CGA’s On Premise User Survey indicates that tequila is the fourth-largest spirits category in South Africa, predominantly favored by consumers aged 18-34, with female drinkers making up a significant majority. Price and brand image are critical factors for consumers, with opportunities in the super-premium segment and for enhancing cocktail offerings. The outlook for growth in the tequila market appears strong as suppliers adapt to consumer trends.
CGA’s exclusive On Premise User Survey reveals critical insights into South African consumer preferences for tequila in dining settings. Approximately 26% of individuals indulge in tequila when visiting pubs, bars, and restaurants, positioning it as the fourth-largest spirits category, following gin, vodka, and whiskey. This market primarily attracts a young demographic, with 73% of drinkers aged between 18 to 34 years, and a noteworthy 67% identifying as female. The most consumed variety is white silver tequila.
Price sensitivity significantly influences the market, with 34% of tequila drinkers highlighting good value as a key selection criterion, surpassing the quality of the spirit. Brand image also plays a crucial role, as 60% of consumers request specific tequila brands when ordering. Moreover, opportunities abound for suppliers and venues within the super-premium segment, which 41% of consumers engage with, spending an average of R1,292 monthly in such settings, reflecting a 13% increase compared to the average tequila drinker.
Promotional targeting for super-premium tequila can be particularly effective as its consumers exhibit distinct patterns; they are 16 percentage points more likely to be aged 18 to 34 and 15 percentage points more likely to be female. On average, super-premium consumers maintain a repertoire of 4.1 brands compared to 2.8 brands among the broader tequila-drinking population.
In terms of consumption patterns, opportunities exist for growth within cocktails and bottle service. Currently, 59% of consumers prefer to enjoy tequila as a shot, whereas only 33% utilize it in cocktails, indicating potential for expansion. Additionally, 72% of patrons have ordered bottles when out, with one-third doing so regularly, highlighting celebrations and promotions as effective means to stimulate bottle sales.
Abhi Sehgal, the client solutions manager EMEA at CGA by NIQ, stated, “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.” He emphasized the necessity of adapting offerings and leveraging interests in cocktails, bottle services, and the super-premium category.
The OPUS platform serves as a vital tool for understanding consumer behavior within the On Premise sector, offering both core outputs and custom projects. For further insights into CGA’s consumer research in South Africa, additional information can be found on their website, or one can directly contact Abhi Sehgal for inquiries.
In summary, the tequila market in South Africa presents substantial opportunities, especially among young, female consumers who emphasize value and brand reputation. With a notable portion engaging with super-premium brands and a clear potential for cocktail consumption, the landscape is ripe for innovative marketing strategies. The insights provided by CGA signify an optimistic outlook for growth in the coming years, contingent on effective consumer engagement and promotional tactics.
Original Source: cgastrategy.com
