New players in sports drinks push projected growth

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The value of the RTD sports drinks market has increased from 2012 to 2013. The driving force behind this was the increase in the weighted average price. The average price of category is however expected to be proportionally lower, with alignment to the headline inflation rate, as new market players are entering with a lower price on a rand per litre.

New players are expected to enter this niche market in future as there is currently less competition compared to other categories and it is believed that the product has not reached its maturity phase in the product life cycle.

There have been new market entrants and new product lines that have already entered the market in the 2013 year. Opportunities are also believed to be in examining currently underserviced regions and channels with innovative promotional activity.

Channel Distribution

Bottom end retail and wholesale, which are two of the larger channels, have grown in market share from 2012 to 2013. The growth is at the expense of on-consumption and garage forecourts, which have both decreased in volume, share during the same period.

Regional Distribution

Key metropolitan areas in South Africa, which are KwaZulu-Natal, Western Cape and Gauteng, contributed to majority of the market in RTD Sports drinks in the year 2013. Gauteng has however seen a drop in market share from 2012 to 2013.

BMi Research specialises in consumer and industrial research in various sectors, including the retail market. For more information, go to www.bmi.co.za.