Wine - Malawi

Malawi, a landlocked country in Southeast Africa, has seen a steady development in its wine market in recent years. Customer preferences, local special circumstances, and underlying macroeconomic factors have all contributed to the growth and trends in this market. Customer preferences in Malawi have shifted towards wine as a popular choice of alcoholic beverage. Wine is often seen as a sophisticated and elegant drink, appealing to a growing middle class in the country. As disposable incomes increase and lifestyles change, consumers are seeking new experiences and are willing to spend more on quality products. Wine, with its variety of flavors and aromas, provides an opportunity for consumers to explore different tastes and enjoy a more refined drinking experience. Trends in the wine market in Malawi reflect global and regional patterns. One notable trend is the increasing demand for imported wines. Malawian consumers are becoming more knowledgeable about different wine regions and grape varieties, and they are seeking out international brands that offer a wide range of choices. This trend is supported by the growing availability of imported wines in local supermarkets and specialty wine shops, as well as the expansion of online platforms for purchasing wine. Another trend in the market is the rise of domestic wine production. Malawi has a favorable climate for grape cultivation, and local wineries are taking advantage of this by producing their own wines. Domestic wines are gaining recognition for their unique flavors and are becoming increasingly popular among consumers who appreciate locally sourced products. This trend is also driven by the desire to support local businesses and promote the country's wine industry. Local special circumstances play a role in shaping the wine market in Malawi. The country's tourism industry, with its focus on wildlife and nature, attracts a significant number of international visitors. These tourists often seek out local wines as a way to experience the flavors of the region. As a result, there is a growing demand for wines that are specifically marketed to tourists, such as those with labels highlighting Malawi's natural beauty and cultural heritage. Underlying macroeconomic factors have also contributed to the development of the wine market in Malawi. Economic stability and a growing middle class have provided consumers with more purchasing power, allowing them to afford higher-quality wines. Additionally, government policies and initiatives to promote the country's agricultural sector have supported the growth of domestic wine production, creating opportunities for local wineries to thrive. In conclusion, the wine market in Malawi is developing due to changing customer preferences, the influence of global and regional trends, local special circumstances, and underlying macroeconomic factors. As consumers become more discerning and adventurous in their choices, the demand for both imported and domestic wines is expected to continue to grow. With its favorable climate and unique offerings, Malawi's wine industry has the potential to further expand and contribute to the country's economy.

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.