Consumers have become more selective in their alcohol spending, balancing affordability with occasional premium purchases and exploring alternatives to traditional beer, the latest results from South African Breweries (SAB) show.
The data serves to confirm how sustained pressure on household finances has reshaped consumer behaviour, forcing alcohol producers to rely on a careful mix of affordability, premiumisation and innovation to drive growth.
The brewer on Tuesday reported mid-single digit revenue growth for the first quarter of its 2026 financial year, with volumes also rising by low-single digits. However, beer volumes lagged, though the group’s Beyond Beer portfolio outperformed.
SAB said earnings before interest, tax, depreciation and amortisation for the three months to end-March fell by low-single digits as higher sales and marketing spend offset revenue gains.
SAB’s results are contained in parent company AB InBev’s quarterly earnings statement, which does not break down the numbers by region in detail.
According to CEO Richard Rivett-Carnac, performance was underpinned by continued execution and brand strength.
“The momentum of our business continued, with the consistent execution of our strategy, driving an increase in our portfolio brand power and record first-quarter volumes,” he said.
Growth was led by premium and superpremium brands, which recorded volume growth in the mid-twenties, driven by Corona, Rivette-Carnac said. Mainstream beer delivered low single-digit revenue growth, supported by Carling Black Label.
Beyond Beer was a key area of strength, with volumes growing by high-single digits, led by Flying Fish and spirits-based ready-to-drink products.
The overall performance points to a consumer who has not exited the market but is becoming more deliberate — maintaining core purchases while selectively trading up and experimenting in adjacent categories.
This aligns with broader industry trends. As previously reported by Business Day, a growing share of South Africans are reducing alcohol consumption, with 30% saying they plan to cut back — almost double the global average of 17%, according to consumer data company Worldpanel by Numerator.
Youth-driven change
Younger consumers are driving the change, the report states, with about one in five people under the age of 35 saying they intend to drink less.
The shift is linked to broader lifestyle changes, including rising health awareness and a stronger focus on well-being. Worldpanel data shows that 38% of South Africans report struggling mentally or physically, while most households are adjusting behaviour — 77% of respondents said they are prioritising fresh foods and 68% are avoiding “bad habits”.
Worldpanel by Numerator South Africa country manager Nick Barrett said the change is structural rather than temporary.
“This is not a short-term dip; it’s a long-term shift. South Africans are becoming more intentional about when and why they drink, which is opening up space for low- and no-alcohol options, functional drinks and premium hydration,” he said.
SAB’s results reflect this transition. While premium brands continue to gain traction, indicating demand for higher-quality products, the steady performance of mainstream beer suggests that affordability remains a top consideration for many consumers.
The strong growth in Beyond Beer shows changing preferences, particularly among younger consumers seeking variety and alternatives to traditional alcohol.
Researchers note that the nonalcoholic beverage market in South Africa is set to expand steadily, driven largely by younger, more health-conscious consumers.
The sector remains a major contributor to the economy. According to the Drinks Federation South Africa, the alcohol industry contributes R226.3bn to GDP, supports nearly 499,000 jobs, and generates R96.9bn in tax revenue.
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