The African RTD coffee market was valued at USD 210.1 million in 2017. The market is expected to register a CAGR of 1.3% during the forecast period, (2018-2023). It is a recently developed concept, wherein the beverage is sold in a convenient, directly consumable form. Despite being marketed as a young and urban phenomenon, RTD consumers can be from almost all demographic segments.
The instant nature and convenience offered by RTD coffee are important drivers for Africa RTD coffee market. The nature of the product makes it a highly trend-driven and, as such a certain element of innovation is constantly in demand. Regarding the major access points, iced products with longer shelf life provide major opportunities, along with liquid coffee concentrates and frozen concentrates. The latter holds importance for bulk buyers, such as restaurants and offices. The major constraint for the market is in adapting to regional tastes and preferences. Specific regions, where consumers are habituated to hot or freshly ground coffee, take a considerable time and reluctance in adapting to the new tastes. Extensive marketing and use of locally sourced products are essential in countering this perception.
The Africa RTD Coffee market is segmented based on ingredient type, packaging mode, sales channels, and geography. Convenience stores, supermarkets, and mass sellers are the major sales and distribution networks. Considering the volume dependent nature of the market, availability of the products is a major market determinant. This factor is further amplified in the case of emerging countries, which lack a fully developed distribution network. The supermarket shelves and vending machines gain prominence in this regard. Both these access points make soft drink manufacturers, the ideal distribution partners, and dominant market players. This phenomenon can be clearly observed in the long-standing partnership between PepsiCo and Starbucks. Despite the portfolio strength of Starbucks, the distribution network offered by Pepsi is crucial for an adequate market penetration. This distribution related facet of the industry offers a significant challenge to new and small players.
Based on geography, Africa offers a nascent market with limited infrastructure. South Africa occupies the leading and dominant market position here followed by various other emerging nations. The region is expected to witness slow to moderate growth rate over the forecast period.
- February 2018 – Cargill’s North American Food Ingredients & Bio-Industrial division announced that it has signed a long-term strategic agreement with international ingredients distributor Univar. The deal includes an ingredients distribution agreement, which will allow Cargill’s ingredients arm to expand the distribution
- January 2018 - Coca-Cola-backed brand-incubation company L.A. Libations has taken a big step into the cold brew space, engaging in a strategic partnership with Southern California-based KonaRed Corporation
Major Players - Ajinomoto General Foods Inc., Asahi Group Holdings Ltd., Cargill, Coco-Cola Company, Dr. Pepper Snapple Group, Dunkin' Brands Group, Ferolito Vultaggio & Sons, Green Mountain Coffee Roasters, Japan Tobacco Inc., Lotte Chilsung Beverage Co., Monster Beverage Co., Pepsico Inc, Pokka Group, San Benedetto, Starbucks Corporation, among others.
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- Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
- Market dynamics, which essentially consider the factors, which are impelling the present market scenario, along with growth opportunities of the market in the years to come
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market
- Competitive landscape involving the market share of major players, along with the key strategies adopted for development in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
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1.1 Key Deliverables of the study
1.2 Study Assumptions
1.3 Market Definition
2. Research Approach & Methodology
2.2 Research Designs
2.3 Study Timelines
2.4 Study Phases
2.4.1 Secondary Research
2.4.2 Discussion Guide
2.4.3 Market Engineering and Econometric Modeling
2.4.4 Expert Validation
3. KEY FINDINGS OF THE STUDY
4. MARKET DYNAMICS
4.1.1 Increasing Trend of Health Awareness
4.1.2 Combination of RTD Coffee with Energy Drinks
4.1.3 Rising Income in Developing Countries
4.2.1 Increasing Cost of Raw Materials
4.2.2 Rising Consumption of Freshly Ground Coffee
4.3.1 Targeting New Consumer
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1 By Ingredients Type
5.1.3 Yerba Mate
5.1.5 Vitamin B
5.1.6 Acai Berry
5.2 By Packaging
5.2.1 Bottles (Glass & Pet)
5.3 By Sales Channel
5.3.1 Convenience stores
5.3.3 Mass merchandisers
5.3.4 Drug stores
5.3.5 Food services/ Sports nutrition chain
5.4 By Geography
22.214.171.124 South Africa
126.96.36.199 Rest of Africa
6. Competitive Landscape
6.1 Strategy Adopted by Key Players
6.2 Most Active Companies in the Past Five years
6.3 Market Share Analysis
7. Company Profiles
7.2 Starbucks Corporation
7.3 Asahi Group Holdings Ltd.
7.4 Ajinomoto General Foods Inc.
7.5 Dunkin' Brands Group
7.6 Green Mountain Coffee Roasters
7.7 Ferolito Vultaggio & Sons
7.8 Dr. Pepper Snapple Group
7.9 Japan Tobacco Inc.
7.10 Lotte Chilsung Beverage Co.
7.11 Monster Beverage Co.
7.12 Pokka Group
7.13 Pepsico Inc.
7.14 San Benedetto
7.15 Coco-Cola Company