SA's coffee market defies price hikes with quality-driven consumption
South African coffee drinkers are increasingly opting for premium coffee products, which are proving more resilient and continuing to grow even amid a challenging economic environment.
“Despite market pressures, Douwe Egberts had a strong 2025, with increased market share largely driven by our product diversification strategy and focus on authentic coffee formats,” says Mbulelo Mashilo, brand manager at Douwe Egberts.
“We’ve remained agile in responding to market shifts, meeting consumers across different price points and consumption occasions.”
South Africa’s coffee culture is catching up to its European and other first-world counterparts, with local taste profiles evolving toward café-style quality. Instant coffee remains the largest segment in the South African market, as its convenience and functional benefits continue to meet the needs of the majority of consumers, even as interest in premium and convenient formats grows.
This is where the intersection between quality and convenience becomes most apparent. As lifestyles become faster-paced, consumers are selecting formats that deliver an authentic coffee experience while fitting seamlessly into daily routines.
“Ready-to-drink and capsule formats are performing particularly well,” says Mashilo. “As of December 2025, volumes in the ready-to-drink category are up more than 15%. Consumers want coffee that tastes authentic, but they also want accessibility - whether that’s on the go, during a commute, or at home with minimal preparation.”
Since launchin its ready-to-drink range in 2024, Douwe Egberts has seen double-digit growth since launch, alongside sustained demand for instant coffee, capsules, and refill formats. South African consumers are increasingly ‘trading across formats’, selecting products based on occasion, value, and convenience rather than simply downgrading to cheaper substitutes.
“This has been a key driver of our growth through 2025,” Mashilo adds. “Our focus has been on balancing quality with practicality, delivering coffee that meets consumers’ expectations, whether they’re brewing at home or grabbing coffee on the move.”
Market forecasts support this outlook. According to Statista, South Africa’s coffee market is expected to grow by approximately 7.2% annually between 2024 and 2028, driven by increased at-home consumption and rising demand for premium yet convenient options.
Looking ahead to 2026, Mashilo expects the convenience trend to continue locally. “South Africa is slightly different. Consumers here are embracing formats that deliver quality without complexity. We expect steady growth in ready-to-drink, capsules, and refill formats over the next few years.”
While the market outlook remains positive, price sensitivity is expected to persist. “Consumers are still under pressure, which is why value-driven options like refill pouches are gaining traction,” Mashilo says.
“Even in a challenging economic environment, coffee remains non-negotiable. As manufacturers, we need to deliver formats and options that meet consumers’ needs to stay relevant.”