Wine - Africa

The Wine market in Africa has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: In Africa, there is a growing interest in wine consumption among consumers. Wine is increasingly being seen as a sophisticated and trendy beverage choice, particularly among the urban middle class. This demographic group is more exposed to international trends and has a higher disposable income, allowing them to explore and appreciate different types of wines. Additionally, there is a rising awareness of the health benefits associated with moderate wine consumption, which has further contributed to the growing demand.

Trends in the market: One of the key trends in the African wine market is the increasing popularity of local wines. African countries, such as South Africa, Morocco, and Ethiopia, have been producing high-quality wines that are gaining recognition both locally and internationally. This trend is driven by a desire to showcase the unique flavors and characteristics of African terroir. Local winemakers are experimenting with different grape varieties and production techniques, resulting in wines that are distinctively African. Another trend in the market is the rise of wine tourism. African countries with established wine regions, such as South Africa's Stellenbosch and Franschhoek, have seen an influx of tourists interested in wine tasting and vineyard tours. This has created a demand for wine-related experiences and has led to the development of wine tourism infrastructure, including boutique hotels, restaurants, and wine festivals. Wine tourism not only boosts local economies but also promotes the African wine industry on a global scale.

Local special circumstances: The African wine market is influenced by several local special circumstances. Firstly, the continent's diverse climate and geography provide a conducive environment for grape cultivation. From the Mediterranean climate in North Africa to the cooler regions in the south, Africa offers a range of terroirs that can produce different styles of wines. This diversity allows African winemakers to cater to a wide range of consumer preferences. Furthermore, the wine industry in Africa is supported by government initiatives and investments. Many African countries have recognized the economic potential of the wine sector and have implemented policies to promote its growth. This includes providing financial incentives to winemakers, improving infrastructure for wine production, and supporting wine education and research. These efforts have helped to elevate the quality and reputation of African wines in the global market.

Underlying macroeconomic factors: The growth of the wine market in Africa is also influenced by underlying macroeconomic factors. Economic growth, urbanization, and a rising middle class have led to increased consumer spending power, allowing more consumers to afford and appreciate wine. Additionally, globalization and improved trade relations have made it easier for African winemakers to export their products to international markets, expanding their customer base and driving further growth. In conclusion, the Wine market in Africa is developing due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The growing interest in wine consumption, the popularity of local wines, the rise of wine tourism, and government support are all contributing to the growth of the African wine market. As Africa continues to showcase its unique terroir and produce high-quality wines, the market is expected to further expand in the coming years.

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.