Spirits - Southern Africa

The Spirits market in Southern Africa is experiencing significant growth and development due to various factors. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this positive trajectory. Customer preferences in Southern Africa are 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 craftsmanship. This preference for premium spirits is driven by a growing middle class with higher disposable incomes and a desire for luxury products. Additionally, there is a rising trend of consumers seeking out locally produced spirits, as they value supporting local businesses and enjoying products that reflect their cultural heritage. Trends in the market further support the growth of the Spirits market in Southern Africa. One notable trend is the increasing popularity of craft spirits. Craft spirits are gaining traction among consumers who are looking for unique and artisanal products. These spirits often have a local or regional focus, incorporating indigenous ingredients and production methods. Craft spirits also appeal to consumers who value sustainability and ethical production practices. Another trend in the market is the rise of flavored spirits, such as fruit-infused vodkas and botanical gins. These flavored spirits offer a wider range of options for consumers and cater to their desire for innovative and exciting flavors. Local special circumstances also contribute to the development of the Spirits market in Southern Africa. The region has a rich cultural heritage and a long history of traditional spirits production. This heritage and expertise provide a solid foundation for the growth of the market. Additionally, Southern Africa is known for its diverse and abundant natural resources, including a wide variety of fruits, herbs, and botanicals. This allows for the production of unique and flavorful spirits that cater to local tastes and preferences. Underlying macroeconomic factors also play a role in the growth of the Spirits market in Southern Africa. The region is experiencing economic growth, with rising incomes and an expanding middle class. This economic growth translates into increased purchasing power and a greater willingness to spend on premium products, including spirits. Furthermore, Southern Africa is becoming an attractive destination for international investors in the spirits industry. This influx of foreign investment brings in new technologies, expertise, and marketing strategies, which further stimulate market growth. In conclusion, the Spirits market in Southern Africa is developing rapidly due to changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. As consumers seek premium and high-quality spirits, the market is responding with a wide range of options, including craft spirits and flavored spirits. The region's rich cultural heritage, natural resources, and economic growth provide a solid foundation for the growth of the market. With these factors in play, the Spirits market in Southern Africa is poised for continued expansion and success.

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.