Positive growth for dilutables, research finds

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Dilutable beverage products has also been growing between 2.5 and 3.9 times as much as PCE for the last two years while the annual dilutable per capita growth rate has also been growing since 2012.

Based on these observations it is clear to see that the market is growing faster than the South African economy and that more of consumer's disposable income is spent on dilutable beverage products than they previously have spent in the past.

It is possible to identify the lower income population as being the most likely target market for the dilutable beverage category. This observation is based on the increase in volumes in traditionally rural areas as well as the increase in volumes through the bottom-end and wholesale channels. Bulk purchases from wholesale retailers are popular among small or informal business owners who sell their products in lower income areas such as townships and other rural informal settlements.