South Africa Tequila Market Overview, 2028

South Africa is vibrant and dynamic, reflecting a growing appreciation for this Mexican spirit. Tequila has evolved beyond being just a drink and has become a part of the social and cultural fabric of the country. South Africans have embraced tequila as a spirit of celebration and enjoyment. It is often associated with festive occasions, parties, and social gatherings. Tequila shots, cocktails, and margaritas are popular choices for those looking to have a good time and savour the flavours of this distinctive spirit. Tequila tastings and educational events are gaining popularity, allowing enthusiasts to learn more about different tequila brands, production methods, and flavour profiles. South Africans are increasingly interested in understanding the nuances of tequila and appreciating its quality and craftsmanship. The cocktail culture in South Africa has also played a significant role in shaping the tequila culture. Mixologists and bartenders have incorporated tequila into creative and innovative cocktail recipes, showcasing its versatility and ability to elevate the drinking experience. Furthermore, the rise of craft and artisanal tequilas has contributed to a growing sense of exploration and experimentation among South African consumers. People are willing to explore different tequila expressions, including aged varieties and limited-edition releases, expanding their knowledge and taste preferences. Tequila-themed events, such as tequila festivals, cocktail competitions, and themed nights at bars and restaurants, have become popular, providing platforms for people to come together, celebrate, and indulge in the tequila culture. According to the research report "South Africa Tequila Market Overview, 2028," published by Bonafide Research, the South African tequila market is expected to grow at a 6.96% CAGR from 2023 to 2028. In South Africa, the type of tequila that is preferred can vary based on individual preferences and trends. Blanco (also known as silver or white) tequila is often a popular choice. Blanco tequila is unaged or minimally aged, offering a crisp and pure agave flavour with a slight peppery kick. Its versatility makes it suitable for sipping, shooting, and mixing into cocktails. Reposado tequila, which is aged in oak barrels for a few months to a year, is also well-regarded in South Africa. The ageing process imparts additional complexity and smoothness to the tequila while retaining its agave character. Value tequilas, which are more affordable and budget-friendly options, appeal to price-conscious consumers looking for a cost-effective choice. These tequilas may be favoured by those who prioritise affordability over premium quality. The demand for premium and high-end premium tequilas is on the rise in South Africa. Consumers are becoming more discerning and willing to explore higher-quality options, appreciating the craftsmanship, flavour complexity, and prestige associated with premium tequilas. Super premium tequilas, which often include aged expressions and limited editions, are also gaining popularity among tequila enthusiasts and connoisseurs who seek unique and exceptional tasting experiences. These tequilas are typically produced from the finest ingredients and aged for longer periods, resulting in more refined and complex flavours. Prominent tequila brands in the South African market include Jose Cuervo, Patron, Don Julio, Sauza, 1800 Tequila, El Jimador, and Olmeca. These brands offer a diverse selection of tequila expressions, ranging from Blanco (unaged) to Reposado (aged) and Aejo (extra-aged) varieties. In South Africa, there are several dedicated liquor stores that offer a wide range of tequila brands and expressions, providing consumers with a convenient location to purchase their preferred products. Some notable liquor stores in South Africa where tequila can be found include Makro Liquor, Tops at Spar, Liquor City, Ultra Liquors, and Norman Goodfellows. Supermarkets and hypermarkets in South Africa play a significant role in the distribution and sale of tequila. One prominent chain is Checkers, which has dedicated liquor shop sections within its stores. These sections offer a wide range of tequila brands to cater to diverse consumer preferences. Another well-known supermarket chain, Pick n Pay, features Pick n Pay Liquor sections that provide customers with a variety of tequila options. Spar, a popular retail chain, also operates Tops sections within its stores, offering a selection of tequila brands. Additionally, Woolworths, known for its premium offerings, operates Woolworths Liquor stores that curate a range of tequila brands, including both popular and premium options. Popular online retailers in South Africa specialising in liquor and offering a wide range of tequila brands include Cybercellar, Yuppiechef, Bottleshop, Norman Goodfellows, Netliquor, TOPS at SPAR Online, Liquor City Online, and Ultra Liquors Online. These platforms provide a convenient way for tequila enthusiasts to purchase their favourite brands online. The tequila market in South Africa faces several challenges that impact its growth and adoption. One significant challenge is the limited awareness and understanding of tequila among consumers. Compared to other alcoholic beverages, tequila is still relatively new to the South African market, and there is a need to educate consumers about its unique characteristics and production process. Additionally, pricing can be a challenge as tequila is often perceived as a premium spirit, which may deter price-sensitive consumers. The limited availability of a wide range of tequila brands and expressions is another obstacle, as consumers may have limited options to explore. Despite the challenges, the tequila market in South Africa is promising. As consumer preferences and tastes continue to evolve, there is a growing interest in exploring new and unique spirits. Tequila, with its rich history and diverse range of flavours, has the potential to capture the attention of South African consumers looking for premium and high-quality options. The increasing popularity of cocktail culture and mixology in South Africa provides an opportunity for tequila to shine. Its versatility in creating a wide range of cocktails appeals to both seasoned mixologists and casual drinkers seeking exciting and innovative drinking experiences. Considered in this report • Geography: South Africa • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028

Aspects covered in this report • South Africa Tequila market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Type • Blanco • Reposado • Anejo • Others

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By Grade • Value • Premium • High - End Premium • Super Premium By Distribution Channel • Off-Trade • On-Trade

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By off-trade Distribution Channel • Supermarkets and Hypermarkets • Discount Stores • Online Stores • Others By On-trade Distribution Channel • Restaurants and Bars • Liquor Stores • Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us. we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Tequila industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.