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Good growth forecast for FAB market

12 Aug 2013

The 2013 BMi research on the flavoured alcoholic beverages (FAB) market has increased from 2011-2012 in volume. Players in the market feel that the market has predominantly impulse buyers that are not afraid of trying new products that they find novel and appealing. It is believed that the market will experience growth.

The FAB market consists of traditional alcoholic fruit beverages, such as ciders and wine-based fruit ales, as well as spirit coolers or premixed products. The industry is encountering new opportunities and challenges. Growth is being driven by demand for organic products and drinks with low alcohol content in this industry. There are consumers changing preferences, featuring a shift toward health-oriented wellness drinks.

Category value growth was driven jointly by the price per litre increase as well as by the volume growth. The prices increased due to natural inflationary pressures and a rise in excise levies across all alcohol products.

In terms of packaging demand, the 330ml/340ml sizes experienced growth. With competition in this industry, players in the market feel that packaging provides a competitive edge by adding value to the consumer.

2012 Channel Distribution

Western Cape increased its volume share this year in distribution whilst Eastern Cape, Free State/Northern Cape and KwaZulu-Natal regions experienced a decrease in share and the Gauteng region remained static.

2012 Local Regional Distribution

BMi Research specialises in consumer and industrial research in various sectors, including the retail market. For more information, go to www.bmi.co.za.