South Africa Beverages Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The South African beverages market is segmented by Product Type (Alcoholic and Non-Alcoholic Beverages) and by Distribution Channel (On-trade and Off-trade). For each segment, the market sizing and forecasting have been done in value terms of USD million.

South Africa Beverages Industry Overview

South Africa Beverages Market Size
Study Period: 2018 - 2028
CAGR: 5.02 %

Major Players

South Africa Beverages Market Major Players

*Disclaimer: Major Players sorted in no particular order


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South Africa Beverages Market Analysis

The South African beverages market is projected to reach a CAGR of 5.02 % during the forecast period (2022-2027).

Lockdowns imposed due to the Covid-19 pandemic disrupted the transportation of 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. An article published by Multidisciplinary Digital Publishing Institute (MDPI) on Analysis of the Impact of COVID-19 on the food and beverages manufacturing sector, projected that due to COVID-19, the South African food and non-alcoholic beverages manufacturing went through a moderate decline in the flow of income (−10% to −30%), whereas the alcoholic beverages sector is experiencing a bigger impact of −60%.

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.

Further, 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.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.

South Africa Beverages Industry Segments

A beverage is any drink that is consumed by people which generally includes tea, coffee, liquor, beer, milk, juice, or soft drinks. The South African beverages market is segmented into product types and distribution channels. By product type, the market can be segmented into alcoholic and non-alcoholic beverages. The alcoholic beverage segment is further segmented into beer, wine, and spirits. Non-alcoholic beverages are segmented into energy and sports drinks, carbonated soft drinks, tea & coffee, and others. By distribution channel, the market covers major distribution channels, such as on-trade and off-trade. Off-trade channels are further sub-segmented as supermarket/hypermarket, convenience stores, online retail stores, and others. For each segment, the market sizing and forecasting have been done in value terms of USD million.

By Product Type
Alcoholic Beverages
Non-Alcoholic Beverages
Energy & Sport Drinks
Carbonated Soft Drinks
Tea & Coffee
Other Non-alcoholic Beverages
By Distribution Channel
Convenience Stores
Online Retail Stores
Other Distribution Channels

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South Africa Beverages Market Trends

This section covers the major market trends shaping the South Africa Beverages Market according to our research experts:

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.

South Africa Beverages Market Share

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 spending occurred at the same time, the major beverage companies pledged to reduce calories in beverages and increase marketing of lower-calorie drinks.

South Africa Beverages Market Growth

South Africa Beverages Market Competitor Analysis

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. 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.

South Africa Beverages Market Top Players

  1. Anheuser-Busch InBev NV

  2. PepsiCo Inc.

  3. Coca Cola

  4. Kingsley Beverages

  5. Diageo PLC

*Disclaimer: Major Players sorted in no particular order

Anheuser-Busch InBev, NV PepsiCo Inc, Coca Cola, Kingsley Beverages, Diageo PLC

South Africa Beverages Market Recent Developments

In August 2021- Castle, a South African Breweries brand, launched the country’s first double-malt beer, known as Castle Double Malt.

In June 2021- Twizza, announced a partnership with Eastern Cape rugby superhero Makazole Mapimpi; This partnership is based on the synergies between the brand and player. Like Makazole; this will help the brand to improve the brand reach with the help of the star image of the player.

In March 2020- Anheuser-Busch InBev subsidiary Castle launched a new packaging format to suit the lifestyles and changing demands of consumers. Ceres invested RMB 100 million in SIG Combismile, a packaging solution. This packaging is the first of its kind in the Middle East & African region (EMA). The new carton has a curved shape, which is easy to grip, thereby making it more convenient to enjoy the product on the go.

South Africa Beverages Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitutes

      5. 4.3.5 Degree of Competition


    1. 5.1 By Product Type

      1. 5.1.1 Alcoholic Beverages

        1. Beer

        2. Wine

        3. Spirits

      2. 5.1.2 Non-Alcoholic Beverages

        1. Energy & Sport Drinks

        2. Carbonated Soft Drinks

        3. Tea & Coffee

        4. Other Non-alcoholic Beverages

    2. 5.2 By Distribution Channel

      1. 5.2.1 Supermarkets/Hypermarkets

      2. 5.2.2 Convenience Stores

      3. 5.2.3 Online Retail Stores

      4. 5.2.4 Other Distribution Channels


    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 PepsiCo Inc.

      2. 6.3.2 Coco-Cola Company

      3. 6.3.3 Red Bull GmbH

      4. 6.3.4 Diageo PLC

      5. 6.3.5 Anheuser-Busch InBev NV

      6. 6.3.6 Ekhamanzi Springs (Pty) Ltd

      7. 6.3.7 Kingsley Beverages

      8. 6.3.8 Carlsberg Group

      9. 6.3.9 The Beverage Company

      10. 6.3.10 Twizza Soft Drinks (Pty) Ltd

    4. *List Not Exhaustive


**Subject to Availability
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South Africa Beverages Market Research FAQs

The South Africa Beverages Market is studied from 2018 - 2028.

The South Africa Beverages Market is growing at a CAGR of 5.02% over the next 5 years.

Anheuser-Busch InBev NV , PepsiCo Inc. , Coca Cola, Kingsley Beverages , Diageo PLC are the major companies operating in South Africa Beverages Market.

South Africa Beverages Industry Reports

In-depth industry statistics and market share insights of the South Africa Beverages sector for 2020, 2021, and 2022. The South Africa Beverages research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the South Africa Beverages report PDF.

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