Beer - South Africa

The Beer market in South Africa has been experiencing significant growth and development in recent years.

Customer preferences: South Africans have a strong affinity for beer, with it being the most popular alcoholic beverage in the country. This preference can be attributed to the cultural significance of beer in South African society, as well as its affordability compared to other alcoholic beverages. Additionally, South Africans have shown an increasing interest in craft beer, with a growing number of microbreweries and brewpubs catering to this demand.

Trends in the market: One of the key trends in the South African beer market is the shift towards premium and craft beers. This trend can be seen as a reflection of changing consumer preferences, with an increasing number of consumers seeking out unique and high-quality beer options. As a result, both local and international breweries have been expanding their product offerings to include a wider range of premium and craft beers. Another trend in the market is the growing popularity of flavored beers. This trend can be attributed to the desire for variety and new taste experiences among consumers. Flavored beers, such as fruit-infused or spiced beers, have gained traction in the South African market, appealing to a younger demographic who are looking for innovative and refreshing options.

Local special circumstances: South Africa has a unique beer culture that is influenced by its diverse population. The country has a rich brewing tradition, with a variety of beer styles and flavors that cater to different tastes and preferences. Additionally, South Africa has a vibrant social scene, with beer being a popular choice for socializing and celebrations. This cultural context has contributed to the growth and development of the beer market in the country.

Underlying macroeconomic factors: The South African beer market has been positively influenced by several macroeconomic factors. Firstly, the country has a relatively stable economy, which has created a favorable environment for businesses to operate and invest in the beer industry. Additionally, South Africa has a growing middle class, which has led to an increase in disposable income and consumer spending on beer. Finally, the country has a large and young population, which provides a significant consumer base for the beer market. In conclusion, the Beer market in South Africa is experiencing growth and development due to changing customer preferences, including a shift towards premium and craft beers, as well as the popularity of flavored beers. The local special circumstances, such as the country's unique beer culture and vibrant social scene, contribute to the market's growth. Furthermore, underlying macroeconomic factors, such as a stable economy and a growing middle class, provide a favorable environment for the beer market in South Africa.

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.