The South African beverages market is experiencing significant growth, projected to reach USD 25.74 billion by 2029. Neil Wiltshire, senior flavourist at Kerry South Africa, explores these trends and their impact on the industry.
This surge is driven by consumer preferences for convenience and innovative flavours, creating ample opportunities for new product formulations. The South African beverages market has grown significantly in recent years and is expected to hit USD 25.74 billion by 2029.
Increasing consumer preference for beverages that focus on convenience and new flavours is accelerating growth and creating more opportunities in the beverage space.
The beverage market has mostly been defined by traditional mainstream flavours like cola, orange, and lemon. More recent years have seen a growing social drinking scene and renewed interest in ready-to drink products, both of which are driving a strong opportunity for new flavour formulations. In fact, a 2024 Research and Markets report on the South African beverages market projected a 5.19% CAGR from 2024 to 2029, growing from USD 20 billion in 2024 to USD 25.74 billion by 2029.
Social drinking in South Africa has been gaining popularity in recent years, as evidenced by the increased demand for alcoholic beverages, including beer. According to a 2023 GlobalData report, South Africa makes up 95% of the flavoured alcoholic beverages market in Africa. Premium alcoholic beverages have also come to the fore with local players introducing fruit hops into their craft beer to offer more flavours to consumers. This has been successful in positioning their craft beer as premium. Alcohol-free and low-alcohol options are having a moment too, largely due to younger consumers trying to stay healthier. Already, key industry players in South Africa have jumped on the flavoured beverage bandwagon.
In September 2022, Coca-Cola introduced its new juice brand, Cappy, a 100% fruit juice product available in flavours such as Tropical, Orange Mango, Apple, Orange, and Grape. Similarly in July 2022, Red Bull in South Africa also launched a new Summer Edition Apricot energy drink flavoured with a blend of apricot and strawberry with a hint of peach. With innovation in the industry catering to this expanding interest in new flavours and alcoholic and non-alcoholic beverages, manufacturers have an opportunity to keep their product offerings attractive by delivering fresh, new tastes.
A new era in beverage formulation
Traditionally, emulsion methods of adding flavours like citrus oils, mint oils, and spice oils to beverages result in a cloudy mixture that’s commonly seen in alcoholic beverages, fizzy drinks, sports and energy drinks, bottled orange juice, even flavoured water. On the molecular level, this mixture is also unstable. With the right flavour solution, such as Kerry’s new ClearBurst technology, flavour oils and water can mix better, resulting in flavoured drinks and alcoholic beverages in crystal clear formats with superior taste. Classified as General Business Gin, for example, is made from fermented juniper berries. With ClearBurst, manufacturers can use juniper oil to easily achieve either a gin-flavoured alcohol-free clear format beverage or enhance the flavour of gin. As ClearBurst works well with citrus oils too, it can be easily applied to other clear format beverage or enhance the flavour of gin. As ClearBurst works well with citrus oils too, it can be easily applied to other clear format alcoholic beverages, such as adding citrus flavours to vodka.
Achieve superior flavour with authentic taste
Globalisation and South Africa’s diverse cultural identity make the country unique in a way that while locals are open to international flavours, they still seek out familiar tastes and flavours. Achieving authentic flavours localised for individual markets is an area of strong potential for the beverages industry, yet it comes with challenges. For example, while citrus flavours are popular, the market is flooded with products that struggle to capture authentic taste. Grapefruit, lime, lemonade, bitter orange, blood orange, and clementine are some of the fastest growing citrus flavours in South Africa in recent years, as seen in new product launches. However, often, citrus-flavoured beverages that have certain taste claims end up tasting like something else. This is because citrus flavours are typically extracted using an essential oil wash method, in this case, a citrus oil wash. This method only retains the water-soluble portions of the flavour, extracting less than 10% of its flavour. This results in the loss of authentic flavour character, leading to a diminished taste profile. To gain a competitive advantage, authenticity in taste is crucial. In South Africa, manufacturers have been challenged to deliver the authentic taste of the well-loved naartjie (South African tangerine), which has its own nuances distinct from other varieties of mandarin oranges. This is where a solution like ClearBurst can come into play. By integrating science and local raw ingredients, ClearBurst technology can capture the naartjie’s unique flavour profile to help manufacturers create a clear format beverage product with an authentic South African taste, with notes that are brighter and richer. Being locally produced also allows manufacturers to optimise costs and create a more efficient production and supply chain.
The future of refreshment
As South Africa’s beverage landscape evolves, the consumer’s thirst for discovery and premium beverage experiences will continue to drive market demand. To stay ahead of the curve, manufacturers need to focus on cost efficient innovative offerings to excite taste buds while distilling the country’s rich cultural heritage through unique local flavours. Click here to find out more about Kerry ClearBurst technology and how it can deliver authentic, premium flavours to beverages.
