Report Overview

South Africa Beer Market – Industry Trends & Forecast Report, 2030

South Africa Beer Market size by value was estimated at USD 3.5 billion in 2023. During the forecast period between 2024 and 2030, South Africa Beer Market size is expected to expand at a CAGR of 6.70% reaching a value of USD 6.0 billion by 2030. South Africa Beer Market is driven by a combination of cultural, economic, and demographic factors. The country has a rich beer culture, with beer being a popular beverage among various age groups and social classes. This cultural preference is reinforced by a robust tradition of social drinking and the presence of numerous local breweries that cater to diverse tastes. Additionally, the rise in disposable income among South Africans has led to increased consumer spending on premium and craft beers, further fueling market growth.

By volume, South Africa Beer Market size was estimated at 3.1 billion liters in 2023. During the forecast period between 2024 and 2030, South Africa Beer Market size is projected to grow at a CAGR of 6.90% reaching a volume of 5.0 billion liters by 2030. The expanding urban population in South Africa is driving the growth of the beer market. Urbanization brings with it a lifestyle that often includes socializing in bars, restaurants, and clubs, where beer is a staple. The proliferation of modern retail channels, such as supermarkets and online stores, has also made beer more accessible to a broader audience. Furthermore, the marketing efforts by major beer brands and the introduction of innovative products have captured the interest of younger consumers, sustaining the market's upward trajectory.

Beer – Overview

Beer, a globally consumed alcoholic beverage, is brewed from cereal grains like barley, wheat, and maize. The global beer market is influenced by disposable incomes, urbanization, and evolving consumer preferences. Key players include multinational corporations and craft breweries. Environmental sustainability and health-conscious trends are driving innovations like low-alcohol and alcohol-free beers

South Africa Beer Market

Growth Drivers

Urbanization and Growing Middle Class

Urbanization and a burgeoning middle class are pivotal growth drivers for the South Africa Beer Market. As more people migrate to urban areas, there's increased exposure to diverse beer brands and consumption occasions. The expanding middle class has greater disposable income, boosting demand for premium and craft beers. This demographic shift creates a robust market for breweries, encouraging innovation and variety in beer offerings to cater to evolving tastes and preferences.

Challenges

High Excise Taxes on Alcohol Beverages

South Africa Beer Market faces significant constraints due to high excise taxes on alcohol, impacting consumer affordability and demand. These taxes inflate retail prices, discouraging consumption and limiting market growth. Moreover, they pose a challenge to local breweries and microbreweries, as higher production costs reduce their competitiveness against imported brands. The burden of these taxes also affects the overall economic contribution of the beer industry, potentially hindering employment and investment opportunities in the market.

Impact of Escalating Geopolitical Tensions on South Africa Beer Market

Intensifying and further spread of geopolitical tensions among countries across the major regions could adversely affect South African Beer Market in several ways. Increased uncertainty and risk can lead to economic instability, affecting consumer spending patterns and overall market demand. Disruptions in trade routes or sanctions could impact the availability of raw materials and increase import costs, potentially raising beer prices. Also, geopolitical tensions may influence investor confidence, affecting brewery expansions, investments in technology, and overall market growth. Additionally, economic and political instability can create regulatory uncertainties, impacting operational efficiency and market competitiveness. Overall, South African Beer Market, highly sensitive to economic conditions and consumer behavior, could experience reduced growth prospects amidst heightened geopolitical tensions, necessitating strategic adaptation and risk management from industry stakeholders.

South Africa Beer Market

Segmental Information

South Africa Beer Market – By Product Type

By product type, South Africa Beer Market is divided into Standard Beer, Premium Beer, and Specialty Beer segments. Standard beer is the largest, which encompasses widely consumed mainstream beers. Premium Beer, offering higher quality and often crafted with distinctive flavors, follows as the second largest segment. Specialty Beer, featuring unique brews such as craft beers or flavored variants, represents a smaller but growing niche within the market. These segments cater to diverse consumer preferences, contributing to the dynamic landscape of South Africa's beer industry.

South Africa Beer Market – By Production

Based on production, South Africa Beer Market is divided into Macro-Brewery and Micro-Brewery segments. The macro-brewery sector is the largest in South Africa Beer Market. It is characterized by large-scale production from established breweries. This segment dominates the market due to widespread distribution networks and brand recognition. Micro-breweries, while growing, constitute a smaller portion, focusing on craft and specialty beers often favored for unique flavors and local appeal. The market's dynamics reflect a balance between mass-produced offerings and niche, artisanal products catering to diverse consumer preferences.

South Africa Beer Market – By Type

By type, South Africa Beer Market is divided into High Alcohol, Low Alcohol, Alcohol-free segments. The high alcohol segment dominates the beer market in South Africa. The dominance is driven by consumer preference for traditional beer styles and craft beers with higher alcohol content. The segment appeals to a diverse demographic seeking bold flavors and premium brews. Low alcohol and alcohol-free segments also contribute to market growth, catering to health-conscious consumers and those seeking lighter drinking options. Overall, the high alcohol segment stands out as the dominant category in South Africa Beer Market.

South Africa Beer Market – By Flavour

Based on flavour, South Africa Beer Market is split into Flavored and Non-flavored segments. Non-flavored beer dominates the market as a larger flavor segment, contributing significantly to market share compared to flavored beer. This preference underscores a robust consumer demand for traditional beer varieties over flavored alternatives, shaping the market's overall composition and growth dynamics.

