Trendy South African’s Bet On Gin’s Market Revival
By CultureBanx Team
Gin consumption in South Africa grew by 50% in 2018
The global spirits market is valued at $1T
Gin is the new party princess in South Africa where consumption grew by 50% last year. This low-calorie drink is claiming a larger share of the spirits market which is valued at nearly $1 trillion.
Why This Matters: There are more than 65 registered gin distilleries in South Africa and approximately 30 of them are in the Western Cape. Gin grew 8% from 2017 to 2018, driven by the growing popularity of pink gin, the cocktail scene and the premiumization of the market, according to the International Wine and Spirits Research group.
Gin sales in some grocery chains are growing by 40% a year in the region. The cheapest bottle of artisanal gin averaging around 350 rand ($28) saw an annual consumption last year of around 15.2 million liters.
The other popular spirit in the country Whiskey was on the rise in 2018 and had become the most consumed liquor in South Africa, with 4.1 million people drinking it. As the economy started to turn around so did sales of the liquor, which accounts for a third of the South African spirits market. Despite a tough economic climate, South Africa rose to fifth in the world in 2015 as the largest export market for whiskey by volume.
Situational Awareness: Over the next five years, growth is predicted to be particularly strong for gin in the U.K., Philippines, South Africa, Brazil and Uganda. Some of the losers last year included vodka, beer and wine, all of which experienced global declines of around 2%.
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