Wine - Togo

The Wine market in Togo has been experiencing steady growth in recent years. Customer preferences have shifted towards wine consumption, leading to an increased demand for both domestic and imported wines. This trend can be attributed to several factors, including changing consumer tastes, increasing disposable income, and a growing interest in wine culture.

Customer preferences: Togolese consumers are increasingly opting for wine as their preferred alcoholic beverage. This shift in preferences can be attributed to a growing awareness of the health benefits associated with moderate wine consumption. Wine is often perceived as a sophisticated and elegant drink, appealing to consumers looking for a more refined drinking experience. Additionally, the versatility of wine makes it suitable for various occasions, from casual gatherings to formal events.

Trends in the market: One of the key trends in the Togolese wine market is the growing popularity of imported wines. Consumers are becoming more adventurous in their wine choices and are willing to explore different regions and grape varieties. This trend is driven by the increasing availability of imported wines in local supermarkets and wine shops. Wine producers from traditional wine-producing countries, such as France, Italy, and Spain, have recognized the market potential in Togo and are actively targeting this emerging market. Another trend in the Togolese wine market is the rise of domestic wine production. Local wineries are starting to gain recognition for their quality wines, particularly those made from indigenous grape varieties. This trend is supported by government initiatives to promote the local wine industry and improve the quality of domestically produced wines. As a result, Togolese consumers are increasingly embracing locally produced wines, contributing to the overall growth of the market.

Local special circumstances: Togo's wine market is influenced by its cultural and social context. Wine consumption is often associated with special occasions and celebrations, such as weddings and religious ceremonies. This cultural tradition has contributed to the growing demand for wine in the country. Additionally, Togo's proximity to wine-producing countries in Europe has made it easier for imported wines to enter the market, further fueling consumer interest.

Underlying macroeconomic factors: The growth of the wine market in Togo can also be attributed to underlying macroeconomic factors. The country has experienced economic growth in recent years, leading to an increase in disposable income. As a result, consumers have more purchasing power and are able to afford higher-quality wines. Furthermore, the expanding middle class in Togo has a greater propensity to spend on luxury goods, including wine. In conclusion, the Wine market in Togo is developing due to changing customer preferences, including a growing interest in wine culture and a shift towards more sophisticated drinking experiences. The market is characterized by the increasing popularity of imported wines and the rise of domestic wine production. Local special circumstances, such as cultural traditions and geographic proximity to wine-producing countries, also contribute to the growth of the market. Additionally, underlying macroeconomic factors, such as economic growth and increasing disposable income, play a significant role in driving the development of the wine market in Togo.

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.