CGA’s On Premise User Survey reveals key insights about tequila consumption in South Africa, indicating it ranks as the fourth-largest spirits category. Target demographics are primarily young women, with a notable focus on value and brand preference driving sales. The super-premium segment is particularly promising, and there remains potential for growth in cocktails and bottle serves.
CGA’s exclusive On Premise User Survey provides valuable insights into South African tequila preferences in pubs, bars, and restaurants, highlighting the market’s growing potential. Approximately 26% of consumers partake in tequila while dining out, positioning it as the fourth-largest spirits category, trailing gin, vodka, and whiskey.
The tequila market attracts a young, predominantly female demographic, with 73% of drinkers aged between 18 and 34, and 67% identifying as female. The most favored type is white silver tequila. Pricing significantly influences consumer decisions, as 34% of tequila drinkers prioritize good value for money above the spirit’s quality. A notable 60% also request specific tequila brands when ordering.
Opportunities abound in the super-premium sector, which attracts 41% of tequila consumers. This group spends, on average, R1,292 monthly at On Premise venues—13% higher than the overall tequila drinker. Targeting promotions to this demographic is beneficial, as they are 16 percentage points more likely to be aged 18 to 34 and 15 percentage points more likely to be female than average tequila drinkers. Their inclination to explore brands is reflected in their average of 4.1 types in their repertoire, compared to 2.8 for all tequila consumers.
Currently, tequila is predominantly consumed as a shot by 59% of drinkers, whereas only 33% enjoy it in cocktails, indicating significant growth potential in this category. About 72% of consumers have ordered a bottle when out, with one-third doing so regularly, suggesting that celebrations and promotions could substantially enhance bottle sales.
Abhi Sehgal, CGA by NIQ’s client solutions manager EMEA, noted, “We’re seeing tequila delivering good rates of growth in many territories, and consumer interest is particularly strong in South Africa. On Premise guests are watching their spending carefully, but with the right positioning and value, there will be great opportunities to unlock more sales as we move deeper into 2025. Flexing the offer and capitalizing on interest in cocktails, bottle serves, and the super-premium category will be key.”
CGA’s OPUS platform offers access to comprehensive consumer research and insights in the On Premise sector. For further information regarding CGA’s research in South Africa, one can download relevant materials or contact Abhi Sehgal directly.
In conclusion, the tequila market demonstrates significant growth potential in South Africa’s On Premise sector. The young, female-led demographic shows a marked preference for super-premium tequila, influenced heavily by pricing and brand preference. There are ample opportunities to enhance sales through cocktail offerings and bottle service. Strategic targeting and positioning will be crucial to capitalize on this expanding market.
Original Source: cgastrategy.com
