Hard Seltzer - South Africa

The Hard Seltzer market in South Africa has been experiencing significant growth in recent years, driven by changing consumer preferences and a shift towards healthier beverage options.

Customer preferences: South African consumers are increasingly seeking out low-calorie and low-sugar alternatives to traditional alcoholic beverages. Hard Seltzers, with their low calorie and low sugar content, have emerged as a popular choice among health-conscious consumers. Additionally, the younger demographic in South Africa is showing a growing interest in innovative and trendy alcoholic beverages, and Hard Seltzers fit the bill perfectly with their refreshing and fruity flavors.

Trends in the market: One of the key trends in the Hard Seltzer market in South Africa is the introduction of locally produced brands. While international brands initially dominated the market, local players have started to enter the scene, offering unique flavors that cater to the local taste preferences. This trend is driven by the desire to support local businesses and the growing demand for authentic, locally-made products. Another trend in the market is the increasing availability of Hard Seltzers in retail stores and online platforms. As more consumers become aware of the category and its benefits, retailers are expanding their product offerings to meet the demand. This has made it easier for consumers to access Hard Seltzers and try out different brands and flavors.

Local special circumstances: South Africa has a vibrant and diverse beverage market, with a strong culture of socializing and enjoying alcoholic beverages. However, traditional alcoholic beverages are often high in calories and sugar, which has led to a growing concern about health and wellness. Hard Seltzers, with their low-calorie and low-sugar profiles, offer a guilt-free alternative for consumers who want to enjoy a refreshing drink without compromising their health goals.

Underlying macroeconomic factors: The growth of the Hard Seltzer market in South Africa is also influenced by broader macroeconomic factors. The country has a young and growing population, with a rising middle class that has more disposable income to spend on leisure activities. This has contributed to an increase in the demand for premium and innovative alcoholic beverages, including Hard Seltzers. Furthermore, the COVID-19 pandemic has accelerated the shift towards at-home consumption and online shopping. As consumers spend more time at home and avoid crowded social settings, they are looking for convenient and enjoyable ways to relax and unwind. Hard Seltzers, with their ready-to-drink format and wide range of flavors, provide a convenient and enjoyable option for consumers to enjoy at home. In conclusion, the Hard Seltzer market in South Africa is experiencing growth due to changing consumer preferences, the introduction of local brands, increasing availability, and broader macroeconomic factors. As consumers continue to prioritize health and wellness, and seek out innovative and convenient beverage options, the demand for Hard Seltzers is expected to continue to rise.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.