Beer - Eastern Africa

The Beer market in Eastern Africa has been experiencing significant growth in recent years. Customer preferences in the region have played a major role in driving this growth. Beer is a popular alcoholic beverage choice among consumers in Eastern Africa, and it is often seen as a social drink that is enjoyed during celebrations and gatherings. Additionally, the younger population in the region has shown a growing interest in beer, contributing to the increased demand. Trends in the market indicate a shift towards premium and craft beers. Consumers are becoming more discerning in their beer choices, seeking out unique flavors and higher quality products. This trend is in line with global preferences, as craft beer has gained popularity worldwide. As a result, breweries in Eastern Africa are expanding their offerings to include a wider range of beer styles and flavors to cater to this growing demand. Local special circumstances also contribute to the development of the beer market in Eastern Africa. The region has a rich cultural heritage, and traditional brewing methods are still practiced in many communities. This has led to the emergence of microbreweries and brewpubs that focus on producing small-batch, artisanal beers. These local breweries often incorporate traditional ingredients and brewing techniques, offering consumers a unique and authentic beer experience. Underlying macroeconomic factors have also played a role in the growth of the beer market in Eastern Africa. The region has experienced steady economic growth in recent years, leading to an increase in disposable income and a growing middle class. As a result, consumers have more purchasing power and are able to afford higher-priced beers. This has created opportunities for breweries to introduce premium and craft beer options to the market. In conclusion, the Beer market in Eastern Africa is developing due to customer preferences for social drinking, a shift towards premium and craft beers, local special circumstances such as traditional brewing methods, and underlying macroeconomic factors such as economic growth and increasing disposable income. These factors have created a favorable environment for breweries to expand their offerings and cater to the evolving tastes and preferences of consumers in the region.

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.