The volume growth may be attributed to:
Despite the recorded increase in volume and value, players mentioned that consumers are compromising on product quality for price, as the category has a higher price in rand per litre terms compared to other non-alcoholic beverage markets.
There has been a shift in pack sizes purchased by consumers as well as a growth in smaller pack sizes and family sized packs, as these are considered more affordable.
Top end retail remains the biggest channel used to distribute RTD Fruit Juice. There is also an increase in exported volumes as players look for alternative distribution channels to increase their volumes. The weaker Rand also aided the increase in exported volumes.
The major metropolitan areas represent the majority of the RTD Fruit Juice market volume, amounting to 73.3% of the total market. Market players have shifted attention to smaller underserviced regions in order to maintain their volumes. The major increases in volumes were seen in Free State, Mpumalanga, North West and Limpopo.
BMi Research specialises in consumer and industrial research in various sectors, including the retail market. For more information, go to www.bmi.co.za.
