Executive Summary

Feb 2019
PROSPECTS
Premiumisation trend gains traction

South Africa has a well-established wine culture among its locals. The country hosts many wine festivals, which attract local and international attention.

Promotion of premium/luxury brands to nouveau riche black consumers

The growing affluent black consumer group is also demanding more discretionary products such as fine wines/champagne and spirits. Fine wines and champagne are, additionally, a status symbol for nouveau riche black consumers, who can often be seen ordering expensive drinks in upmarket clubs and posting pictures on their social media pages.

Increasingly targeted marketing strategies

To drive sales, a more targeted marketing approach is being used to promote new luxury brands to aspirational and wealthy consumers. In terms of channels, upmarket hotels, clubs, restaurants and specialised retailers tend to be the main distributors of luxury drinks.

COMPETITIVE LANDSCAPE
Category remains highly fragmented

The competitive environment in fine wines/champagne remains highly fragmented. Only a small number of mainly international players hold more than negligible value shares.

Players increasingly cater to specific consumer preferences

Wealthy consumers seek unique, rare and vintage-quality fine wines/champagne and spirits which are not only difficult to source, but come with a high price tag. Frequently, these unique products become collector’s items, rather than opened and consumed immediately.

Popular brands widen their availability by crossing categories

The wide range of prices in fine wines/champagne and spirits ensures there is a wide variety of products available. These range from affordable, aspirational and absolute luxury products.

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Fine Wines/Champagne and Spirits in South Africa

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Overview

Discover the latest market trends and uncover sources of future market growth for the Fine Wines/Champagne and Spirits industry in South Africa with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Fine Wines/Champagne and Spirits industry in South Africa, our research will save you time and money while empowering you to make informed, profitable decisions.

The Fine Wines/Champagne and Spirits in South Africa market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Fine Wines/Champagne and Spirits in South Africa?
  • What are the major brands in South Africa?
  • How dynamic is the growth of Fine Wines/Champagne and Spirits internet sales?
  • What is driving growth?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply function

Fine Wines/Champagne and Spirits in South Africa - Category analysis

HEADLINES

PROSPECTS

Premiumisation trend gains traction
Promotion of premium/luxury brands to nouveau riche black consumers
Increasingly targeted marketing strategies

COMPETITIVE LANDSCAPE

Category remains highly fragmented
Players increasingly cater to specific consumer preferences
Popular brands widen their availability by crossing categories

CATEGORY DATA

Table 1 Sales of Fine Wines/Champagne and Spirits by Category: Value 2013-2018
Table 2 Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2013-2018
Table 3 NBO Company Shares of Fine Wines/Champagne and Spirits: % Value 2013-2017
Table 4 LBN Brand Shares of Fine Wines/Champagne and Spirits: % Value 2014-2017
Table 5 Distribution of Fine Wines/Champagne and Spirits by Format: % Value 2013-2018
Table 6 Forecast Sales of Fine Wines/Champagne and Spirits by Category: Value 2018-2023
Table 7 Forecast Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2018-2023

Luxury Goods in South Africa - Industry Overview

EXECUTIVE SUMMARY

Changing market due to macroeconomic conditions and evolving consumer base
Market experiences growth but ongoing decline in dynamism
Luxury goods market remains small in South Africa, with scope for further growth
Multibrand stores remain the main distribution channel
Positive prospects for changing luxury goods market

MARKET INDICATORS

Table 8 Number of High Net Worth Individuals (HNWI): 2013-2018

MARKET DATA

Table 9 Sales of Luxury Goods by Category: Value 2013-2018
Table 10 Sales of Luxury Goods by Category: % Value Growth 2013-2018
Table 11 Inbound Receipts for Luxury Goods by Country of Origin: Value 2013-2018
Table 12 NBO Company Shares of Luxury Goods: % Value 2013-2017
Table 13 LBN Brand Shares of Luxury Goods: % Value 2014-2017
Table 14 Distribution of Luxury Goods by Format and Category: % Value 2018
Table 15 Forecast Sales of Luxury Goods by Category: Value 2018-2023
Table 16 Forecast Sales of Luxury Goods by Category: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources