Alcoholic drinks in 2024: The big picture
Alcoholic drinks in South Africa witnessed marginal volume growth in 2024. Although inflationary pressures continued to ease, the domestic economic climate was still challenging for consumers during the first half of the year. The situation was compounded by periods of load shedding (planned power cuts) within the first two months of the year, and political uncertainty in the run up to national government elections in May 2024. Pressure on disposable incomes resulted in cutbacks on consumer spending at social events and gatherings, which adversely affected volume sales of alcoholic drinks in both the on-trade and off-trade. The formation of the Government of National Unity (GNU) in May 2024, and an improving economic climate, was welcomed in the latter half of the year, prompting a better performance in alcoholic drinks. While modest volume growth was observed in beer, wine, and spirits, the industry’s performance was shaped by shifting consumer preferences, packaging innovations, and evolving market dynamics.
2024 key trends
Although consumer behaviour and drinking habits are evolving in South Africa, beer remained the largest category in alcoholic drinks over 2024. Beer experienced a slight increase in volume sales, reflecting the difficult economic climate. Domestic mid-priced lager dominates the beer category due to its affordability and broad appeal. In line with global trends, non/low alcoholic drinks, including beer, continued to spur a change within the industry, aligning with the health and wellness preferences of South Africa’s young adults. As a result, manufacturers continued to release non-alcoholic versions of their best-selling brands.
Competitive landscape
The South African Breweries Ltd, a subsidiary of Anheuser-Busch InBev, remains the leading player in 2024, accounting for well over half of volume share. Its brand portfolio includes Carling Black Label, Castle and Castle Lite which are considered staple beer brands amongst local consumers due to their affordability and widespread marketing campaigns. The South African Breweries has achieved robust growth within imported premium lager in 2024, particularly through the success of brands such as Corona and Stella Artois. These brands appeal to higher income groups and have helped The South African Breweries capture a wider segment of the market. The company also saw strong growth within RTDs, with its leading brand, Brutal Fruit, proving popular among the young female population. This was further boosted by strong marketing campaigns through social media and other events, such as music festivals which has helped the brand perform well in 2024. In an effort to adapt to changing consumer trends, The South African Breweries has also continued to prioritise non-alcoholic drinks, leading to the introduction of Corona Cero in 2024.
Retail developments
In 2024, South Africa’s alcoholic beverage distribution landscape continued to evolve, shaped by consumer demand for convenience, affordability, and variety. Traditional retail channels remained dominant, while e-commerce emerged as the most dynamic and fastest-growing channel across all categories.
On-trade vs off-trade split
The split of on-trade vs off-trade consumption remained relatively similar to the previous year across the different alcoholic drinks categories. For the vast majority of South African consumers, economic pressures and a lack of disposable income determine their consumption patterns. Consumers as a whole, have become more cost-conscious, which has resulted in the popularity of off-trade alcohol consumption, i.e. purchasing alcohol for home enjoyment rather than consuming it at bars, restaurants, or other venues. This trend is driven by affordability and convenience, with consumers increasingly opting to enjoy their favourite beverages in the comfort of their homes. Cider/perry showed the strongest growth in off-trade consumption, which was most likely driven by core brands such as Savanna, which proved popular among younger consumers, who look to consume these drinks at home.
What next for alcoholic drinks?
Alcoholic drinks in South Africa is poised for significant growth over the forecast period, driven by rising urbanisation rates and stable inflation. As more people relocate to urban areas in South Africa, the demand for social and leisure activities, including the consumption of alcoholic beverages, is expected to rise. This trend will be further bolstered by the stabilisation of inflation, which will likely increase consumer spending power. Beer, the largest category, will continue to dominate volume sales due to its widespread popularity. Beer appeals to a broad spectrum of consumers, from those seeking affordable, locally produced options to those who prefer premium and imported varieties. This versatility ensures that beer remains a staple in both casual and premium settings. RTDs should experience robust growth over the next five years. RTDs benefit from trendy marketing and innovative packaging, which resonates particularly well with younger adults who are increasingly looking for convenient, stylish, and socially relevant drinking options. These factors, combined with the growing urban population, are expected to drive overall volume sales of alcoholic drinks in South Africa.
