Market Insights Consumer Alcoholic Drinks

Spirits - Ethiopia

Ethiopia

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Spirits market amounts to US$71.6m in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$1,677.0k in 2024.
Revenue, combined amounts to US$73.2m in 2024.
The revenue, at home is expected to grow annually by 18.28% (CAGR 2024-2028).
In global comparison, most revenue, at home is generated in China (US$150,400m in 2024).
In relation to total population figures, the average revenue per capita, at home of US$0.55 are generated in 2024.
In the Spirits market, volume, at home is expected to amount to 5,107.0k L by 2024.
Volume, out-of-home is expected to amount to 65.9k L in 2024.
Volume, combined is expected to amount to 5,173.0k L in 2024.
The Spirits market is expected to show a volume growth, at home of 3.8% in 2025.
The average volume per person, at home in the Spirits market is expected to amount to 0.04L in 2024.

Key regions: Australia, Singapore, India, Worldwide, United States

Definition:

The Spirits market includes alcoholic beverages that have been produced through the distillation of wine, fermented fruits, or grains. Due to the distillation process, the alcohol content of spirits is much higher than that of most wines and beers, typically ranging from 20% to 50% alcohol by volume (ABV).

Structure:

The Spirits market is divided into 8 markets:

The Whisky market encompasses spirits on a grain basis that have been aged in wooden casks for a duration of at least three years.
The Vodka market encompasses spirits based on grain and/or potatoes.
The Rum market encompasses spirits based on sugar cane.
The Gin market encompasses spirits based on juniper berries.
The Brandy market encompasses spirits based on fermented fruit juice.
The Tequila market encompasses spirits made primarily from the blue agave plant (Agave tequilana) in Mexico.
The Soju market encompasses the Korean distilled beverage, Soju, which is traditionally made from rice, barley, or sweet potatoes.
The Liqueurs & Other Spirits market encompasses all other spirits not previously mentioned as well as Ready-to-Drink (RTD) cocktails.

Additional information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per liter, as well as sales channels. Per capita figures refer to a country’s or region’s whole population.

At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. All prices are valued at retail selling prices, including all sales and consumption taxes.

Key players include Diageo (e.g., Johnnie Walker, Smirnoff, and Tanqueray), Pernod Ricard, and Kweichow Moutai.

Market

Region

Region comparison

Currency

Analyst Opinion

The Spirits market in Ethiopia has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Ethiopian consumers have shown a growing preference for Spirits, particularly in urban areas. This can be attributed to several factors, including increasing disposable income, urbanization, and changing lifestyles. As people become more affluent, they are willing to spend more on premium Spirits brands and products. Additionally, the younger generation is more open to trying new and innovative Spirits flavors and varieties, leading to a wider range of options in the market.

Trends in the market: One of the key trends in the Spirits market in Ethiopia is the rising demand for locally produced Spirits. Consumers are increasingly seeking out Spirits that are made using traditional Ethiopian ingredients and production methods. This trend is driven by a desire to support local businesses and preserve cultural heritage. As a result, there has been a surge in the number of craft Spirits producers in the country, offering unique and artisanal Spirits options. Another trend in the market is the growing popularity of Spirits as a social drink. Ethiopians have a strong culture of socializing and celebrating, and Spirits are often consumed during social gatherings and special occasions. This has led to an increase in the consumption of Spirits in bars, restaurants, and hotels, as well as a rise in the number of establishments offering a wide selection of Spirits brands and cocktails.

Local special circumstances: Ethiopia has a rich history and culture of brewing and distilling traditional alcoholic beverages. This has created a strong foundation for the development of the Spirits market in the country. The local production of Spirits is supported by the availability of raw materials, such as grains and fruits, which are used in the production process. Additionally, the government has implemented policies and regulations to promote the growth of the Spirits industry, including the establishment of licensing requirements and quality standards.

Underlying macroeconomic factors: The growth of the Spirits market in Ethiopia is also influenced by macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending power. This has allowed more people to afford Spirits and contributed to the overall growth of the market. Additionally, urbanization and the expansion of the middle class have resulted in a larger consumer base for Spirits products. In conclusion, the Spirits market in Ethiopia is experiencing growth due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The demand for locally produced Spirits, the popularity of Spirits as a social drink, and the availability of raw materials and government support are all contributing to the development of the market. With the continued growth of the Ethiopian economy and the evolving preferences of consumers, the Spirits market is expected to continue expanding in the coming years.

Methodology

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.