Alcoholic Drinks - South Africa

The Alcoholic Drinks market in South Africa has been experiencing significant growth in recent years.

Customer preferences: South African consumers have shown a growing preference for premium and craft alcoholic beverages. This trend can be attributed to a shift in consumer attitudes towards quality and uniqueness. Consumers are increasingly seeking out products that offer a distinct taste and are willing to pay a premium for these offerings. Additionally, there has been a rise in health-conscious consumers who are opting for low-alcohol or alcohol-free alternatives. This shift in consumer preferences has led to an increase in the demand for a wider variety of alcoholic beverages in the market.

Trends in the market: One of the key trends in the South African Alcoholic Drinks market is the rise of the craft beer industry. Craft beer has gained popularity among consumers due to its unique flavors and locally sourced ingredients. The craft beer segment has witnessed significant growth, with a growing number of microbreweries and brewpubs opening up across the country. This trend is expected to continue as consumers seek out new and innovative flavors. Another trend in the market is the increasing popularity of wine. South Africa is known for its wine production, and the country has seen a rise in both domestic and international demand for its wines. This can be attributed to the growing reputation of South African wines for their quality and affordability. The wine segment has also benefited from the rise in wine tourism, with more tourists visiting the country's wine regions and purchasing local wines.

Local special circumstances: South Africa has a unique drinking culture, with a strong tradition of socializing and celebrating with alcoholic beverages. This cultural aspect has contributed to the growth of the Alcoholic Drinks market in the country. Additionally, the country has a large and growing middle class population, which has led to an increase in disposable income and discretionary spending. This has further fueled the demand for premium and craft alcoholic beverages.

Underlying macroeconomic factors: The South African economy has been experiencing slow growth in recent years, which has had an impact on consumer spending patterns. However, despite the economic challenges, the Alcoholic Drinks market has remained resilient. This can be attributed to the fact that alcoholic beverages are considered affordable luxuries, and consumers are willing to spend on these products even during times of economic uncertainty. Additionally, the country's growing urban population and changing demographics have also contributed to the growth of the market. In conclusion, the Alcoholic Drinks market in South Africa is experiencing growth due to changing consumer preferences, including a preference for premium and craft beverages. The rise of the craft beer industry and the increasing popularity of wine are key trends in the market. South Africa's unique drinking culture, growing middle class population, and resilient consumer spending patterns are also contributing factors. Despite economic challenges, the market is expected to continue growing in the coming years.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.