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An executive summary of the study reveals a promising outlook for South Africa’s on-premise beverage market, particularly in the spirits and cocktails sectors.
Despite ongoing economic challenges, including a cost-of-living crisis, South Africans continue to prioritise dining and drinking out, with half of the population visiting on-premise venues weekly.
CGA by NIQ Client Solutions Manager for EMEA Abhi Sehgal explains, "Despite rising costs, South Africans' weekly visits to bars and restaurants highlight the nation’s strong appetite for social experiences. This suggests a resilient market, particularly among younger, affluent consumers who are willing to pay more for premium offerings.”
According to the CGA by NIQ OPUS South Africa Executive Summary, the frequency of on-premise visits remain high, with younger and more affluent consumers making up the majority of these frequent visitors.
This presents substantial opportunities for beverage brands and hospitality venues to align their offerings with key market trends and consumer preferences. Understanding these behaviours and tailoring products accordingly can provide significant competitive advantages.
One of the standout findings from the report is that nearly 49% of South Africans visit on-premise venues weekly, with an impressive 87% visiting at least once a month.
This frequency of visits underlines the enduring importance of out-of-home experiences in South African culture, where dining and drinking are central to leisure and social life.
Spirits and cocktails emerge as leading choices for on-premise consumers, with 27% of visitors consuming spirits and 38% opting for cocktails.
The rising popularity of cocktails is noteworthy, as 60% of cocktail drinkers enjoy them every time they visit a venue. This trend is especially pronounced among younger consumers and women, who are key drivers of demand in this category.
With cocktail consumption on the rise, there is a significant opportunity for brands to innovate and cater to this growing market segment.
The research identifies several areas of opportunity for businesses looking to succeed in South Africa’s on-premise market:
In conclusion, the report underscores the wide variety of occasions that draw South African consumers to on-premise venues.
From relaxed afterwork drinks to casual dining and lively celebrations, these frequent visits offer brands countless opportunities to tailor their offerings to specific contexts.
By tapping into these diverse touchpoints, businesses can deepen their engagement with consumers and drive increased sales.