Alcoholic Drinks - Africa

The Alcoholic Drinks market in Africa has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the changing customer preferences in Africa. As the middle class continues to expand and disposable incomes rise, there has been an increase in the demand for premium and high-quality alcoholic beverages. Consumers are becoming more sophisticated in their tastes and are willing to spend more on products that offer a unique and enjoyable drinking experience. This has led to a rise in the consumption of craft beers, premium wines, and spirits in the region.

Trends in the market: In addition to changing customer preferences, there are several other trends that are driving the growth of the Alcoholic Drinks market in Africa. One trend is the increasing popularity of local and regional alcoholic beverages. African consumers are increasingly proud of their cultural heritage and are seeking out products that reflect their identity. This has led to a rise in the consumption of traditional African alcoholic beverages, such as palm wine, honey mead, and sorghum beer. Another trend is the growing interest in health and wellness. As consumers become more health-conscious, there has been a shift towards low-alcohol and non-alcoholic beverages. This has created opportunities for companies to innovate and develop new products that cater to this segment of the market. For example, there has been an increase in the production of non-alcoholic beers and wines, as well as the introduction of healthier alternatives to traditional spirits.

Local special circumstances: The Alcoholic Drinks market in Africa is also influenced by local special circumstances. One such circumstance is the prevalence of informal alcohol production and consumption. In many African countries, homemade alcoholic beverages are a common part of social gatherings and celebrations. This informal sector plays a significant role in the market, particularly in rural areas where access to commercial alcoholic beverages may be limited. Another special circumstance is the impact of religious and cultural beliefs on alcohol consumption. In some African countries, alcohol consumption is restricted or prohibited due to religious or cultural reasons. This can create challenges for companies operating in these markets, as they need to navigate these cultural sensitivities and develop products that are acceptable to the local population.

Underlying macroeconomic factors: The growth of the Alcoholic Drinks market in Africa is also influenced by underlying macroeconomic factors. Economic growth and urbanization are key drivers of the market, as they contribute to rising incomes and changing lifestyles. As more people move to cities and adopt a more Westernized lifestyle, the demand for alcoholic beverages increases. Additionally, population growth and demographic changes are important factors to consider. Africa has a young and growing population, which presents a significant consumer base for alcoholic drinks. Furthermore, the increasing urbanization and changing gender roles have led to a rise in the number of women in the workforce, which has contributed to the growth of the market. In conclusion, the Alcoholic Drinks market in Africa is experiencing significant growth due to changing customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As the region continues to develop and consumer tastes evolve, there are opportunities for companies to capitalize on the growing demand for alcoholic beverages in Africa.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
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.