Wine - Central Africa

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

Customer preferences: In Central Africa, there has been a shift in customer preferences towards wine consumption. Wine is increasingly being seen as a sophisticated and trendy beverage choice, particularly among the younger population. Customers are becoming more knowledgeable about different types of wine and are willing to explore new varieties and flavors. This has led to an increase in demand for both red and white wines in the region.

Trends in the market: One of the key trends in the wine market in Central Africa is the growing popularity of local wine production. Local wineries are emerging and producing high-quality wines that cater to the taste preferences of the local population. This trend is driven by a desire to support local businesses and promote regional economic growth. Additionally, the availability of local wines at affordable prices has made them more accessible to a wider range of consumers. Another trend in the market is the increasing demand for organic and natural wines. Consumers in Central Africa are becoming more health-conscious and are seeking products that are free from artificial additives and chemicals. This has led to a rise in the production and consumption of organic wines, which are perceived as healthier and more environmentally friendly.

Local special circumstances: Central Africa has a rich cultural heritage and a tradition of wine consumption. Wine is often associated with celebrations, social gatherings, and special occasions. This cultural significance has contributed to the growing popularity of wine in the region. Additionally, the region's climate and soil conditions are suitable for grape cultivation, making it an ideal location for wine production.

Underlying macroeconomic factors: The economic development and rising disposable incomes in Central Africa have played a significant role in the growth of the wine market. As the middle class continues to expand, more consumers have the financial means to afford wine, leading to increased demand. Furthermore, the region's growing tourism industry has also contributed to the growth of the wine market, as tourists often seek out local wines as part of their cultural experience. In conclusion, the Wine market in Central Africa is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The increasing popularity of wine, the emergence of local wineries, the demand for organic and natural wines, and the cultural significance of wine consumption have all contributed to the market's development. With the region's economic growth and rising disposable incomes, the wine market in Central Africa is expected to continue its upward trajectory 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.