+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

South Africa Beverages Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

  • PDF Icon


  • 103 Pages
  • October 2021
  • Region: South Africa
  • Mordor Intelligence
  • ID: 5448487
UP TO OFF until Sep 30th 2023

The South African savory snacks market was valued at USD 16,565.37million in 2020, and it is projected to reach a CAGR of 5.02 % during the forecast period (2021-2026).

The world has been hit by an unprecedented health threat in the shape of COVID-19, which has impacted the global economy, global supply lines, and nations indiscriminately. The South African (SA) and worldwide food and beverage manufacturing industries were quick to respond to the COVID-19 challenge. With the exception of alcohol producers and distributors, a major portion of firms in South Africa (SA) stayed operational during the lockdown period since the Food and Beverage Manufacturing industry offers a vital service of food. However, production was hampered by interruptions in the global and local supply chains. High-value commodities of fresh fruit, vegetables were affected by the potential shortage of migrant seasonal labor for fruit picking, harvesting, etc. Lockdowns disrupted the transportation of packaged foods, prepared foods, and non-alcoholic and alcoholic beverages, whilst some companies had to close for up to two weeks for cleaning purposes. In addition, the capacity constraints due to social distancing in the workplace lead to operational challenges.South Africa’s alcoholic beverage industry has been hit hard by COVID-19 lockdown regulations, as the sale and export of alcohol is prohibited under the disaster regulations governing the national lockdown in South Africa.

Over the medium term,the wider availability of brands and products in the market studied, together with the continued strength of well-positioned brands, have been the main drivers of growth in the beverages market across the country, and the demand for premium drinks, particularly, is expected to increase the market potential during the forecast period.Moreover, many local players have been introducing fruit hops in the preparation of craft beer, in order to remove its bitter taste and provide a smooth and juicy mouthfeel.With a rise in the number of social drinkers, particularly in the African countries, on account of improving economic scenario and growing middle-class population, the demand for beer has increased.Alcohol-free and low alcohol beer have also gained popularity, especially among young consumers trying to make positive lifestyle choices and manage their alcohol intake. Beer manufacturing companies are also introducing several new products and brands to expand their consumer base.Additionally, the rising influence of social media, increasing internet penetration, and growth of the e-commerce sector have enabled manufacturers to create improved retailing channels and market presence.The market has witnessed a significant growth, due to the fast-paced and busy lifestyles, pushing consumers to switch to quick and healthy options that starts to benefit as soon as they consume it. This has resulted in the increased penetration of sports and energy drinks in various retail outlets in the country.

Key Market Trends

Shift in Consumer Behavior Toward Low or Non-alcohol Beverages.

One of the most important trends of the beer market is the shift in consumer preference towards low and non-alcohol beers, as well as craft beers. While alcohol consumption has decreased, beer consumption has increased. Furthermore, due to the premiumization, which has significantly impacted the market in recent years, beer producers across the region have been more focused on quality instead of quantity. The market has witnessed an increased proliferation of smaller and independent breweries, which are selling locally and directly to consumers. They are trying to create a unified experience for their customers by inviting them into the breweries to taste and learn more about the whole process.Most notably, craft gin producers and microbreweries are popping up across the country and resonate with millennials seeking to associate an individual and a personality for their spirits purchases. While gin leads this craft spirit shift, there is also an increasing interest in craft rum.Alongside healthy and functional drinks that compete directly with traditional soft drinks, the market for low- and no-alcohol drinks suitable for special occasions is rising steeply. Younger adults again are thought to be the driving force behind the segment, as several market researchers have found this demographic in choosing to drink less alcohol than their parents.

Increasing Expenditure on Advertisement and Promotional Activities​

Beverages, both alcoholic and non-alcoholic, are gaining massive popularity among the millennial population, mainly due to the aggressive marketing campaigns targeted toward young consumers. Moreover, advertisements are promoting beverages as drinks that ignite the mind, refresh the body, and enhance performance and stamina.​Companies are investing more in identifying the market gap, along with building the brand image through already existing ideas and concepts. Key players are also adopting innovative approaches for marketing and advertising, necessary to drive the sales of their products. Additionally, growth in advertisement and promotional activities is influencing the demand for sports beverages from different consumer groups in the country.​Companies are also focusing on market endorsements to promote their public image and strengthen brand power. Many famous personalities are associated with brands and are endorsing specific products. Moreover, several key players’ promotional expenses result from payments under endorsement and sponsorship contracts. Furthermore, some brands continued to disproportionately target TV ads to teens and African youth. The increased advertising spends occurred at the same time, the major beverage companies pledged to reduce calories in beverages and increase marketing of lower-calorie drinks.

Competitive Landscape

The South African alcoholic beverages market segment is dominated by global players, and it holds a large market share in the country. Anheuser-Busch InBev NV and Distell Group Limited have the hold a prominent share in the alcoholic beverage segment of the country whereas the Coco-Cola Company holds a prominent position in the South African non-alcoholic beverages market segment. Manufacturers are increasing their investments in R&D and marketing, and they are expanding their distribution channels in order to maintain their positions in the market. Moreover, the global players in the market are focusing on leveraging the opportunities offered by the emerging segments, like reduced sugar, plant-based, gluten-free, soy-free, and non-GMO products. The major players are focusing on providing consumers with innovative offerings while including functional benefits in each of their products. The players in the region are reducing the sugar content in their products, in order to mitigate the sugar content-related taxes.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Degree of Competition
5.1 By Product Type
5.1.1 Alcoholic Beverages Beer Wine Spirits
5.1.2 Non-alcoholic Beverages Energy & Sport Drinks Carbonated Soft Drinks Tea & Coffee Other Non-alcoholic Beverages
5.2 By Distribution Channel
5.2.1 Supermarkets/Hypermarkets
5.2.2 Convenience Stores
5.2.3 Online Retail Stores
5.2.4 Other Distribution Channels
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 PepsiCo Inc.
6.3.2 Coco-Cola Company
6.3.3 Red Bull GmbH
6.3.4 Anheuser-Busch InBev NV
6.3.5 Ekhamanzi Springs (Pty) Ltd
6.3.6 Kingsley Beverages
6.3.7 Carlsberg Group
6.3.8 Twizza Soft Drinks (Pty) Ltd

Companies Mentioned

A selection of companies mentioned in this report includes:

  • PepsiCo Inc.
  • Coco-Cola Company
  • Red Bull GmbH
  • Anheuser-Busch InBev NV
  • Ekhamanzi Springs (Pty) Ltd
  • Kingsley Beverages
  • Carlsberg Group
  • Twizza Soft Drinks (Pty) Ltd