Wine - Egypt

Egypt, with its rich history and vibrant culture, has seen a growing trend in the Wine market.

Customer preferences: Egyptian consumers are increasingly interested in exploring new flavors and experiencing different types of wines. This shift in preferences can be attributed to several factors. Firstly, there has been a rise in disposable income among the middle class, allowing consumers to indulge in luxury goods such as wine. Additionally, the younger generation is becoming more open to trying new products, including wines, as they are exposed to global trends through social media and travel experiences.

Trends in the market: One of the key trends in the Wine market in Egypt is the growing demand for imported wines. Egyptian consumers are becoming more knowledgeable about different wine regions and grape varieties, and are seeking out wines from renowned wine-producing countries such as France, Italy, and Spain. This trend is driven by the desire for quality and authenticity, as consumers perceive imported wines to be of higher quality than locally produced ones. Another trend in the market is the increasing popularity of wine bars and wine tastings. These venues provide an opportunity for consumers to learn about different wines and expand their knowledge. Wine tastings, in particular, have become a social activity among friends and colleagues, creating a demand for a wide variety of wines to cater to different tastes and preferences.

Local special circumstances: Egypt has a predominantly Muslim population, and the consumption of alcohol is prohibited in Islam. However, there is a significant Christian minority in the country, and they are allowed to consume alcohol within certain limits. This has created a niche market for wine producers, who cater to the Christian population and the small number of tourists who visit Egypt.

Underlying macroeconomic factors: The growing Wine market in Egypt can be attributed to several macroeconomic factors. Firstly, the country has experienced a period of political stability in recent years, which has increased consumer confidence and boosted economic growth. This has led to an increase in disposable income and a rise in consumer spending on luxury goods, including wine. Furthermore, Egypt has seen a rise in tourism in recent years, with visitors from around the world coming to explore its rich history and cultural heritage. This influx of tourists has created a demand for high-quality wines, as they seek to experience the local cuisine and beverages. In conclusion, the Wine market in Egypt is developing due to changing customer preferences, including a desire for new flavors and experiences. The growing demand for imported wines, the popularity of wine bars and tastings, and the presence of a niche market for wine producers all contribute to the market's growth. Additionally, macroeconomic factors such as political stability and increased tourism have played a role in driving the market forward.

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.