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Overview:
Understand the latest market trends and future growth opportunities for the Alcoholic Drinks industry in South Africa with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Beer
- Wine
- Spirits
- Cider and Perry
- RTDs
If you're in the Alcoholic Drinks industry in South Africa, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty
The Alcoholic Drinks in South Africa report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Alcoholic Drinks in South Africa?
- Where is consumer demand for Alcoholic Drinks focussed?
- Which is being consumed more; beer, wine or spirits?
- Where is demand growing? Stagnating?
- How is the operating environment for alcoholic drinks changing?
- Which are the leading brands in South Africa?
- How are products distributed in South Africa?
- What are the key trends in new product development?
- Do consumers want value for money or added value?
- How will macroeconomic context and shifting cultural values shape future growth?
- How will COVID-19 and recession impact the alcoholic drinks industry?
- Where is future growth expected to be most dynamic?
Alcoholic Drinks in South Africa
Alcoholic drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
On-trade vs off-trade split
What next for alcoholic drinks?
Legislation
Legal purchasing age and legal drinking age
Drink driving
Advertising
Smoking ban
Opening hours
On-trade establishments
TAXATION AND DUTY LEVIES
Contraband/parallel trade
Duty free
Cross-border/private imports
Outlook
DISCLAIMER
Beer in South Africa
KEY DATA FINDINGS
Slowdown in volume growth of this popular beverage
The South African Breweries Ltd remains dominant in beer
Drink specialists dominate in beer distribution
Beer sales are forcast to remain stable
Rising awareness of health/wellness to alter preferences
Supply chain optimisation will aid competitiveness
Lager price band methodology
Cider/Perry in South Africa
KEY DATA FINDINGS
Economic pressures suppress cider/perry growth
Distell Group Ltd dominates the cider/perry category
Convenience of liquor stores supports this specialist channel
Flat growth rates for cider/perry over the forecast period
Promotional activity will drive sales for the category
Players to explore non/low alcohol segment with focus on affordability
Rtds in South Africa
KEY DATA FINDINGS
Strong demand for RTDs in South Africa
Brutal Fruit and Bernini continue to dominate RTDs
Alcoholic drinks stores remain the most popular retail channel for RTDs
Buoyant outlook for RTDs
Canned beverages add convenience as a packaging choice
Affordability and convenience to remain elements supporting growth of RTDs
Spirits in South Africa
KEY DATA FINDINGS
Spirits displays modest growth largely driven by gin and vodka
Distell Group Ltd and Diageo South Africa hold strong positions in spirits category
Specialised liquor stores remain the leading channel within spirits
Consistent growth driven by affordability and premiumisation
Strong growth prospects for non-alcoholic spirits
Small batch and craft products are moving into other spirits categories
Vodka, gin, other blended Scotch whisky, dark rum and white rum price band methodology
Wine in South Africa
KEY DATA FINDINGS
South African wine industry shows resilience amid economic challneges
Innovative packaging continues to shape the wine industry and drive growth
Supermarkets remain the leading distribution channel through innovative colaborations with local wine brands
Wine is expected to see modest growth in line with recent trends
Non-alcoholic wines and technological innovation set to drive growth
Some uncertainty for wine exporters within South Africa
The following categories and subcategories are included:
Alcoholic Drinks
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- Ale
- Sorghum
- Weissbier/Weizen/Wheat Beer
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- Flavoured/Mixed Lager
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- Domestic Premium Lager
- Imported Premium Lager
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- Domestic Mid-Priced Lager
- Imported Mid-Priced Lager
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- Domestic Economy Lager
- Imported Economy Lager
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- Domestic Premium Lager
- Domestic Mid-Priced Lager
- Domestic Economy Lager
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- Imported Premium Lager
