Iced tea market shows export growth

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The recorded market performance may be attributed to the following:

• Innovative promotional campaigns and advertising strategies by iced tea players
  
• The realisation of exports being an opportunity for key players to drive volumes
  
• Players launched new products in 2013
  
• Players have started focusing on the smaller regions as the headline inflation rate is much lower in these regions keeping their prices more static

The value of the industry has shown an increase from 2012 to 2013. The growth in value is predominantly driven by the increase in the volume of the smaller pack sizes, hence increasing the weighted average price.

Despite the growth, market players noted that consumer spending was depressed due to economic factors, which hampered additional growth opportunities in the category.

Channel Distribution

Exports have shown a large volume increase from 2012 to 2013. The growth is believed to be due to players seeing this channel as an opportunity to drive volumes and was considered to be previously underserviced.

Regional Distribution

Key metropolitan areas, which include Gauteng, KwaZulu-Natal and Western Cape, have shifted in collective market share from 2012 to 2013.

The medium term iced tea market forecast remains positive, however rather static as players in the industry have uncertainties about how the future economic factors are going to affect their businesses.

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