Spirits - Eastern Africa

The Spirits market in Eastern Africa has been experiencing significant growth in recent years. Customer preferences in the region have been shifting towards premium and high-quality spirits. Consumers are becoming more discerning and are willing to pay a premium for spirits that offer unique flavors and superior quality. This trend is driven by a growing middle class with higher disposable incomes and an increasing desire for luxury products. One of the key trends in the market is the rise of locally produced spirits. Eastern Africa has a rich tradition of brewing and distilling, and consumers are increasingly embracing locally made spirits. These spirits often incorporate traditional ingredients and flavors, which resonate with consumers looking for authentic and unique experiences. This trend is also driven by a desire to support local businesses and promote economic growth in the region. Another trend in the market is the growing popularity of craft spirits. Craft spirits are produced in small batches and often focus on unique flavors and production methods. Consumers are increasingly drawn to the craftsmanship and attention to detail that goes into producing these spirits. Craft spirits also offer a sense of exclusivity and prestige, which appeals to consumers looking for a premium and differentiated product. Local special circumstances in Eastern Africa also play a role in the development of the Spirits market. The region has a rich cultural heritage and a strong tradition of brewing and distilling. This heritage has created a strong foundation for the growth of the spirits industry. Additionally, the region's diverse climate and geography offer opportunities for the production of a wide range of spirits, including rum, gin, and vodka. Underlying macroeconomic factors have also contributed to the growth of the Spirits market in Eastern Africa. The region has experienced sustained economic growth in recent years, which has led to an increase in disposable incomes. This has allowed consumers to spend more on premium and high-quality spirits. Additionally, the growing tourism industry in the region has created a demand for spirits, as tourists seek to experience the local culture and flavors. In conclusion, the Spirits market in Eastern Africa is developing in response to changing customer preferences, local special circumstances, and underlying macroeconomic factors. Consumers in the region are increasingly seeking premium and high-quality spirits, with a growing interest in locally produced and craft spirits. The region's rich cultural heritage and diverse climate offer opportunities for the production of a wide range of spirits. Additionally, sustained economic growth and a thriving tourism industry have contributed 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.