Understanding Tequila Trends in South Africa’s On Premise Market

CGA’s survey reveals that 26% of South Africans drink tequila, which ranks fourth among spirits. The market is largely young and female, with price and brand image influencing consumer choices. Opportunities are notable in the super-premium segment and for cocktail and bottle sales. Insights indicate strategic positioning is essential for maximizing sales in 2025.

CGA’s exclusive On Premise User Survey provides valuable insights into consumer behavior regarding tequila consumption in South Africa’s pubs, bars, and restaurants. With 26% of consumers choosing tequila when dining out, it is currently the fourth largest spirits category, following gin, vodka, and whiskey.

The tequila market is predominately young and female, with 73% of drinkers between the ages of 18 and 34, and 67% identifying as female. White silver tequila emerges as the preferred choice among these consumers. Price significantly influences sales; 34% of tequila drinkers prioritize good value over spirit quality, while 60% request specific brands.

There exists a robust opportunity in the super-premium tequila segment, with 41% of consumers opting for these brands when out. This demographic exhibits a higher spending average of R1,292 per month, which is 13% more than average tequila drinkers. Notably, super-premium consumers are 16% more likely to be aged 18 to 34 and 15% more likely to be female than their peers. They also show a greater openness to exploring different brands, averaging 4.1 brands in their repertoire compared to 2.8 brands among all tequila consumers.

While tequila is predominantly consumed as a shot (59%), there is potential for growth in cocktail consumption (only 33%) and bottle sales, with 72% of consumers having previously ordered a bottle. Celebratory events and promotions represent effective incentives for increasing bottle sales.

According to Abhi Sehgal, CGA by NIQ’s client solutions manager for EMEA, tequila is achieving strong growth in various markets, particularly in South Africa. Given that consumers are budget-conscious, the focus should be on strategic positioning and value to maximize sales through diverse offerings.

CGA’s OPUS platform offers core insights and custom projects for understanding consumer behavior within the On Premise sector. For additional details on CGA’s research in South Africa, parties are encouraged to download the provided information or contact Abhi Sehgal directly.

The CGA On Premise User Survey reveals the burgeoning demand for tequila in South Africa, particularly among young, female consumers. Key takeaways include the importance of pricing, brand selection, and significant opportunities within the super-premium segment. Additionally, there is potential for increasing cocktail and bottle sales. By aligning offerings with consumer preferences, restaurants and bars can enhance sales in this competitive market.

Original Source: cgastrategy.com

About Liam O'Sullivan

Liam O'Sullivan is an experienced journalist with a strong background in political reporting. Born and raised in Dublin, Ireland, he moved to the United States to pursue a career in journalism after completing his Master’s degree at Columbia University. Liam has covered numerous significant events, such as elections and legislative transformations, for various prestigious publications. His commitment to integrity and fact-based reporting has earned him respect among peers and readers alike.

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