South Africa Beer Market – By Packaging Type

By packaging type, South Africa Beer Market is split into Glass, PET Bottle, and Metal segments. Glass packaging is the largest segment in South Africa Beer Market. The segment is surpassing PET bottles and metal packaging. This preference for glass is driven by factors such as consumer preference, environmental considerations, and perceived product quality. Glass packaging holds a significant share due to its traditional appeal and perceived premium image in the market, reflecting consumer trends towards sustainability and product preservation.

Competitive Landscape

Key players in the highly competitive South Africa Beer Market include South African Breweries (SAB), Heineken South Africa, Distell Group Limited, United National Breweries (UNB), AB InBev Africa, Devil's Peak Brewing Company, Woodstock Brewery, Darling Brew, and Mitchell's Brewery. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Product Type

• Standard Beer

• Premium Beer

• Specialty Beer

By Production

• Macro-Brewery

• Micro-Brewery

By Type

• High Alcohol

• Low Alcohol

• Alcohol-free

By Flavor

• Flavored

• Non-flavored

By Packaging Type

• Glass

• PET Bottle

• Metal

By Distribution Channel

• Supermarkets & Hypermarkets

• On-Trades

• Specialty Stores

• Convenience Stores

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. South Africa Beer Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Urbanization and growing middle class
         2. Strong brewing heritage and diverse consumer base
         3. Shifting consumer trends towards low- and no-alcohol beers
      2. Restraints
         1. High excise taxes on alcohol
         2. Economic inequality and poverty limiting consumption
         3. Power outages and water scarcity affecting production
      3. Opportunities
         1. Innovation in craft beer with unique flavours
         2. E-commerce and online delivery platforms
         3. Focus on responsible consumption and non-alcoholic options
      4. Challenges
         1. Addressing alcohol abuse and related social issues
         2. Impact of climate change on barley production
         3. Maintaining profitability amidst rising costs and taxes
   3. Technological Advancements/Recent Developments
   4. Consumer Insights
   5. Regulatory Framework
   6. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. South Africa Beer Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
         1. Standard Beer
         2. Premium Beer
         3. Specialty Beer
         4. Others
      2. By Production
         1. Macro-Brewery
         2. Micro-Brewery
         3. Others
      3. By Type
         1. High Alcohol
         2. Low Alcohol
         3. Alcohol-free
      4. By Flavor
         1. Flavored
         2. Non-flavored
      5. By Packaging Type
         1. Glass
         2. PET Bottle
         3. Metal
         4. Others
      6. By Distribution Channel
         1. Supermarkets & Hypermarkets
         2. On-Trades
         3. Specialty Stores
         4. Convenience Stores
         5. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. South Africa Beer Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Escalating Geopolitical Tensions on South Africa Beer Market
7. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. South African Breweries (SAB)
   2. Heineken South Africa
   3. Distell Group Limited
   4. United National Breweries (UNB)
   5. AB InBev Africa
   6. Devil's Peak Brewing Company
   7. Woodstock Brewery
   8. Darling Brew
   9. Mitchell's Brewery
   10. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1 South Africa Beer Segmentation

Figure 2 South Africa Beer Market Value Chain Analysis

Figure 3 Company Market Share Analysis, 2023

Figure 4 South Africa Beer Market Size, By Value (USD Million), 2019–2030

Figure 5 South Africa Beer Market Share, By Product Type, By Value, 2019–2030

Figure 6 South Africa Beer Market Share, By Production, By Value, 2019–2030

Figure 7 South Africa Beer Market Share, By Type, By Value, 2019–2030

Figure 8 South Africa Beer Market Share, By Flavor, By Value, 2019–2030

Figure 9 South Africa Beer Market Share, By Packaging Type, By Value, 2019–2030

Figure 10 South Africa Beer Market Share, By Distribution Channel, By Value, 2019–2030

List of Tables

Table 1 South Africa Beer Market Size, By Value (USD Million), 2019–2030

Table 2 South Africa Beer Market Share, By Product Type, By Value, 2019–2030

Table 3 South Africa Beer Market Share, By Production, By Value, 2019–2030

Table 4 South Africa Beer Market Share, By Type, By Value, 2019–2030

Table 5 South Africa Beer Market Share, By Flavor, By Value, 2019–2030

Table 6 South Africa Beer Market Share, By Packaging Type, By Value, 2019–2030

Table 7 South Africa Beer Market Share, By Distribution Channel, By Value, 2019–2030

Table 8         South African Breweries (SAB) Company Overview

Table 9         South African Breweries (SAB) Financial Overview

Table 10       Heineken South Africa Company Overview

Table 11       Heineken South Africa Financial Overview

Table 12       Distell Group Limited Company Overview

Table 13       Distell Group Limited Financial Overview

Table 14       United National Breweries (UNB) Company Overview

Table 15       United National Breweries (UNB) Financial Overview

Table 16       AB InBev Africa Company Overview

Table 17       AB InBev Africa Financial Overview

Table 18       Devil's Peak Brewing Company: Company Overview

Table 19       Devil's Peak Brewing Company Financial Overview

Table 20       Woodstock Brewery Company Overview

Table 21       Woodstock Brewery Financial Overview

Table 22       Darling Brew Company Overview

Table 23       Darling Brew Financial Overview

Table 108     Mitchell's Brewery Company Overview

Table 109     Mitchell's Brewery Financial Overview

Table 110     Other Prominent Players Company Overview