Beer - Namibia

The Beer market in Namibia has been experiencing significant growth in recent years.

Customer preferences: Namibians have shown a growing preference for beer as their beverage of choice. This can be attributed to several factors, including the cultural significance of beer in the country. Beer is often enjoyed during social gatherings and celebrations, and is seen as a way to connect with friends and family. Additionally, the hot climate in Namibia makes beer a refreshing choice for many consumers.

Trends in the market: One of the key trends in the beer market in Namibia is the increasing popularity of craft beer. Craft breweries have been emerging in the country, offering a wide range of unique and flavorsome beers. This trend can be seen as a reflection of the global craft beer movement, as consumers in Namibia are becoming more interested in trying new and innovative beer styles. Another trend in the market is the growing demand for low-alcohol and non-alcoholic beer options. Health-conscious consumers are seeking alternatives to traditional beers that are lower in calories and alcohol content. This trend is in line with global consumer preferences, as more people are looking for healthier beverage options.

Local special circumstances: Namibia has a strong beer culture, with beer being deeply ingrained in the social fabric of the country. This cultural significance of beer has contributed to the steady growth of the beer market in Namibia. Additionally, the presence of a large tourism industry in the country has also played a role in driving the demand for beer.

Underlying macroeconomic factors: Namibia has experienced steady economic growth in recent years, which has contributed to an increase in disposable income among consumers. This rise in disposable income has allowed consumers to spend more on discretionary items such as beer. Furthermore, the country has a relatively young population, which is more likely to consume beer compared to older age groups. These demographic factors have also contributed to the growth of the beer market in Namibia. In conclusion, the Beer market in Namibia has been growing due to customer preferences for beer as a social and refreshing beverage, the increasing popularity of craft beer and the demand for low-alcohol and non-alcoholic options. The cultural significance of beer in Namibia and the presence of a large tourism industry have also contributed to the growth of the market. Additionally, steady economic growth and a young population have provided a favorable macroeconomic environment for the beer market in Namibia.

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.