CGA’s survey indicates that tequila is a growing market in South Africa, primarily among young and female consumers. Price and brand loyalty significantly influence purchasing decisions, with super-premium segments showing growth potential. Opportunities exist in cocktails and bottle services, and strategic insights can drive sales forward in 2025.
CGA’s On Premise User Survey reveals that just over 26% of South African consumers enjoy tequila in bars and restaurants, ranking it as the fourth largest spirits category after gin, vodka, and whiskey. This market is predominantly young and female, with 73% of drinkers aged 18 to 34, and 67% identifying as female. The most popular type among consumers is white silver tequila.
Pricing significantly impacts tequila sales, with 34% of consumers citing good value for money as a priority over quality when choosing their drinks. Additionally, brand image is essential, as 60% of tequila drinkers request a specific brand when ordering. There is substantial potential for suppliers and venues in the super-premium segment, where 41% of tequila consumers prefer high-end brands, spending an average of R1,292 monthly, which is 13% more than the average tequila drinker.
Super-premium customers can be effectively targeted for promotions, as they are 16 percentage points more likely to be aged 18 to 34 and 15 percentage points more female compared to all tequila consumers. They also tend to experiment with a broader range of brands, averaging 4.1 choices versus 2.8 in the general market.
While 59% of consumers prefer to drink tequila as a shot, there is a notable opportunity for growth in cocktail consumption, with only 33% utilizing tequila in cocktails. Additionally, 72% of consumers have ordered a bottle when out, with a third doing so regularly, indicating that celebrations and promotions can drive bottle sales effectively.
Abhi Sehgal, CGA by NIQ’s Client Solutions Manager for EMEA, highlighted the growth potential for tequila in South Africa, noting that consumer interest remains robust. He emphasized the importance of strategic positioning and value offerings to capitalize on this interest going into 2025. Utilizing OPUS, brands can gain insights into consumer behaviors and develop winning strategies for cocktails, bottle services, and super-premium products.
In conclusion, the South African tequila market is burgeoning, particularly among younger, female consumers. The influence of pricing and brand loyalty highlights the importance of value-driven offerings. Furthermore, there is significant potential for growth in the super-premium segment and cocktail consumption. Strategic insights from CGA’s research provide the foundation for opportunities to enhance sales and consumer engagement as the market continues to develop.
Original Source: cgastrategy.com