- Imported Mid-Priced Lager
- Imported Economy Lager
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- Low Alcohol Beer
- Non Alcoholic Beer
- Stout
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- Regular Cider/Perry
- Non Alcoholic Cider/Perry
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- Malt-based RTDs
- Spirit-based RTDs
- Wine-based RTDs
- Other RTDs
- Non Alcoholic RTDs
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- Brandy
- Cognac
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- Bitters
- Cream-based Liqueurs
- Other Liqueurs
- Non Alcoholic Spirits
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- Prestige Dark Rum
- Ultra Premium Dark Rum
- Super Premium Dark Rum
- Premium Dark Rum
- Standard Dark Rum
- Economy Dark Rum
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- Prestige White Rum
- Ultra Premium White Rum
- Super Premium White Rum
- Premium White Rum
- Standard White Rum
- Economy White Rum
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- Tequila (and Mezcal)
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- Bourbon/Other US Whiskey
- Canadian Whisky
- Irish Whiskey
- Japanese Whisky
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- Blended Malt Scotch Whisky
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- Prestige Other Blended Scotch Whisky
- Ultra Premium Other Blended Scotch Whisky
- Super Premium Other Blended Scotch Whisky
- Premium Other Blended Scotch Whisky
- Standard Other Blended Scotch Whisky
- Economy Other Blended Scotch Whisky
- Single Grain Scotch Whisky
- Single Malt Scotch Whisky
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- Other Whiskies
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- Prestige English Gin
- Ultra Premium English Gin
- Super Premium English Gin
- Premium English Gin
- Standard English Gin
- Economy English Gin
- Dutch Gin
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- Prestige Vodka
- Ultra Premium Vodka
- Super Premium Vodka
- Premium Vodka
- Standard Vodka
- Economy Vodka
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- Absinthe
- Ad-Mix Brandy
- Ad-Mix Gin
- Ad-Mix Rum
- Ad-Mix Vodka
- Ad-Mix Whisky
- Aguardente/Aguardiente
- Aguardiente De Caña
- Akvavit/Aquavit
- Aniseed-Flavoured Spirits
- Borovicka
- Boukha
- Brandy Type Distilled Spirits
- Cachaça
- Calvados
- Cane
- Chacha
- Charanda
- Chinese Herbal Spirits
- Chinese Spirits
- Cut Brandy
- Destilados De Agave
- Distilled Fruit Spirits
- Domestic Brandy
- Domestic Rum
- Doppelkorn
- Economy Chinese Spirits
- Flavoured Spirits
- Flavoured Vodka-based Drinks
- Fynbos gin/Local Gin
- Gin-flavoured spirits
- Goldbrand/Goldkrone
- Grappa
- Grappamiel
- Guaro
- Kirsch
- Komovica
- Korn
- Lambanog
- Limoncello
- Local White Spirits
- Lower Mid-Range Chinese Spirits
- Lozovaca
- Maesilju
- Mahia Rabi Amrane
- Mead
- Mixed Spirits
- Nalivka/Nalewka
- Nastoyka
- National Specialities
- Obstbrände
- Ouzo
- Pacharán
- Palinca/Pálinka
- Pear and Apple Distillates
- Pisco
- Premium Chinese Spirits
- Prune
- Punsch
- Rachiu/Rakija
- Rum-Flavoured Spirits
- Samane
- Sambuca
- Samsu
- Schnapps
- Shochu/Soju
- Singani
- Sljivovica/Slivovice
- Steinhäeger
- Strong African Spirits
- Super Premium Chinese Spirits
- Sura Khao
- Tequila Flavoured Spirits
- Travarica
- Tsipouro
- Upper Mid-Range Chinese Spirits
- Vieux
- Viina
- Vodka Type Distilled Spirits
- Other Distilled Beverages
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- Port
- Sherry
- Vermouth
- Other Fortified Wine
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- Apple Wine
- Bokbunjaju
- Cheongju
- Chinese Wine
- Economy Rice Wine
- Fortified Fruit Wine
- Fruit and Berry Wine
- Fruit and Herbal Wine
- Fruit and Honey based Wine
- Fruit Wine
- Lower Mid-Range Rice Wine
- Non-Grape Dessert Wine
- Premium Rice Wine
- Sake
- Takju
- Upper Mid-Range Rice Wine
- Yakju
- Yellow Wine
- Other Non-Grape Wine
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- Champagne
- Other Sparkling Wine
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- Still Red Wine
- Still Rosé Wine
- Still White Wine
- Non Alcoholic Wine
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
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This report originates from Passport, our Alcoholic Drinks research and analysis database.
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