving, which can be attributed to the fact that the influence of western culture is spreading further, and the coffee products such as instant coffee and coffee pods, among others, are gaining traction among the working class and middle-aged individuals. This is due to the fact that instant coffee products are able to save time and add to the convenience of people as it takes less time to prepare the product.
Moreover, as younger individuals are becoming attracted to consuming coffee outside of the home, many coffee shops and speciality cafes are opening up in order to cater to the rising demand for blended and flavoured instant coffee. Thus, these factors are leading to an increased demand for different roasts and flavours of instant coffee and are causing the market’s growth to propel over the forecast period.
Product Offerings by the market players in the South African instant coffee market
The offering of better and advanced varieties of instant coffee with enhanced flavor and aromas, among others, by existing and new players in different markets is estimated to lead to increased adoption and propel the market growth further over the forecast period.
Gibsons Coffee Ltd., which is considered one of the popular distributors of a variety of coffee in South Africa, is gaining traction among the consumers as it offers different types of coffee in order to cater to the consumers’ demands effectively. They offer different types of products under their variety of product ranges. Some of the products they are involved in providing are “Kenya Gourmet Ground Dark Roast” which is a product that has a darker roast that is available in a packet of 454g. They provide their product called the “Kenya Espresso Ground Dark Roast” which is also a dark roast product available in a fine texture and in a packet of 454g. Another product they offer for household uses is called the “KENYA HOUSEHOLD GROUND MEDIUM ROAST 454GM”, which is a product that has been roasted to a medium level, is in a coarser and ground form, and is available in a packet containing 454g of the product.
Key Developments in the Market:
COVID-19 Insights:
COVID-19 had a significant impact on the South African instant coffee market. The rise in infected cases and mandated lockdown led to the closure of several food outlets and coffee houses in public places, institutions, and corporations, leading to the decline in sales in the respective segments. However, this led to increased sales in the domestic segment.
Segmentation