South Africa Beverages Market Size (2024 - 2029)

South African Beverage Market Analysis

The South African beverages market size is expected to grow from USD 19.01 billion in 2023 to USD 24.47 billion by 2028, at a CAGR of 5.19% during the forecast period (2023-2028).

• The South African beverage market has experienced significant growth in recent years due to various factors, including changing dietary patterns and preferences of consumers. Due to busy schedules, consumers opt for quick and on-the-go beverage options that offer immediate benefits such as energy, hydration, or nutrition. This, in turn, has increased the demand for bottled water, energy drinks, sports drinks, and ready-to-drink tea and coffee, among other products.
• Moreover, organic, plant-based, and functional beverages are gaining immense traction with consumers' increasing preference for healthier and more natural beverage options. Furthermore, the demand for premium alcoholic drinks in South Africa has been growing and is projected to continue during the forecast period. Local players have been introducing fruit hops in preparing craft beer, which has become popular among consumers. This strategy allows the companies to position their products as premium, bolstering market growth.
• Besides this, with a rise in social drinking trends due to cocktail culture and the growing urban population, the demand for alcoholic beverages, including beer, has increased. On the other hand, alcohol-free and low-alcohol beer has 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.

South African Beverage Industry Segmentation

A beverage is any drink intended for human consumption, such as 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 is 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 other drinks. By distribution channel, the market covers major distribution channels, such as on-trade and off-trade. Off-trade channels are further sub-segmented into supermarkets/hypermarkets, convenience stores, online retail stores, and other channels.

For each segment, the market sizing and forecasting have been done in value terms of USD.