Alcoholic Drinks - Zambia

The Alcoholic Drinks market in Zambia has been experiencing steady growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Zambian consumers have shown a growing preference for alcoholic beverages, particularly beer and spirits. This can be attributed to factors such as increasing disposable income, urbanization, and changing lifestyles. Beer, in particular, is a popular choice among consumers, with a wide range of local and international brands available in the market. Additionally, there is a growing demand for premium and craft beers, as consumers seek unique and high-quality products.

Trends in the market: One of the key trends in the Alcoholic Drinks market in Zambia is the rise of local breweries and distilleries. These companies have been able to cater to the demand for unique and traditional alcoholic beverages, offering consumers a taste of authentic Zambian flavors. This trend is driven by the desire for locally-produced products and the support for small-scale businesses. Another trend in the market is the increasing popularity of flavored alcoholic beverages. This includes products such as flavored beers, ciders, and spirits. These beverages appeal to younger consumers who are looking for innovative and refreshing options. The introduction of new flavors and variants has further fueled the growth of this segment in the market.

Local special circumstances: Zambia has a vibrant nightlife culture, with a growing number of bars, clubs, and restaurants catering to the demand for alcoholic beverages. This has created a favorable environment for the growth of the Alcoholic Drinks market, as consumers have more opportunities to socialize and enjoy their favorite drinks. In addition, the tourism industry in Zambia has been growing steadily, attracting both domestic and international tourists. This has created a significant market for alcoholic beverages, as tourists often seek to experience the local culture and flavors through food and drinks.

Underlying macroeconomic factors: The steady economic growth in Zambia has contributed to the growth of the Alcoholic Drinks market. Rising incomes and improved living standards have increased the affordability of alcoholic beverages for a larger segment of the population. This, in turn, has led to increased consumption and demand for a variety of alcoholic drinks. Furthermore, the government of Zambia has implemented policies to promote the production and consumption of locally-produced goods, including alcoholic beverages. This has created a supportive regulatory environment for local breweries and distilleries, leading to increased investment and innovation in the market. In conclusion, the Alcoholic Drinks market in Zambia is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for alcoholic beverages, particularly beer and spirits, is driven by factors such as increasing disposable income, urbanization, and changing lifestyles. The rise of local breweries and distilleries, the popularity of flavored alcoholic beverages, the vibrant nightlife culture, and the growing tourism industry are all contributing to the growth of the market. Additionally, the steady economic growth and supportive government policies are creating a favorable environment for the Alcoholic Drinks market in Zambia.

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.