Market Insights Advertising & Media Media Cinema

Cinema Concessions - South Africa

South Africa

Revenue in the Cinema Concessions market is projected to reach US$79.96m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.74%, resulting in a projected market volume of US$100.80m by 2029.
In the Cinema Concessions market, the number of viewers is expected to amount to 6.2m users by 2029.
User penetration will be 8.8% in 2024 and is expected to hit 9.6% by 2029.
The average revenue per viewer is expected to amount to US$14.91.
In global comparison, most revenue will be generated in the United States (US$9,884.00m in 2024).

Key regions: Germany, Europe, United States, China, United Kingdom

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Analyst Opinion

The Cinema Concessions market in South Africa is experiencing significant growth due to changing customer preferences and local special circumstances.

Customer preferences: Customers in South Africa have shown a growing preference for a more immersive cinema experience, which includes not only watching a movie but also enjoying a variety of food and beverages. This has led to an increased demand for cinema concessions, as customers seek to enhance their movie-watching experience with snacks and drinks. Additionally, there is a growing trend of socializing at cinemas, with customers often visiting with friends and family, further driving the demand for concessions.

Trends in the market: One of the key trends in the Cinema Concessions market in South Africa is the introduction of a wider range of food and beverage options. Cinemas are now offering a variety of snacks, including popcorn, nachos, hot dogs, and candy, as well as a selection of alcoholic and non-alcoholic beverages. This trend is driven by the desire to cater to the diverse tastes and preferences of customers, who are increasingly looking for more choice and variety when it comes to concessions. Another trend in the market is the focus on premium and gourmet offerings. Cinemas are now offering high-quality, gourmet snacks and beverages, such as artisanal popcorn flavors, craft beers, and specialty cocktails. This trend is driven by the growing demand for premium experiences among customers, who are willing to pay a higher price for unique and indulgent concessions.

Local special circumstances: South Africa has a vibrant and diverse culinary scene, with a rich food culture that includes a wide range of flavors and cuisines. This has influenced the Cinema Concessions market in the country, as cinemas strive to offer concessions that reflect the local food culture and cater to the tastes and preferences of the South African population. For example, cinemas may offer traditional South African snacks, such as biltong (dried cured meat) or boerewors (sausage), alongside more traditional cinema snacks.

Underlying macroeconomic factors: The growth of the Cinema Concessions market in South Africa can also be attributed to underlying macroeconomic factors. The country has seen steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. As a result, more people have the financial means to enjoy leisure activities such as going to the cinema and purchasing concessions. Additionally, the growing urbanization and development of shopping malls and entertainment complexes in South Africa have provided more opportunities for cinemas to expand and attract customers.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Cinema market, which comprises revenues from box office, advertsing and concessions. The market includes both consumer and advertising spending. All monetary figures refer to consumer spending on tickets and concessions. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.