Market Trends of South Africa Water Enhancer Industry
This section covers the major market trends shaping the South Africa Water Enhancer Market according to our research experts:
Implementation of Sugar Tax, Leading to Increasing Demand for Water Drink Mixers
In April 2018, the South African government implemented a tax on sugar-sweetened beverages. This tax was aimed at reducing the consumption of sugary drinks and improving citizens' health in the long-run, due to the increasing prevalence of diseases among the South Africans. Sugar-sweetened beverages that would be taxed include sodas, fruit drinks, energy drinks, and vitamin water that contain sucrose, high-fructose corn syrup, or fruit juice concentrates. This created a substantial demand for water enhancers in the country, to meet the consumer's thirst for flavored yet nutritional drinks. The implementation of a sugar tax has drastically declined the sales, as well as per capita consumption, of carbonated beverages in the past couple of years.
Supermarkets/Hypermarkets Hold a Significant Share in the Market
The supermarkets/hypermarkets segment of the market studied holds the largest market share, indicating consumer preference toward this segment. Owing to the high consumer demand, major supermarkets are expanding the range of water enhancers representing the diversity of the products. The growth observed in the supermarket segment was led by the appeal it causes to boomers, seeking for safe exploration of various flavors of water enhancers. The trend of bulk shopping is increasing due to the increased income and busy lifestyles of the consumers. Selling the products through supermarkets signifies the transaction building strategy of the seller, as it leads to increased impulse purchases of the consumer.
