A new study found that nearly 49% of South Africans visit bars, restaurants, and other venues weekly, with an impressive 87% visiting at least once a month, showing strong social engagement.
Despite ongoing economic challenges, including a cost-of-living crisis, South Africans continue to prioritise dining and drinking out, with half of the population visiting on-premise venues weekly, according to a new study.
In the new study, On Premise User Study (OPUS) by CGA by NIQ found that nearly 49% of South Africans visit bars, restaurants, and other venues weekly, with an impressive 87% visiting at least once a month, showing strong social engagement.
“This frequency of visits underlines the enduring importance of out-of-home experiences in South African culture, where dining and drinking are central to leisure and social life,” it said.
Cocktails are a hit, with 60% of drinkers choosing them every visit, driven by younger consumers and women.
Premium drinks are in demand, as 61% of consumers are willing to pay extra for higher quality beverages
CGA by NIQ Client Solutions Manager for EMEA Abhi Sehgal explains, "Despite rising costs, South Africans' weekly visits to bars and restaurants highlight the nation’s strong appetite for social experiences. This suggests a resilient market, particularly among younger, affluent consumers who are willing to pay more for premium offerings.”
The study found that this presents substantial opportunities for beverage brands and hospitality venues to align their offerings with key market trends and consumer preferences. Understanding these behaviours and tailoring products accordingly can provide significant competitive advantages.
Spirits and cocktails emerge as leading choices for on-premise consumers, with 27% of visitors consuming spirits and 38% opting for cocktails. The rising popularity of cocktails is noteworthy, as 60% of cocktail drinkers enjoy them every time they visit a venue.
“This trend is especially pronounced among younger consumers and women, who are key drivers of demand in this category. With cocktail consumption on the rise, there is a significant opportunity for brands to innovate and cater to this growing market segment,” the study said.
Opportunities for growth
The research identified several areas of opportunity for businesses looking to succeed in South Africa’s on-premise market:
Millennials with money: Younger visitors, typically more affluent with higher disposable income, represent a key demographic for premium brands. By offering high quality products and experiences, venues can attract and retain these valuable consumers, driving higher sales and loyalty.
Capitalising on cocktails: With a large proportion of consumers choosing cocktails during their visits, there is a clear opportunity for spirit brands to innovate within this category. Popular cocktails include rum-based drinks like Mojitos, but there is also growing demand for non-traditional offerings, signalling room for creativity and new product development.
A premium state of mind: Despite economic pressures, South Africans are willing to pay more for premium experiences. In fact, 61% of consumers stated they are willing to pay extra for a higher quality drink.
Bottles are best: Bottle service remains an attractive option for social groups, with 40% of spirits and wine consumers opting for bottle orders in venues. This trend is particularly popular among younger consumers, with gin and whisky being the most common choices for bottle service.
Leveraging special occasions: Special occasions, including birthdays and anniversaries, are major drivers of on-premise visits, particularly among younger consumers. After work drinks, high-tempo nights, and live sports events present lucrative opportunities for targeting spirits drinkers who enjoy socialising during these occasions.
Global rinks giant Anheuser-Busch, with a large footprint in South Africa, is steadfastly growing its Beyond Beer portfolio, including products like ready-to-drink beverages like Canned Wine and Canned Cocktails, Hard Seltzers, Cider and Flavored Malt Beverages. The Beyond Beer trend has been gaining popularity due to the rise in demand for low-alcoholic or non-alcoholic drinks.
The company remains focused on expanding its Beyond Beer portfolio, which has also been aiding the top line. The Beyond Beer portfolio contributed $375 million (R6.6 billion) to the total revenues in second-quarter 2024.
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