Spirits - Mozambique

The Spirits market in Mozambique has been experiencing steady growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Mozambique has a growing middle class population with increasing disposable income, which has led to a shift in customer preferences towards premium and high-quality spirits. Consumers are now more willing to spend on luxury and premium products, including spirits, as a way to showcase their social status and lifestyle. This has resulted in a growing demand for imported spirits, particularly whiskey, vodka, and rum, which are seen as symbols of sophistication and refinement.

Trends in the market: One of the key trends in the Mozambican spirits market is the rising popularity of craft spirits. Craft spirits are gaining traction among consumers who value authenticity, uniqueness, and local production. This trend is driven by a desire for high-quality, artisanal products that offer a distinct flavor profile and a sense of connection to the local culture. As a result, there has been a surge in the number of local craft distilleries and a growing demand for locally produced spirits, such as gin and liqueurs. Another trend in the market is the increasing demand for ready-to-drink (RTD) cocktails and pre-mixed spirits. This trend is driven by convenience-seeking consumers who are looking for hassle-free and time-saving options. RTD cocktails offer a convenient solution for social gatherings and parties, as they eliminate the need for mixing and measuring ingredients. In addition, the growing popularity of RTD cocktails is also influenced by the rise of cocktail culture and the desire to replicate bar-quality drinks at home.

Local special circumstances: Mozambique is a country with a rich cultural heritage and a strong tradition of brewing and distilling alcoholic beverages. The local special circumstances in Mozambique include the production and consumption of traditional spirits, such as tchopanduro and matapa. These traditional spirits hold cultural significance and are often consumed during special occasions and ceremonies. While the market for traditional spirits remains niche, it continues to play a role in shaping consumer preferences and contributing to the overall spirits market in Mozambique.

Underlying macroeconomic factors: The spirits market in Mozambique is also influenced by underlying macroeconomic factors, such as economic growth, urbanization, and tourism. The country has been experiencing steady economic growth, which has resulted in an expanding middle class and an increase in consumer spending power. Urbanization has led to a concentration of population in cities, where consumers have easier access to a wider range of products, including spirits. Additionally, the growth of tourism in Mozambique has contributed to the demand for spirits, as tourists often seek to explore and experience the local culture through food and beverages. In conclusion, the Spirits market in Mozambique is experiencing growth due to changing customer preferences towards premium and high-quality spirits, the emergence of craft spirits and the increasing demand for convenience in the form of RTD cocktails. The local special circumstances, such as the tradition of producing and consuming traditional spirits, also play a role in shaping the market. Furthermore, underlying macroeconomic factors, such as economic growth, urbanization, and tourism, contribute to the overall development of the spirits market in Mozambique.

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.