Beer - Madagascar

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

Customer preferences: Madagascar is known for its vibrant and diverse culture, and this is reflected in the preferences of its beer consumers. The market is dominated by domestically produced beers, which are preferred for their unique flavors and local ingredients. Customers in Madagascar also have a growing preference for craft beers, which offer a wider variety of flavors and styles. Additionally, there is a rising demand for low-alcohol and non-alcoholic beers, as health-conscious consumers seek alternatives to traditional alcoholic beverages.

Trends in the market: One of the key trends in the Beer market in Madagascar is the increasing popularity of craft beers. Craft breweries have been gaining traction in recent years, offering consumers a wide range of unique and flavorful beers. These breweries often use locally sourced ingredients, which appeals to customers looking for an authentic and sustainable drinking experience. The trend towards craft beers is also driven by the growing interest in beer tourism, with breweries becoming popular destinations for both locals and tourists. Another trend in the market is the rise of low-alcohol and non-alcoholic beers. As health and wellness become more important to consumers, there is a growing demand for beverages that offer a lower alcohol content or no alcohol at all. This trend is particularly evident among younger consumers, who are more health-conscious and mindful of their alcohol consumption. Non-alcoholic beers also appeal to those who want to enjoy the taste of beer without the effects of alcohol.

Local special circumstances: Madagascar has a unique beer culture, with a strong emphasis on locally produced beers. This is due to a combination of factors, including the availability of local ingredients and the desire to support local businesses. Locally produced beers often incorporate traditional flavors and brewing techniques, which adds to their appeal. Additionally, the beer market in Madagascar is heavily influenced by the country's tourism industry. With a growing number of tourists visiting the country each year, there is a demand for beers that showcase the local culture and flavors.

Underlying macroeconomic factors: The Beer market in Madagascar is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, which has led to an increase in disposable income. This has allowed consumers to spend more on leisure activities, including dining out and socializing. As a result, there is a growing demand for beers in restaurants, bars, and social gatherings. Additionally, the government has implemented policies to support the growth of the beer industry, such as reducing import tariffs on raw materials and providing incentives for local breweries. These factors have contributed to the positive growth of the Beer market in Madagascar.

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.