Powdered beverages market contracts, BMi report

Image: FreeDigitalPhotos.net

Hot powdered beverages comprise just over half the total market volumes, with a 54.1% share. Cold powdered beverages, which comprise of milk and water dilution agent powdered beverages, form the balance of the category.

Product Definition

• Hot powdered beverages comprise two drink types, malt-based drinks and cocoa. For reporting purposes, pure cocoa and chocolate-based products that include cocoa have been combined. These powdered beverages are generally combined with either, hot water and/or hot milk before being consumed.
  
• Milk Based Cold Powdered Drinks - these entail a milk modifier in powder or granulated form that is used to make a beverage with the addition of cold milk.
  
• Water Based Cold Powdered Drinks - these entail a water modifier in powder or granulated form that is used to make a beverage with the addition of water.

Market trends - hot powdered beverages

Hot powdered beverage volumes remained static in 2011 and no major volume changes are anticipated for the near future.

Within the retail channel, hot powdered beverages dominate with a 65.3% market share. This highly seasonal category saw volumes grow by 2.8% within the retail channel during 2011.

Market trends - cold powdered beverages

Milk based powdered beverages, the smallest category within powdered beverages, saw a healthy volume growth of 6.4% in 2011. Milk based variants exhibited the highest growth within the powdered beverage market, though off a low base. However, as this niche category only comprises 12.6% of the total category, it did not impact significantly on the total category's volumes.

In contrast to the other two product categories, water based cold powdered beverages experienced a decline in volumes. This is the second consecutive year, that volumes have declined and this trend is expected to continue for the short term.

Within foodservices, water based powdered beverages is the most popular and contributes 65.9% of the foodservice market share. Cold powdered beverage volumes, within foodservices declined by 3.1% in 2011 and were a large contributor to the negative growth seen within the overall foodservices sector.

For the fourth consecutive year, cold powdered beverage volumes have declined within the retail channel.

Product Breakdown of Powdered Beverages - 2011

Channel Distribution of Powdered Beverages - 2011

Local Regional Distribution of Powdered Beverages - 2011

Breakdown of Hot Powdered Drinks - 2011

BMI Research: Consumer Division offers annual tracking reports, in store observation services (ISOS), print ads promotional pricing and share of spend, liquor in store pricing (LISP), consumer research and commissioned research. For more information, go to www.bmi.co.za.