Alcoholic Drinks - Kenya

The Alcoholic Drinks market in Kenya has been experiencing steady growth in recent years. Customer preferences have shifted towards premium and craft beverages, while trends in the market include the rise of local breweries and the increasing popularity of wine. Local special circumstances, such as the growing middle class and changing cultural attitudes towards alcohol, have contributed to this development. Additionally, underlying macroeconomic factors, such as urbanization and increased disposable income, have played a role in driving the growth of the Alcoholic Drinks market in Kenya. Customer preferences in the Alcoholic Drinks market in Kenya have been shifting towards premium and craft beverages. Consumers are increasingly seeking higher quality products and are willing to pay a premium for them. This trend is driven by a growing middle class with higher disposable incomes and a desire for more sophisticated and unique drinking experiences. As a result, there has been an increase in the demand for premium spirits, craft beers, and artisanal wines. One of the key trends in the Alcoholic Drinks market in Kenya is the rise of local breweries. With the growing popularity of craft beers, local breweries have emerged to cater to the demand for unique and flavorful brews. These breweries often use locally sourced ingredients and traditional brewing techniques, creating a sense of authenticity and promoting local entrepreneurship. This trend not only satisfies the preferences of consumers for craft beverages but also contributes to the growth of the local economy. Another trend in the market is the increasing popularity of wine. Traditionally, beer and spirits have been the preferred alcoholic beverages in Kenya. However, there has been a gradual shift towards wine consumption, particularly among urban consumers. This can be attributed to changing cultural attitudes towards alcohol, as well as increased exposure to international influences. Wine is seen as a more sophisticated and cosmopolitan choice, and its consumption is often associated with social status and elegance. Local special circumstances have also played a role in the development of the Alcoholic Drinks market in Kenya. The growing middle class, with its increased purchasing power, has created a larger consumer base for premium and craft beverages. Additionally, changing cultural attitudes towards alcohol, influenced by globalization and urbanization, have contributed to the shift in customer preferences. As Kenya becomes more urbanized, there is a greater exposure to international trends and a desire for more diverse drinking options. Underlying macroeconomic factors have also contributed to the growth of the Alcoholic Drinks market in Kenya. Urbanization has led to an increase in the number of bars, restaurants, and entertainment venues, providing more opportunities for consumers to explore different alcoholic beverages. Furthermore, rising disposable incomes have allowed consumers to spend more on leisure activities, including dining out and socializing, which often involves the consumption of alcoholic drinks. In conclusion, the Alcoholic Drinks market in Kenya is experiencing growth due to shifting customer preferences towards premium and craft beverages, the rise of local breweries, the increasing popularity of wine, local special circumstances such as a growing middle class and changing cultural attitudes, and underlying macroeconomic factors such as urbanization and increased disposable income. These factors have created a favorable environment for the development of the Alcoholic Drinks market in Kenya and are likely to continue driving its growth in the future.

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.