Spirits - Tanzania

The Spirits market in Tanzania has been experiencing significant growth in recent years.

Customer preferences: Tanzanian consumers have shown a growing interest in spirits, particularly in urban areas. This can be attributed to several factors, including changing lifestyles, increased disposable income, and a desire for more sophisticated and diverse beverage options. Additionally, the influence of Western culture and the rise of social media have also contributed to the growing popularity of spirits among young adults in Tanzania.

Trends in the market: One of the key trends in the spirits market in Tanzania is the increasing demand for premium and imported spirits. Tanzanian consumers are becoming more discerning in their choices and are willing to pay a premium for high-quality products. This trend is driven by a desire for status and prestige, as well as a growing appreciation for the craftsmanship and unique flavors offered by premium spirits. As a result, there has been a surge in the availability of imported spirits in the Tanzanian market, catering to the demand for international brands. Another notable trend in the market is the rise of locally produced spirits. Tanzanian consumers are increasingly seeking out products that are made in their own country, as they value supporting local businesses and promoting economic growth. This trend has led to the emergence of local distilleries and the production of spirits using traditional Tanzanian ingredients and flavors. These locally produced spirits often have a distinct taste and appeal to consumers looking for authentic and unique experiences.

Local special circumstances: The spirits market in Tanzania is also influenced by local cultural and religious factors. Tanzania is a predominantly Muslim country, and as such, there are certain restrictions on the consumption and sale of alcoholic beverages. However, the demand for spirits remains strong, particularly among non-Muslim populations and tourists. This has led to the development of a niche market for spirits that cater to these specific consumer segments.

Underlying macroeconomic factors: The growth of the spirits market in Tanzania can be attributed to several underlying macroeconomic factors. Firstly, the country has experienced steady economic growth in recent years, resulting in an increase in disposable income among Tanzanian consumers. This has allowed for greater spending on luxury and non-essential items, including spirits. Furthermore, the tourism industry in Tanzania has been booming, attracting a large number of international visitors. This has created a demand for a wide range of alcoholic beverages, including spirits, to cater to the preferences of tourists. The growth of the tourism industry has also contributed to the availability of imported spirits in the market, as well as the development of tourism-focused products. In conclusion, the spirits market in Tanzania is experiencing growth due to changing consumer preferences, including a desire for premium and imported spirits, as well as locally produced options. The market is also influenced by local cultural and religious factors, as well as underlying macroeconomic factors such as economic growth and the booming tourism industry.

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.