New data reveals strong growth in liquor retail formats — and evolving shopper behaviours

Trade Intelligence’s newly released Liquor Retailing Report shows that South Africa’s off-trade liquor market — which includes formal retail channels such as grocery liquor stores, liquor wholesalers and hypers — exceeded R100bn in sales in 2024. The data reflects continued investment in liquor retail from South Africa’s major grocery groups, and a liquor shopper that remains highly engaged, but increasingly diverse in mission and channel use.

Retailers accelerate liquor expansion

Across South Africa’s listed corporate grocery retailers — Shoprite Group, Pick n Pay, Boxer and SPAR — standalone liquor store footprint has grown by +31% over the past five years, nearly double the rate of grocery store expansion. 
 
The Shoprite Group has now overtaken TOPS at SPAR in total liquor store footprint, operating 925 outlets across its LiquorShop and OK Liquor banners, compared to TOPS at SPAR’s 914.
 

Format performance highlights evolving roles

Taking a quick look at the definitions, off-trade refers to physical or online stores selling liquor for later consumption off the premises, while on-trade refers to outlets like bars, restaurants, pubs and taverns, where liquor is consumed on-site.

While grocery liquor continues to expand, even five years after the pandemic, on-trade turnover still remains below pre-COVID levels, reaching R47bn in 2024, compared to R59bn in 2019. Tavern sales have shown growth, but bars and restaurants continue to recover more slowly.

Within the off-trade channel, grocery liquor sub-channel growth outpaced that of liquor hypers and wholesalers, with distinct performance and shopper dynamics across each format.

“Liquor is still predominantly bought in-store, but it’s a mission-driven category,” says Nicola Allen, Senior Retail Analyst at Trade Intelligence and lead analyst of the report. “Shoppers could be doing anything from stocking up for an event, to grabbing a bottle for later, to looking for the best possible price — and this drives their behaviour and their channel priorities, such as price sensitivity.”

The report identifies several high-frequency missions that define liquor shopping today. Each is closely linked to format and banner choice, depending on the occasion, urgency and value perception.

Shopper behaviour remains in-store, but new patterns are emerging

Liquor remains a highly physical category, with over 90% of shoppers across spirits, wine, beer and cider/RTD still buying in physical stores. This confirms that liquor continues to play out on the shelf, even as digital engagement grows.

At the same time, 46% of 18- to 24-year-old cider/RTD shoppers report regularly buying via delivery apps, and are more likely to engage across multiple platforms before purchase.

Shopper missions such as stocking up for an occasion, grabbing something for later, and hunting down a special remain common across categories, and frequently influence format and channel selection.

Strategic implications for a changing liquor channel

Understanding the liquor channel means understanding its nuances. The sub-channels within off-trade liquor — from grocery liquor to liquor hypers and wholesalers — play distinct roles in meeting different shopper needs and missions. In the on-trade environment, post-pandemic recovery across sub-channels has been uneven. As shopper behaviour diversifies, format roles evolve, and store expansion accelerates, the need for channel precision becomes more urgent. 

The market has shifted — has your channel strategy? 

In a landscape where format roles are fluid and missions vary by occasion and urgency, channel clarity is essential for smarter growth. Read this article, where we explore the necessity for channel precision as a commercial imperative for FMCG players.