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An analysis of spirits in South Africa
BRAND ACTIVITY
Jan 24th 2012, 14:05
The volume of spirits consumed in South Africa has been relatively flat for a number of years, but value continues to show good growth.
The market value performance had regularly exceeded the volume performance, with growth for these two measures at 11.2% and 2.3% respectively. While there may be little growth in volume, players are continually trying to develop more educated and pedantic consumer tastes, with the consequent move to more expensive brands. These older, smoother variants demand much higher prices, consequently leading to market value growth.
There is currently a clear split in consumer age demographics. Younger consumers make the shift to more expensive but fairly staid brands as they get older. Premium spirit brands maintain great loyalty among the older generations.
For those volumes packed locally, glass is the single dominating pack type. Given the recent transition of wine brands to the use of PET packaging, it remains to be seen whether the spirits market will follow suit.
The outlook for the category remains conservative with only limited volume growth anticipated in future. Click here for more information on BMI Research
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