Market Trends of South Africa Beverages Industry
Increased Consumption of Alcoholic Beverages
- The alcoholic beverages segment in South Africa is anticipated to grow with an increased number of social drinkers. Changing consumer preferences toward low-alcohol and craft beers and the rising premiumization trend associated with low alcohol content encourage manufacturers to produce high-quality products.
- For instance, in March 2021, South African Breweries (SAB), a subsidiary of AB InBev, launched low-alcohol Flying Fish Seltzer beer in the country. The company claims that Flying Fish Seltzer beer is formulated with 5.5% ALC/VOL and contains 35 calories per 100 ml. It comes in a premium 300 ml slim can with two flavors: lemon and raspberry.
- Furthermore, the market has witnessed an increased proliferation of smaller and independent breweries selling locally and directly to consumers. This trend is not unique to South Africa and reflects a global shift towards more niche and artisanal products as consumers increasingly seek unique and personalized experiences.
Understand The Key Trends Shaping This Market
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Functional Beverages in Trend
- Functional beverages are becoming increasingly popular among consumers, especially millennials, due to increased advertising, promotional spending, and health consciousness among the wider population. Additionally, ads for energy drinks portray them as beverages that energize the intellect, revive the body, and improve performance and stamina.
- Moreover, functional beverages in South Africa are witnessing a growth phase with new flavor formulations, reduced sugar and calories, and ingredient innovations such as botanicals and herbs. For instance, Coca-Cola, South Africa, offers an energy drink called Coca-Cola Energy. The drink, available in a 300-ml can, contains caffeine, guarana extracts, B vitamins, and no taurine.
- Key players in the market are offering new products fortified with additional nutrition to enhance their market position in the country. For instance, Red Bull South Africa offers Red Bull Green energy drinks fortified with B vitamins, amino acids, and natural sugar (beet sugar) to cater to consumer demand for low-sugar functional beverages, per the company's claims.
