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.
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.
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.
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.
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.
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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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
See all of our definitionsThis report originates from Passport, our Alcoholic Drinks research and analysis database.
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