Report Overview

South Africa Coffee Market - Industry Trends & Forecast Report, 2030

South Africa Coffee Market size was estimated to be worth USD 674.41 million in 2023. During the forecast period between 2024 and 2030, South Africa Coffee Market size is projected to grow at a CAGR of 7.35%, reaching a value of USD 1,104.38 million by 2030. Major growth factors for South Africa Coffee Market include increasing disposable income, growing café culture, and changing the lifestyle of consumers. Furthermore, rising launches of new products, such as premium coffee, sustainability-sourced coffee, and specialty and gourmet coffee, are anticipated to drive South Africa Coffee Market during the forecast period.

Coffee – Overview

Coffee is a globally beloved beverage brewed from roasted seeds of the Coffea plant's cherries, primarily Arabica and Robusta species. The seeds are separated from the berries and then roasted to produce a consumable product. Grown in tropical regions, these beans undergo processes like drying, roasting, and grinding before being brewed into drinks ranging from espresso to cold brew. Renowned for its rich flavor and caffeine boost, coffee plays a pivotal role in social interactions, cultural rituals, and the global economy. While moderate consumption of coffee offers health benefits, it is crucial to balance intake.

South Africa Coffee Market

Growth Drivers

Growing Café Culture

The bustling café culture that is ingrained in South African culture in the form of social traditions and specialty coffee shops drives the growth of the South Africa Coffee Market. Traditions like bos koffie, which is a ceremony of brewing coffee over an open fire, or amarula, a cream liqueur served with coffee on special occasions, directly influence the demand for coffee in the country. The increasing number of specialty coffee shops, particularly in Cape Town, is also propelling the demand for coffee in the country. These shops source coffee from sustainable farms that use eco-friendly packaging and implement recycling programs.

Challenges

Increasing Price of Coffee in South Africa

Coffee has a huge market in South Africa. However, increasing the price of the commodity may act as a huge restraining factor for its market growth in the country. Statistics report that the price of coffee has increased up to 82% since 2017. The slow production in major coffee-importing countries, including Brazil and Vietnam, is limiting the supply of coffee in South Africa. Climate change is mainly being held responsible for slow production in coffee-producing countries. Vietnam is witnessing dry production conditions while Brazil is going through below-average rainfall, which affects the coffee supply and hinders its market growth in South Africa.

Impact of Escalating Geopolitical Tensions on South Africa Coffee Market

Further intensifying and spreading of geopolitical tensions among countries across major regions could hinder the growth of South Africa Coffee Market. South Africa imports the majority of its coffee consumed in the country. However, geopolitical tensions lead to supply chain disruption, hindering coffee imports from producing countries, and affecting its price and availability. These conflicts also directly impact consumers and local businesses due to increases in prices as a result of higher shipping costs. Furthermore, geopolitical tensions also impact the diplomatic relationship of South Africa with coffee-importing countries and might affect trade agreements and result in tariffs or sanctions, which may negatively impact the growth of South Africa Coffee Market.

South Africa Coffee Market

Segmental Coverage

South Africa Coffee Market – By Type

Based on type, South Africa Coffee Market is segmented into whole bean, ground coffee, instant coffee, and coffee pods & capsules. The instant coffee segment holds the largest share of South Africa Coffee Market. The growing demand for instant coffee is attributed to the busy lifestyle of consumers which has increased the demand for convenient products. Instant coffee is also in great demand in commercial spaces, such as offices and hotels, to keep in the hotel rooms. In addition, rising launches of instant coffee products of international brands in the South Africa market are anticipated to provide lucrative growth opportunities to the market during the forecast period.

South Africa Coffee Market – By Distribution Channel

By distribution channel, South Africa Coffee Market is segmented into online and offline. The offline segment dominates South Africa Coffee Market. All types of coffee are easily available in convenience stores, supermarkets/hypermarkets, and specialty stores. Coffee has become a staple in South African households, and, therefore, is purchased with regular groceries. The brick-and-mortar stores offer a wide range of products of different brands as well, which contributes to its market growth. However, the online segment is projected to register the highest growth rate during the forecast period owing to the market shift towards direct-to-consumer sales models.

Competitive Landscape

Major companies in the intensely competitive South Africa Coffee Market include Nestle, Miko Coffee, Terbodore Coffee, Origin Roasting, Bean There Coffee Company, Coffee For Less, Espresso Logic, The Grind Coffee Roasters, and Bluebird Coffee Roastery. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In May 2024 – Melitta Group, a beverage company based in Germany, acquired a majority stake in Caturra, a coffee roaster, beverage, equipment, and training provider company based in South Africa.

Scope of the Report

By Type

• Whole Bean

• Ground Coffee

• Instant Coffee

• Coffee Pods & Capsules

By Distribution Channel

• Online

• Offline

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. South Africa Coffee Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Disposable Income
         2. Growing Cafe Culture
         3. Increasing Urbanization
         4. Health Benefits
      2. Restraints
         1. Price Volatility
         2. Sustainability Concerns
      3. Opportunities
         1. Innovation in Product Offerings
         2. Shift Towards Premium and Organic Coffee
      4. Challenges
         1. Competition from Substitute Beverages
         2. Climate Change and Coffee Production
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. South Africa Coffee Market: Marketing Strategies
5. South Africa Coffee Market: Pricing Analysis
6. South Africa Coffee Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Whole Bean
         2. Ground Coffee
         3. Instant Coffee
         4. Coffee Pods and Capsules
      2. By Distribution Channel
         1. Online
         2. Offline
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. South Africa Coffee Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
8. Impact of Escalating Geopolitical Tensions on South Africa Coffee Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. Nestle
   2. Miko Coffee
   3. Terbodore Coffee
   4. Origin Roasting
   5. Bean There Coffee Company
   6. Coffee For Less
   7. Espresso Logic
   8. The Grind Coffee Roasters
   9. Bluebird Coffee Roastery
   10. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1.   Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
       1.   Secondary Research
       2.   Primary Research
    4. Breakdown of Primary Research Respondents, By Country
    5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       South Africa Coffee  Segmentation

Figure 2       South Africa Coffee  Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       South Africa Coffee  Market Size, By Value (USD Million), 2019–2030

Figure 5       South Africa Coffee  Market Share, By Type,  By Value, 2019–2030

Figure 6       South Africa Coffee  Market Share, By Distribution Channel, By Value, 2019–2030

List of Tables

Table 1        South Africa Coffee  Market Size, By Value (USD Million), 2019–2030

Table 2        South Africa Coffee  Market Size, By Type,  By Value, 2019–2030

Table 3        South Africa Coffee  Market Size, By Distribution Channel, By Value, 2019–2030

Table 4        Nestle Company Overview

Table 5        Nestle Financial Overview

Table 6        Miko Coffee Company Overview

Table 7        Miko Coffee Financial Overview

Table 8        Terbodore Coffee Company Overview

Table 9        Terbodore Coffee Financial Overview

Table 10      Origin Roasting Company Overview

Table 11      Origin Roasting Financial Overview

Table 12      Bean There Coffee Company: Company Overview

Table 13      Bean There Coffee Company Financial Overview

Table 14      Coffee For Less Company Overview

Table 15      Coffee For Less Financial Overview

Table 16      Espresso Logic Company Overview

Table 17      Espresso Logic Financial Overview

Table 18      The Grind Coffee Roasters Company Overview

Table 19      The Grind Coffee Roasters Financial Overview

Table 20      Bluebird Coffee Roastery Company Overview

Table 21      Bluebird Coffee Roastery Financial Overview