Wine - Madagascar

The Wine market in Madagascar has been experiencing significant growth in recent years. Customer preferences have shifted towards wine as a popular beverage choice, leading to increased demand and consumption. This trend can be attributed to several factors, including changing lifestyles, increasing disposable income, and a growing appreciation for wine culture.

Customer preferences: In Madagascar, customer preferences have shifted towards wine as a preferred beverage choice. This can be attributed to changing lifestyles and an increasing interest in wine culture. Wine is seen as a sophisticated and elegant drink, and its consumption is often associated with special occasions and celebrations. As the middle class in Madagascar continues to grow, more people have the disposable income to indulge in wine consumption.

Trends in the market: One of the key trends in the wine market in Madagascar is the increasing demand for imported wines. Local wine production is limited, and consumers are increasingly looking for a wider variety of options from different regions around the world. This trend is driven by a growing interest in exploring different flavors and styles of wine, as well as a desire to experience wines from famous wine-producing regions such as France, Italy, and South Africa. Another trend in the market is the rise of wine tourism. Madagascar is known for its natural beauty and unique landscapes, and wine tourism has become a popular activity for both locals and tourists. Wineries and vineyards in Madagascar are attracting visitors who are interested in learning about the wine-making process, tasting different wines, and enjoying the picturesque surroundings. This trend has contributed to the growth of the wine market and has also created opportunities for local businesses to cater to the needs of wine tourists.

Local special circumstances: Madagascar has a unique climate and soil composition that is conducive to wine production. The country's diverse microclimates provide ideal conditions for growing a variety of grapes, and local winemakers have been able to produce high-quality wines that showcase the terroir of the region. This has contributed to the development of a local wine industry, although it is still relatively small compared to other wine-producing countries.

Underlying macroeconomic factors: The growth of the wine market in Madagascar can be attributed to several underlying macroeconomic factors. Firstly, the country has experienced steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. This has allowed more people to afford wine and has contributed to the rising demand in the market. Secondly, the increasing urbanization in Madagascar has led to the emergence of a middle class with more refined tastes and preferences. As people move to cities and adopt a more cosmopolitan lifestyle, they are more likely to explore different types of food and beverages, including wine. Lastly, the growing tourism industry in Madagascar has also played a role in the development of the wine market. As more tourists visit the country, they bring with them a demand for a wider variety of products and experiences, including wine. This has created opportunities for both local and imported wines to thrive in the market. Overall, the wine market in Madagascar is experiencing growth and development due to changing customer preferences, increasing disposable income, a growing interest in wine culture, and favorable macroeconomic factors. As the market continues to evolve, it presents opportunities for both local and international players to capitalize on the growing demand for wine in the country.

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.