Spirits - Rwanda

The Spirits market in Rwanda has been experiencing steady growth over the past few years, driven by changing customer preferences and local special circumstances.

Customer preferences: Rwandan consumers have shown an increasing interest in premium and high-quality spirits. They are willing to pay a premium price for products that offer a unique taste and superior quality. This shift in consumer preferences can be attributed to the growing middle class and their desire to indulge in luxury products. Additionally, there has been a rise in the number of young adults who are experimenting with different types of spirits, leading to increased demand for a wide variety of products.

Trends in the market: One of the key trends in the Spirits market in Rwanda is the growing popularity of locally produced spirits. Rwandan consumers are increasingly supporting local brands and products, which has led to the emergence of several local distilleries. These distilleries are focusing on producing spirits using traditional Rwandan ingredients and techniques, giving them a unique flavor profile. This trend is not only driven by the desire to support local businesses but also by the increasing demand for products that showcase the country's cultural heritage. Another trend in the market is the rising demand for ready-to-drink (RTD) spirits. Rwandan consumers are increasingly looking for convenience and ease of consumption, and RTD spirits provide them with a convenient option. These products are pre-mixed and packaged in a way that allows consumers to enjoy their favorite spirits without the need for additional ingredients or preparation. This trend is particularly popular among young adults and urban consumers who have busy lifestyles.

Local special circumstances: Rwanda has a growing tourism industry, with an increasing number of international visitors coming to the country. This has created a demand for spirits that cater to the preferences of tourists. Rwandan distilleries have responded to this demand by producing spirits that are specifically targeted towards tourists, such as flavored spirits and spirits infused with local ingredients. This has not only boosted the local spirits market but also contributed to the overall growth of the tourism industry in Rwanda.

Underlying macroeconomic factors: The economic growth in Rwanda has had a positive impact on the Spirits market. The country has experienced stable economic growth over the past decade, leading to an increase in disposable income and higher purchasing power. This has allowed consumers to spend more on luxury goods, including premium spirits. Additionally, the government has implemented policies that promote local industries, which has further supported the growth of the spirits market. In conclusion, the Spirits market in Rwanda is developing due to changing customer preferences, including a growing interest in premium and high-quality spirits, the popularity of locally produced spirits, and the rising demand for ready-to-drink options. Local special circumstances, such as the growing tourism industry, have also contributed to the market's growth. The underlying macroeconomic factors, including stable economic growth and government support for local industries, have further fueled the development 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.