Insights into the Growth of Tequila in South Africa’s On Premise Sector

CGA’s insights reveal that 26% of South African consumers choose tequila, ranking it fourth among spirits. The market is predominantly young and female, with pricing and brand image critical for sales. There are opportunities, particularly in the super-premium segment, cocktails, and bottle serves, as the tequila sector shows promising growth prospects moving into 2025.

CGA’s On Premise User Survey provides valuable insights into the tequila market in South Africa, highlighting consumer preferences and trends. Tequila is currently the fourth largest spirits category, consumed by 26% of patrons at bars and restaurants, trailing behind gin, vodka, and whiskey. The market is predominantly youthful and female, with 73% of consumers aged 18 to 34, and 67% identifying as female. White silver tequila holds the top preference among drinkers.

Pricing significantly influences consumer choices; 34% of tequila drinkers prioritize good value for money over the quality of the spirit. Furthermore, brand reputation matters, with 60% of consumers requesting specific tequila brands when ordering. There is ample opportunity in the super-premium segment, where 41% of tequila drinkers frequently select these brands, resulting in spending of R1,292 monthly—13% more than the average tequila consumer.

Super-premium tequila drinkers can be specifically targeted for promotional offers. This demographic is 16 percentage points more likely to be within the 18 to 34 age bracket and 15 percentage points more likely to be female. They generally possess a broader selection of brands, averaging 4.1 choices compared to just 2.8 among all tequila drinkers.

Furthermore, tequila presents growth potential in cocktails and bottle servings. While 59% of consumers enjoy tequila as a shot, only 33% currently incorporate it into cocktails, indicating a substantial growth opportunity. Additionally, 72% have ordered a bottle when dining out and a third of them do so regularly, showing that celebrations and promotions can stimulate bottle sales.

Abhi Sehgal, the client solutions manager at CGA by NIQ, stated that “we’re seeing tequila delivering good rates of growth in many territories, and consumer interest is particularly strong in South Africa.” He emphasized that with the right positioning and value, opportunities for increased sales will emerge, especially as the market progresses into 2025. Adjustments to offerings focusing on cocktails, bottle serves, and the super-premium category will be crucial for success. OPUS serves as a primary resource for understanding consumer behavior in this space.

In summary, South Africa’s tequila market reveals significant potential for growth, particularly in the youthful, female demographic. Price and brand image are pivotal for consumer decisions, with a noteworthy inclination towards super-premium tequilas. By targeting specific consumer segments and promoting tequila in cocktails and bottle serves, businesses can capitalize on the current interest in this spirit. The future of the market looks promising as it navigates through evolving consumer demands and preferences.

Original Source: cgastrategy.com