Wine - Kenya

The Wine market in Kenya has been experiencing significant growth in recent years.

Customer preferences: Kenyan consumers have shown an increasing interest in wine, with a growing 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 drinking. There is a growing appreciation for different types and varieties of wine, with consumers becoming more knowledgeable about the various flavors and characteristics. Additionally, there is a trend towards healthier lifestyles, and wine is often seen as a healthier alternative to other alcoholic beverages.

Trends in the market: One of the key trends in the Kenyan wine market is the rising demand for premium and imported wines. As disposable incomes have increased in recent years, consumers are willing to spend more on high-quality wines. This trend is driven by a desire for exclusivity and a preference for wines from well-known wine-producing regions such as France, Italy, and South Africa. There is also a growing interest in organic and sustainable wines, reflecting a global trend towards more environmentally friendly products. Another trend in the market is the increasing availability of wine in retail outlets and online platforms. Previously, wine was primarily sold in upscale hotels and restaurants, but now there are specialized wine shops and online retailers that cater to a wider range of consumers. This has made wine more accessible and convenient for consumers, contributing to the growth of the market.

Local special circumstances: Kenya's wine market is influenced by several local special circumstances. One of these is the country's growing middle class, which has led to an increase in disposable income and a greater willingness to spend on luxury goods, including wine. Additionally, Kenya has a diverse population with different cultural backgrounds, and wine is seen as a way to connect with different cultures and experiences.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the wine market in Kenya. The country's stable economic growth and increasing urbanization have created a favorable environment for the development of the wine industry. Additionally, the government has implemented policies to encourage foreign investment and promote tourism, which has attracted international wine producers and distributors to the Kenyan market. Finally, changing demographics, such as a growing young and urban population, have also played a role in driving the demand for wine. In conclusion, the Wine market in Kenya is experiencing significant growth due to changing consumer preferences, including a growing interest in premium and imported wines, as well as the increasing availability of wine in retail outlets and online platforms. Local special circumstances, such as the country's growing middle class and diverse population, contribute to the market's development. Additionally, favorable macroeconomic factors, including stable economic growth and government policies, have created a conducive environment for the wine industry in Kenya.

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.