Wine - Algeria

The Wine market in Algeria has been experiencing steady growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Algerian consumers have shown a growing interest in wine, with an increasing number of people incorporating it into their social and cultural activities. Wine has become a popular choice for special occasions and celebrations, as well as for casual gatherings. Algerian consumers are becoming more knowledgeable about different wine varieties and are willing to explore new options. There is a growing demand for both domestic and imported wines, with consumers seeking a wide range of flavors and styles.

Trends in the market: One of the key trends in the Algerian wine market is the rise of domestic wine production. Algerian wineries have been investing in modern technology and techniques to improve the quality of their wines, making them more competitive in the global market. This trend is driven by a combination of factors, including government support for the wine industry and the increasing demand for locally produced wines. Algerian wines are gaining recognition for their unique characteristics and are being exported to other countries. Another trend in the market is the growing popularity of organic and biodynamic wines. Algerian consumers are becoming more health-conscious and are seeking wines that are produced using sustainable and environmentally friendly methods. This trend is in line with global consumer preferences, as more people are opting for organic and natural products. Wine producers in Algeria are responding to this demand by adopting organic and biodynamic farming practices and promoting their wines as being eco-friendly.

Local special circumstances: Algeria has a long history of wine production, dating back to ancient times. The country has a favorable climate for grape cultivation, with a diverse range of terroirs that contribute to the unique characteristics of Algerian wines. The wine industry in Algeria is supported by the government, which provides incentives and subsidies to wine producers. This support has helped to attract investment and promote the growth of the industry.

Underlying macroeconomic factors: The growth of the wine market in Algeria is also influenced by macroeconomic factors. The country has seen steady economic growth in recent years, leading to an increase in disposable income and consumer spending. As a result, Algerian consumers have more purchasing power and are able to afford higher-quality wines. In addition, the tourism industry in Algeria has been growing, attracting international visitors who are interested in experiencing the local culture, including the wine industry. This has created a demand for Algerian wines both domestically and internationally. In conclusion, the Wine market in Algeria is developing due to changing customer preferences, including a growing interest in wine and a demand for a wide range of flavors and styles. The market is also influenced by local special circumstances, such as the long history of wine production in Algeria and government support for the industry. Furthermore, underlying macroeconomic factors, such as economic growth and the growth of the tourism industry, are contributing to the development of the market. Overall, the wine market in Algeria is expected to continue growing in the coming years.

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.