Beer - Southern Africa

The Beer market in Southern Africa has been experiencing significant growth in recent years. Customer preferences in the region have played a major role in driving this growth. Southern Africans have a strong cultural affinity for beer, and it is often considered the beverage of choice for social gatherings and celebrations. Additionally, the hot climate in many parts of the region has contributed to the popularity of beer as a refreshing and thirst-quenching drink. Trends in the market show that there is a growing demand for craft beers and flavored beers in Southern Africa. Consumers are increasingly seeking unique and diverse beer options, and craft breweries have been quick to capitalize on this trend. These smaller, independent breweries offer a wide range of flavors and styles, appealing to consumers who are looking for something different from the traditional mass-produced beers. Another trend in the market is the increasing popularity of low-alcohol and non-alcoholic beers. Health and wellness have become important considerations for consumers, and many are opting for beers with lower alcohol content or no alcohol at all. This trend is also driven by the growing number of individuals who are choosing to abstain from alcohol for personal or religious reasons. Local special circumstances in Southern Africa have also contributed to the development of the Beer market. The region is known for its vibrant and diverse cultural heritage, and this is reflected in the beer market as well. Many countries in Southern Africa have their own unique beer traditions and brewing techniques, which adds to the variety and appeal of the market. Additionally, the presence of large multinational breweries in the region has helped to drive innovation and competition, further fueling the growth of the market. Underlying macroeconomic factors have also played a role in the development of the Beer market in Southern Africa. Economic growth in the region has led to an increase in disposable income, allowing more consumers to afford beer as a regular part of their consumption. Additionally, urbanization and the growth of the middle class have contributed to the expansion of the market, as more people have access to a wider range of beer options. In conclusion, the Beer market in Southern Africa is experiencing growth due to customer preferences for beer as a social and refreshing drink, as well as the demand for craft beers, flavored beers, and low-alcohol options. Local special circumstances, such as cultural diversity and the presence of multinational breweries, have also contributed to the market's development. Economic factors, including rising disposable income and urbanization, have further fueled the growth of the market.

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.