Alcoholic Drinks - Botswana

The Alcoholic Drinks market in Botswana has been experiencing significant growth in recent years.

Customer preferences: The preferences of customers in Botswana have been shifting towards premium and craft alcoholic drinks. Consumers are increasingly seeking out unique and high-quality beverages, including craft beers, artisanal spirits, and premium wines. This trend is driven by a growing middle class with higher disposable incomes and a desire for more sophisticated and diverse drinking options. Additionally, there is a rising interest in locally produced alcoholic drinks, as consumers value supporting local businesses and experiencing the unique flavors and traditions of Botswana.

Trends in the market: One of the major trends in the Alcoholic Drinks market in Botswana is the increasing popularity of craft beers. Craft breweries have been emerging across the country, offering a wide range of unique and flavorful beers. This trend is driven by a growing consumer demand for more diverse and interesting beer options, as well as a desire to support local businesses. Craft beers are often seen as premium products, appealing to consumers who are willing to pay a higher price for a higher quality and more unique drinking experience. Another trend in the market is the rising consumption of wine. Wine consumption in Botswana has been steadily increasing, with a growing number of consumers developing a taste for both local and imported wines. This trend is influenced by changing consumer preferences, as well as an increased availability and affordability of wine in the country. Wine is often associated with sophistication and luxury, making it an attractive choice for consumers looking to elevate their drinking experiences.

Local special circumstances: Botswana has a unique drinking culture that is influenced by both traditional and modern factors. Traditional alcoholic beverages, such as the locally brewed beer called "bojalwa," still hold a significant place in Botswana's drinking culture. These traditional beverages are often consumed during social gatherings and celebrations, and they play an important role in the country's cultural heritage. While the market for traditional alcoholic drinks remains strong, there is also a growing interest in modern and imported beverages, reflecting the changing tastes and preferences of consumers.

Underlying macroeconomic factors: The growth of the Alcoholic Drinks market in Botswana is supported by several underlying macroeconomic factors. The country has experienced stable economic growth in recent years, which has led to an increase in disposable incomes and consumer spending. This has allowed consumers to allocate a larger portion of their budgets towards discretionary items such as alcoholic drinks. Additionally, Botswana has a relatively young and growing population, which provides a large consumer base for the market. The country's political stability and favorable business environment also attract foreign investment and contribute to the growth of the Alcoholic Drinks 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.