Wine consumption increases in African markets

Africa is one of the biggest opportunities for long-term growth, according to IWSR research commissioned by Vinexpo.

The improving economic and political conditions, significant outside investment in infrastructure and minerals and a better internal organisational structure have meant that Africa’s key markets now present one of the world’s biggest opportunities for medium- and long-term growth.

Several factors stand out in highlighting the immense potential waiting to be realised in the African continent: favourable demographics, accelerating urbanization and growing middle class.

Consumer spending in Africa is expected to reach US$1.4 trillion by 2020. More and more Africans are enjoying genuine disposable income for the first time. However, in such a complicated, informal and often murky business environment devoid of reliable market information, tracking and identifying such opportunities for growth is demanding to say the least.

African wine consumption is increasing five times faster than the average world consumption.

Total African wine consumption reached 72 million 9-litre cases in 2013, equivalent to 864 million bottles, in 2009, an increase of 17.3% compared to 2009. Between 2014 and 2018, the Vinexpo/IWSR study expects African wine consumption to grow by a further 11%, reaching 81.8 million 9-litre cases by the end of the period. In 10 years, African wine consumption will have increased by 33%, compared to the world average annual growth rate of 6.0%.

The consumption of white wines, which increased by 3% between 2009 and 2013, reached 31.8 million 9-litre cases in 2013. In the same period, the consumption of red wine increased by 28% to reach 32 million 9-litre cases in 2013. Despite a 92% growth between 2009 and 2013, the consumption of rosé wines is still marginal (1.7 m) cases.

27 January 2015 - Felicity Murray The Drinks Report, editor