Wine - Rwanda

The Wine market in Rwanda has been experiencing significant growth in recent years.

Customer preferences: Rwandan consumers are increasingly developing a taste for wine, with a growing number of people incorporating it into their social gatherings and meals. Wine is seen as a sophisticated and trendy beverage, appealing to a younger demographic who are looking for new and exciting experiences. As the middle class continues to expand in Rwanda, more people have disposable income to spend on luxury items like wine.

Trends in the market: One of the key trends in the wine market in Rwanda is the increasing demand for imported wines. Rwandan consumers are becoming more knowledgeable about different wine regions and grape varieties, and are seeking out a wider selection of wines from around the world. This trend is driven by a desire for variety and the perception that imported wines are of higher quality. Another trend in the market is the rise of wine tourism. Rwanda's beautiful landscapes and growing wine industry have attracted tourists who are interested in exploring the country's vineyards and wineries. This has led to the development of wine tours and tastings, creating a new revenue stream for wineries and boosting the overall wine market.

Local special circumstances: Rwanda's wine market is unique due to its location and climate. The country's high altitude and volcanic soil create ideal conditions for grape cultivation, resulting in the production of high-quality wines. Local wineries are taking advantage of these natural advantages and are producing wines that are gaining recognition both domestically and internationally.

Underlying macroeconomic factors: The growth of the wine market in Rwanda can be attributed to several macroeconomic factors. Firstly, the country has experienced a stable economic growth in recent years, resulting in an increase in disposable income. This has allowed more people to afford luxury items like wine. Secondly, Rwanda has seen a rise in tourism, with an increasing number of visitors coming to explore the country's natural beauty and cultural heritage. This has created a demand for wine as tourists look to experience local flavors and products. Lastly, the government of Rwanda has been actively promoting the wine industry and supporting local wineries. This includes providing incentives for investment in the sector and facilitating the export of Rwandan wines. These efforts have helped to create a favorable business environment for wineries and have contributed to the growth of the wine market in Rwanda. In conclusion, the wine market in Rwanda is experiencing significant growth due to increasing customer preferences for wine, the emergence of new trends such as wine tourism, and the unique local circumstances that allow for the production of high-quality wines. These factors, combined with underlying macroeconomic factors such as stable economic growth and government support, have created a favorable environment for the development of the wine market in Rwanda.

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.