Wine - Zimbabwe

The Wine market in Zimbabwe has seen significant development in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Zimbabwean consumers have shown an increasing interest in wine, with a growing preference for both domestic and imported varieties. This can be attributed to a shift towards a more sophisticated and cosmopolitan lifestyle, as well as the influence of international travel and exposure to different cultures. Wine is increasingly seen as a symbol of status and refinement, leading to a rise in consumption among middle-class and affluent consumers.

Trends in the market: One of the key trends in the Zimbabwean wine market is the growing demand for red wine. Red wine is believed to have health benefits and is often associated with celebrations and special occasions. As a result, red wine consumption has been on the rise, with a preference for full-bodied and fruity varieties. White wine, on the other hand, remains popular among consumers who prefer a lighter and crisper taste. Another trend in the market is the increasing popularity of sparkling wine. Sparkling wine is often associated with luxury and celebration, making it a popular choice for special occasions such as weddings and anniversaries. The demand for sparkling wine has been further fueled by the rise of wine tourism in Zimbabwe, with more vineyards offering guided tours and tastings.

Local special circumstances: Zimbabwe has a favorable climate for grape cultivation, particularly in regions such as the Eastern Highlands and the Zambezi Valley. This has led to the establishment of several vineyards and wineries in the country, producing both still and sparkling wines. The local wine industry has gained recognition for its quality and craftsmanship, attracting both domestic and international consumers. Furthermore, Zimbabwe has a growing middle-class population with increasing disposable income. This has created a larger consumer base for premium and imported wines, as consumers are willing to spend more on high-quality products. The presence of upscale hotels, restaurants, and wine bars in major cities like Harare and Bulawayo has also contributed to the growth of the wine market, as these establishments offer a wide selection of wines to cater to different tastes and preferences.

Underlying macroeconomic factors: The economic stability and gradual recovery of Zimbabwe's economy have played a significant role in the development of the wine market. As the country's GDP continues to grow, consumers have more purchasing power, allowing them to indulge in luxury products such as wine. Additionally, the government's efforts to promote tourism and attract foreign investment have contributed to the growth of the wine industry, as tourists and expatriates often seek out local wines as part of their cultural experience. In conclusion, the Wine market in Zimbabwe has experienced notable growth due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The increasing interest in wine, particularly red and sparkling varieties, reflects a desire for a more sophisticated lifestyle. The presence of vineyards and wineries in Zimbabwe, along with the country's favorable climate, has allowed for the production of high-quality wines that cater to both domestic and international consumers. The growing middle-class population and improving economy have further fueled the demand for wine, making Zimbabwe an emerging market in the wine industry.

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.