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Top trending and demands of online Liquor business in South Africa

  • 24 Feb, 2024

The past few years have been quite challenging for the entire world, including South Africa especially due to the Covid-19 pandemic, lockdowns and increased cost of living. After a long gap, with the Covid-19 restrictions being relaxed in most places, people have adapted to the new normal and have resumed working from the office, meeting friends and family, as well as hosting functions and parties. Here’s what we at The Grand Store have observed about the impact of this changed scenario on South Africa and its online liquor business:

 

Affordability

A recent study by IWSR, a leading data source for over 5 decades that monitors global alcohol trends has stated that over 50% of consumers in South African markets are willing to wait to avail discounts before buying their favourite brand of alcohol. It shows that South Africans have been noticeably hit by increasing petrol prices, soaring rates of essential commodities and an overall increase in the cost of living. This has brought down their disposable income, so they are looking at more ways to cut down their costs wherever possible. This has brought about more bulk purchase behaviour. For example, Castle Double Malt Beer Cans, Stella Artois Beer Cans.

 

More bang for the buck

While South Africans are being more careful at how they are spending money, they have also become savvier and are looking at more value for their money. There is more emphasis on buying well-known trusted brands that can deliver value beyond the selling price as well as ensure quality. This value relates to the overall brand experience, the brand equity, product size and ingredients, ABV etc. For example, The Famous Grouse Scotch Whisky, Darling Cellars Sauvignon Blanc.

 

Occasional indulgences

With economic recession looming large, people like to indulge in small luxuries at times that not only give them a sense of indulgence and uplift their mood but also does not break the bank. This behaviour known generally as the ‘lipstick effect’ is being seen in South African consumers. While people are trying to buy their regular drinks at discounted prices, they are also indulging in buying premium alcohol occasionally. This is quite evident during the holiday season or on occasions like Valentine’s Day. For example, Meukow XO Grande Champagne Cognac, Boschendal Jean Le Long Prestige Cuvee

 

The proliferation of niche products

South African markets have seen a shift in the way people enjoy their drinks. There has been an increase in small and independent niche breweries producing artisanal alcohol beverages, particularly in the microbrewery and craft gin sectors. This trend is on the rise as consumers are seeking high-quality products, as well as personalised and unique experiences. There are various craft beer festivals held across the country. Also, while beer remains the most popular alcoholic beverage in South Africa, we have observed that consumers are ready to try out more varieties of liquor such as wines, gins, vodka, tequila etc. For example, Six Dogs Handcrafted Karoo Gin, Clase Azul Handcrafted Reposado Tequila.

 

Health-conscious

People are taking their health and well-being issues quite seriously and are making more positive lifestyle choices after the Covid-19 pandemic. They are being more aware of what they eat or drink with the realisation that moderation is an important aspect of good health. Many people have switched to alcohol-free beers or low-alcohol beverages or are having alcohol in limited quantities. Consumer preferences are growing towards low-alcohol beers due to which even well-established brands are making changes in their products. For example, the low-alcohol Flying Fish Seltzer beer launched by South African Breweries (SAB). Flying Fish Seltzer beer is said to contain 35 calories per 100 ml and is formulated with 5.5% ABV. Their two popular flavours are apple (Flying Fish Saltzer Apple) and raspberry (Flying Fish Salzter Raspberry) which come in a premium 300 ml slim can.

 

Online shopping

When the lockdowns were in place, more and more consumers started to shop beers online in South Africa through different shopping websites. Now that they have discovered the ease and convenience of buying their favourite alcohol brands online, consumers not only buy beer online but also review and buy other alcohol varieties from the wide range available to them. The online selling of alcoholic beverages in South Africa is predicted to be around US$98.4 million in 2023 which accounts for 56.2% share of the total beverages e-commerce category in South Africa. This is expected to grow at a compound annual growth rate of 1.2% for the next 4 years (CAGR 2023-2027), to result in a projected market volume of US$103.4 million by 2027 according to ecommerceDB reports.

 

Visit www.grandstore.co.za to shop online at our well-stocked store and see for yourself how quick and hassle-free it is to order your favourite drink and get it delivered right to your doorstep along with a great customer service.