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BMi Research sorghum beer report in South Africa

Recent findings released by BMi Research reveal that the sorghum beer market in South Africa has been steadily declining over the past three years. This trend comes both from decline of stock as well as declined consumption from the market, as more and more consumers are turning their attention to the likes of malt beer and craft beer.
BMi Research sorghum beer report in South Africa

Sorghum beer is split between dry-based products, which is most commonly purchased to make home-brewed product. This larger, bulk option is especially popular in rural areas, but this has not maintained the market's growth. Wet-based sorghum beer however has maintained a growth this year, though off of a smaller base.

The selling of sorghum beer is still done primarily through the wholesale industry, in the form of bulk bags of raw, dry product. As the dry-based sorghum beer market declines, the influence of ready-made products sold through the top-end retail sector is becoming prevalent.

The less urbanised regions such as Limpopo, Mpumalanga and North West, as well as KwaZulu-Natal, dominate the industry. The industry declines have caused all provinces to show declines in volumes, however the outlying regions of South Africa still maintain a strong hold on the market, as well as the export of products to other African countries.

"Carton is a growing form of packaging for the wet-based sorghum beer industry. It is gas impermeable so that the product can breathe when packed. With bulk raw products declining, the usage of paper in the industry has declined. This is a trend expected to continue as the dry-based sorghum beer industry continues to lose volume over the coming years," says BMi Research CEO, Gareth Pearson.

The market is expected to decline further in the near future as the industry loses volume and share to other alcoholic beverages.

Smaller, less urbanised areas of the country are the main drivers of the sorghum beer market. The influence of KwaZulu-Natal on the market is larger due to its larger informal market as well as the raw products grown there.

Click here to read the 2015 Category Quantification Report: Sorghum Beer in South Africa.

11 Dec 2015 12:03

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