Wine - Western Africa

The Wine market in Western Africa has been experiencing significant growth in recent years. Customer preferences for wine have been shifting, leading to increased demand and consumption in the region. This trend can be attributed to a combination of factors, including changing tastes, increased disposable income, and a growing middle class.

Customer preferences: In Western Africa, there has been a noticeable shift in customer preferences towards wine. Traditionally, the region has been known for its preference for spirits and beer. However, in recent years, there has been a growing interest in wine among consumers. This can be attributed to changing tastes and an increasing desire for variety and sophistication in alcoholic beverages. Wine is seen as a more premium and sophisticated option compared to other alcoholic beverages, and consumers are increasingly willing to explore and experiment with different types and flavors of wine.

Trends in the market: One of the key trends in the wine market in Western Africa is the increasing popularity of imported wines. Consumers in the region are becoming more exposed to international brands and are developing a taste for wines from different countries. This trend can be attributed to factors such as globalization, increased travel, and the influence of social media. As a result, there has been a surge in the importation of wines from countries such as France, Italy, and South Africa. Another trend in the market is the rise of local wine production. While imported wines still dominate the market, there has been a noticeable increase in the production of wine within the region. This can be attributed to a combination of factors, including government support, favorable climate conditions, and the availability of suitable land for vineyards. Local wineries are producing wines that cater to the tastes and preferences of the local market, offering a unique and distinct flavor profile.

Local special circumstances: One of the unique characteristics of the wine market in Western Africa is the cultural significance of wine. Wine is often associated with celebrations, special occasions, and social gatherings. In many countries in the region, wine is seen as a symbol of prestige and success. This cultural significance has contributed to the growing demand for wine in the region.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the wine market in Western Africa. One of the key factors is the increasing disposable income and purchasing power of consumers. As the region experiences economic growth and development, more consumers have the financial means to afford and enjoy wine. Additionally, the growing middle class in Western Africa has also played a significant role in driving the demand for wine. As more people move up the socio-economic ladder, they are seeking out new experiences and are willing to spend more on premium products such as wine. In conclusion, the Wine market in Western Africa is experiencing significant growth due to changing customer preferences, increasing disposable income, and a growing middle class. The market is witnessing a shift towards imported wines and the rise of local wine production. Cultural significance and underlying macroeconomic factors also contribute to the development of the market. As the region continues to develop and consumer tastes evolve, the wine market in Western Africa is expected to continue its growth trajectory.

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.