Alcoholic Drinks - Namibia

The Alcoholic Drinks market in Namibia has been experiencing steady growth in recent years.

Customer preferences: Namibian consumers have shown a growing interest in premium and craft alcoholic beverages. This trend can be attributed to a desire for higher quality products and a willingness to pay a premium for unique and artisanal offerings. Additionally, there is a preference for locally-produced alcoholic drinks, as consumers value supporting local businesses and promoting domestic industries.

Trends in the market: One of the key trends in the Namibian Alcoholic Drinks market is the increasing popularity of spirits, particularly gin. Gin has seen a surge in demand due to its versatility and the availability of a wide range of flavors. This trend can be attributed to the growing cocktail culture in Namibia, as consumers are increasingly experimenting with different spirits and mixers to create unique and personalized drinks. Another trend in the market is the rise of low-alcohol and non-alcoholic beverages. Health-conscious consumers are seeking alternatives to traditional alcoholic drinks, and this has led to an increase in the availability and variety of low-alcohol and non-alcoholic options. This trend is also driven by changing social norms and a desire to reduce alcohol consumption.

Local special circumstances: Namibia has a strong beer culture, with beer being the most popular alcoholic beverage in the country. This can be attributed to the influence of German colonization, as well as the hot climate, which makes beer a refreshing choice for many Namibians. The beer market in Namibia is dominated by a few major players, but there is also a growing craft beer scene, with local breweries producing a variety of unique and innovative beers.

Underlying macroeconomic factors: Namibia has a relatively stable economy, with a growing middle class and increasing disposable incomes. This has contributed to the growth of the Alcoholic Drinks market, as consumers have more purchasing power to spend on discretionary items such as alcoholic beverages. Additionally, the tourism industry in Namibia is expanding, and this has created opportunities for the Alcoholic Drinks market, as tourists often seek out local drinks and experiences. In conclusion, the Alcoholic Drinks market in Namibia is experiencing growth due to changing customer preferences, including a preference for premium and craft beverages, as well as a growing interest in low-alcohol and non-alcoholic options. The market is also influenced by local special circumstances, such as the strong beer culture and the growing craft beer scene. Underlying macroeconomic factors, such as a stable economy and a growing middle class, are also contributing to 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.