Spirits - South Africa | Statista Market Forecast

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Spirits market amounts to US$1.0bn in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$116.7m in 2024.
Revenue, combined amounts to US$1.2bn in 2024.
The revenue, at home is expected to grow annually by 2.33% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated China (US$146bn in 2024).
In relation to total population figures, the average revenue per capita, at home of US$16.95 are generated in 2024.
In the Spirits market, volume, at home is expected to amount to 96.1m L by 2024.
Volume, out-of-home is expected to amount to 4.3m L in 2024.
Volume, combined is expected to amount to 100.4m L in 2024.
The Spirits market is expected to show a volume growth, at home of -2.6% in 2025.0.
The average volume per person, at home in the Spirits market is expected to amount to 1.57L in 2024.

Definition:

The Spirits market includes alcoholic beverages that have been produced through the distillation of wine, fermented fruits, or grains. Due to the distillation process, the alcohol content of spirits is much higher than that of most wines and beers, typically ranging from 20% to 50% alcohol by volume (ABV).

Structure:

The Spirits market is divided into 8 markets:

The Whisky market encompasses spirits on a grain basis that have been aged in wooden casks for a duration of at least three years.
The Vodka market encompasses spirits based on grain and/or potatoes.
The Rum market encompasses spirits based on sugar cane.
The Gin market encompasses spirits based on juniper berries.
The Brandy market encompasses spirits based on fermented fruit juice.
The Tequila market encompasses spirits made primarily from the blue agave plant (Agave tequilana) in Mexico.
The Soju market encompasses the Korean distilled beverage, Soju, which is traditionally made from rice, barley, or sweet potatoes.
The Liqueurs & Other Spirits market encompasses all other spirits not previously mentioned as well as Ready-to-Drink (RTD) cocktails.

Additional information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per liter, as well as sales channels. Per capita figures refer to a country’s or region’s whole population.

At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. All prices are valued at retail selling prices, including all sales and consumption taxes.

Key players include Diageo (e.g., Johnnie Walker, Smirnoff, and Tanqueray), Pernod Ricard, and Kweichow Moutai.

Whisky, such as Jack Daniel's Tenessee Whiskey
Vodka, such as Absolut Vodka
Rum, such as Bacardi Rum
Gin, such as Ginebra San Miguel
Brandy, such as Ararat Brandy

Wine, such as Red Wine
Beer, such as Budweiser
Non-Alcoholic Spirits, such as Tanqueray 0.0

The Spirits market in South Africa has been experiencing steady growth in recent years. Customer preferences for premium and craft spirits, as well as the increasing popularity of cocktails, have contributed to this development. Additionally, local special circumstances such as the country's rich history of wine production and the growing tourism industry have also played a role in shaping the market. Customer preferences in the South African Spirits market have shifted towards premium and craft offerings. Consumers are increasingly willing to spend more on high-quality spirits, seeking unique flavor profiles and artisanal production methods. This trend is in line with global market patterns, as consumers worldwide are becoming more discerning and knowledgeable about spirits. In South Africa, this preference for premium and craft spirits is also driven by the growing middle class and their increasing disposable income. Another factor driving the growth of the Spirits market in South Africa is the rising popularity of cocktails. Cocktails have become a fashionable and social trend, with consumers enjoying the experience of trying new and creative drink combinations. This has led to increased demand for a wide range of spirits, including vodka, gin, rum, and tequila, which are essential ingredients in many popular cocktails. The growing cocktail culture is also supported by the proliferation of bars and restaurants that specialize in mixology and offer a diverse selection of spirits and cocktails. In addition to customer preferences, local special circumstances have also contributed to the development of the Spirits market in South Africa. The country has a rich history of wine production, which has created a culture of appreciation for alcoholic beverages. This culture extends to spirits, with consumers showing a keen interest in exploring different types of spirits and learning about their production processes. Furthermore, South Africa's tourism industry has been growing steadily, attracting international visitors who are eager to experience the country's diverse culinary and beverage offerings. This has created a demand for locally produced spirits, as tourists seek to sample and bring home unique souvenirs. Underlying macroeconomic factors have also played a role in the growth of the Spirits market in South Africa. The country's economy has been relatively stable in recent years, with a growing middle class and increasing consumer purchasing power. This has allowed consumers to indulge in higher-priced spirits and explore new products. Furthermore, the government has implemented favorable policies to support the growth of the alcohol industry, including the reduction of excise duties on certain spirits. These policies have encouraged investment in the sector and stimulated market competition, leading to a wider variety of spirits available to consumers. Overall, the Spirits market in South Africa is developing in response to customer preferences for premium and craft spirits, the rising popularity of cocktails, local special circumstances such as the country's wine production history and growing tourism industry, and underlying macroeconomic factors such as a stable economy and favorable government policies. As these trends continue to shape the market, it is expected that the Spirits sector in South Africa will continue to grow and diversify 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.

This report presents a comprehensive analysis and additional information on the Consumer market, in a PDF format.

The term “spirits” refers to an alcoholic beverage that has been distilled, contains no added sugar, and has at least 20 percent alcohol by volume. The term is derived from the medieval practice of alchemy and refers to the essential liquid element obtained from a substance through distillation, the “spirit” of the substance, so to speak. Popular spirits include whiskey, rum, vodka, tequila, and gin, among others.