Over the next few years an increasing number of specialist bars are expected to emerge in upmarket urban areas, with this trend being driven by rising demand for local craft beers and spirits, which are being positioned as lifestyle products for aspirational consumers looking for authenticity. South Africa has already witnessed the success of specialist gin and rum bars such as Botany Gin and Rum Tum Tum, which appeal to both locals and tourists.
As the debate on alcohol abuse continues in South Africa, anti-alcohol lobbies are continuing to demand more restrictive regulations, while the government is seeking to reduce alcohol consumption among young people. In 2018, a Liquor Amendment Bill was proposed, raising the legal drinking age from 18 to 21 and banning alcohol advertisements between 06.
An emerging coffee culture in South Africa will continue to support the growth of specialist coffee and tea shops over the forecast period. This trend has already been noticeable in metropolitan areas and small cities, where a new landscape has been emerging, reflecting consumers’ changing habits.
As economic constraints hit South Africa, Mugg & Bean has benefited from its more generous approach, for example offering large food portions, all day breakfasts, bottomless cups of coffee, tea and hot chocolate as well as a number of fizzy drinks, with this helping to boost demand among price-sensitive consumers. In addition, the offer of free Wi-Fi has served to attract freelancers, job seekers and the working class.
Introduced to South Africa in 2016, Starbucks has quickly expanded over the last few years. The brand’s performance has often been associated with its global image, with Starbucks becoming synonymous with the aspirational lifestyles of South African millennials.
Beerhouse was the first to open a specialist craft beer bar in 2013. Today, emerging micro-breweries have been using such outlets as the platform of choice to create awareness of their products.
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Discover the latest market trends and uncover sources of future market growth for the Cafés/Bars industry in South Africa with research from Euromonitor's team of in-country analysts.
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This industry report originates from Passport, our Consumer Foodservice market research database.