Beer - Zambia

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

Customer preferences: Zambian consumers have shown a strong preference for beer as their alcoholic beverage of choice. This can be attributed to cultural factors, as beer is deeply ingrained in the social fabric of the country. In addition, the affordability and availability of beer have made it a popular choice among consumers.

Trends in the market: One notable trend in the Zambian beer market is the increasing demand for craft beer. This trend mirrors the global shift towards craft beer, as consumers seek unique and high-quality products. Craft breweries in Zambia have capitalized on this trend by offering a wide range of flavors and styles, appealing to a niche market of beer enthusiasts. Another trend in the market is the growing popularity of low-alcohol and non-alcoholic beer. This can be attributed to changing consumer preferences towards healthier lifestyles and the desire for more options in the market. Breweries in Zambia have responded to this trend by introducing a variety of low-alcohol and non-alcoholic beer options, catering to a wider range of consumer preferences.

Local special circumstances: Zambia's beer market is also influenced by local cultural practices and traditions. Beer is often consumed during social gatherings and events, such as weddings and traditional ceremonies. This has created a strong demand for beer in the country, as it is seen as an integral part of these celebrations. Furthermore, the beer market in Zambia is also influenced by the country's climate. The hot and humid weather conditions make beer a popular choice among consumers, as it provides a refreshing and cooling effect. This has contributed to the overall growth of the beer market in the country.

Underlying macroeconomic factors: The growth of the beer market in Zambia can also be attributed to favorable macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income. This has allowed consumers to spend more on leisure activities, including the consumption of beer. Additionally, the government of Zambia has implemented policies to promote the growth of the beer industry. This includes providing incentives for local breweries and ensuring a favorable business environment. These policies have attracted investment in the sector and have contributed to the overall growth of the beer market in the country. In conclusion, the Beer market in Zambia has been growing due to customer preferences for beer, including the demand for craft beer and low-alcohol options. Local special circumstances, such as cultural practices and climate, have also contributed to the growth of the market. Favorable macroeconomic factors, including economic growth and government policies, have further supported the development of the beer industry in Zambia.

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.