Wine - Namibia

Namibia, a country known for its stunning landscapes and diverse wildlife, is also experiencing a growing wine market. With its unique geographical location and favorable climate, Namibia has become an emerging player in the wine industry. Customer preferences in Namibia are shifting towards wine consumption, as more people are starting to appreciate the taste and cultural significance of wine. Wine is no longer seen as a luxury item, but rather as a beverage that can be enjoyed on various occasions. The younger generation, in particular, is showing a growing interest in wine, opting for it over other alcoholic beverages. This change in preferences can be attributed to the increasing exposure to international cuisines and the influence of global wine trends. Trends in the Namibian wine market reflect the global trends in the industry. There is a rising demand for organic and sustainably produced wines, as consumers become more conscious about the environmental impact of their choices. As a result, local wineries are adopting sustainable practices and promoting their eco-friendly production methods. Furthermore, there is a growing interest in wine tourism, with visitors from both within Namibia and abroad seeking out wine tasting experiences and vineyard tours. Local special circumstances play a significant role in the development of the wine market in Namibia. The country's unique geography, characterized by vast desert landscapes and a cool coastal climate, creates ideal conditions for grape cultivation. Namibia's proximity to South Africa, a well-established wine-producing country, also contributes to the growth of the wine market. This proximity allows for easy access to expertise, technology, and resources, enabling local winemakers to produce high-quality wines that can compete on a global scale. Underlying macroeconomic factors also contribute to the development of the wine market in Namibia. The country's stable economic growth and increasing disposable income have led to a rise in consumer spending power. This, coupled with a growing middle class, has created a larger market for premium and imported wines. Additionally, Namibia's strategic location as a gateway to other African countries presents opportunities for wine producers to expand their reach beyond the local market. In conclusion, the wine market in Namibia is experiencing growth and development due to changing customer preferences, global trends, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, it is expected that Namibia will establish itself as a prominent player in the wine industry, offering unique and high-quality wines to both domestic and international consumers.

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.