Beer - Uganda

The Beer market in Uganda has been experiencing steady growth over the past few years.

Customer preferences: Ugandans have shown a growing preference for beer as their beverage of choice. This can be attributed to several factors. Firstly, beer is seen as a social drink that is often consumed during social gatherings, celebrations, and events. It has become a symbol of camaraderie and togetherness among friends and family. Secondly, beer is widely available and affordable, making it accessible to a large portion of the population. Lastly, the taste and variety of beer have also played a role in its popularity, with local breweries offering a range of flavors to cater to different consumer preferences.

Trends in the market: One of the key trends in the beer market in Uganda is the increasing popularity of craft beer. Craft beer has gained a following among younger consumers who are looking for unique and artisanal products. This trend can be seen in the growing number of microbreweries and brewpubs that have emerged in recent years. These establishments offer a wide variety of craft beers, often made with locally sourced ingredients, which appeals to consumers who are seeking a more authentic and flavorful experience. Another trend in the market is the rise of low-alcohol and non-alcoholic beer. Health consciousness is becoming more prevalent among consumers, and many are opting for beverages with lower alcohol content or no alcohol at all. This trend is driven by factors such as the desire to lead a healthier lifestyle, concerns about the negative effects of alcohol, and the availability of a wider range of non-alcoholic options. As a result, breweries in Uganda have started to introduce low-alcohol and non-alcoholic beer to cater to this growing demand.

Local special circumstances: Uganda has a vibrant and growing tourism industry, which has had a positive impact on the beer market. Tourists visiting the country often seek out local experiences, and trying the local beer is often on their list. This has led to an increase in beer consumption, especially among tourists who are looking to explore the local culture and traditions. Additionally, the government has implemented policies to promote the tourism industry, which has further boosted the demand for beer.

Underlying macroeconomic factors: The steady economic growth in Uganda has contributed to the development of the beer market. As the country's economy continues to expand, disposable incomes have increased, allowing consumers to spend more on discretionary items such as beer. Additionally, urbanization and the growth of the middle class have also played a role in the market's development. As more people move to cities and experience an improvement in their living standards, the demand for beer has increased. In conclusion, the Beer market in Uganda has been growing steadily due to customer preferences for beer as a social drink, the popularity of craft beer and low-alcohol options, the influence of the tourism industry, and the underlying macroeconomic factors such as economic growth and urbanization. These factors have created a favorable environment for the beer market to thrive in Uganda.

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.