Spirits - Zambia

The Spirits market in Zambia has been experiencing significant growth in recent years. Customer preferences have shifted towards premium and craft spirits, driving the demand for higher quality products. Additionally, the rise of the middle class and increasing disposable incomes have contributed to the growth of the market.

Customer preferences: In Zambia, there has been a noticeable shift in customer preferences towards premium and craft spirits. Consumers are becoming more discerning and are willing to pay a premium for high-quality products. This trend can be attributed to a growing appreciation for the art and craftsmanship behind spirits production. Customers are seeking unique and distinctive flavors, as well as products that are locally sourced and environmentally sustainable.

Trends in the market: One of the key trends in the Spirits market in Zambia is the increasing popularity of locally produced spirits. Consumers are showing a preference for products that are made using traditional methods and local ingredients. This trend can be seen in the growing number of craft distilleries that have emerged in the country. These distilleries are producing small-batch spirits that are gaining recognition for their quality and authenticity. Another trend in the market is the rise of flavored spirits. Flavored spirits, such as fruit-infused vodkas and flavored gins, are becoming increasingly popular among consumers. These products offer a unique and refreshing twist to traditional spirits, appealing to a wider range of tastes and preferences.

Local special circumstances: Zambia has a rich cultural heritage, and this is reflected in the Spirits market. Traditional spirits, such as maize beer and palm wine, continue to be popular among consumers. These products are often consumed during traditional ceremonies and celebrations, and are deeply ingrained in the local culture.

Underlying macroeconomic factors: The growth of the Spirits market in Zambia can be attributed to several underlying macroeconomic factors. Firstly, the rise of the middle class has led to an increase in disposable incomes, allowing consumers to spend more on luxury and premium products. Additionally, urbanization and changing lifestyles have contributed to the growth of the market. As more people move to cities and adopt Western lifestyles, there is a growing demand for spirits and other alcoholic beverages. Furthermore, the tourism industry in Zambia has been growing steadily, attracting both domestic and international tourists. This has created a demand for high-quality spirits, as tourists seek to experience the local culture and flavors. The tourism industry has also contributed to the growth of the craft spirits sector, as tourists are often interested in trying unique and locally produced products. In conclusion, the Spirits market in Zambia is experiencing growth due to changing customer preferences, including a shift towards premium and craft spirits. The rise of the middle class and increasing disposable incomes have also contributed to the growth of the market. Additionally, local special circumstances, such as the popularity of traditional spirits, and underlying macroeconomic factors, such as urbanization and the growth of the tourism industry, 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.