WINE PRODUCERS EYE AFRICA
Young people consider the drink too highbrow
BORDEAUX – For wine and spirits companies looking to expand their businesses, Africa and its growing middle class clamouring for refined tipples is now one of the world’s fastest-growing beverage markets, analysts say.
Wine consumption in Africa is rising five times faster than the global average, according to a study of 24 sub-Saharan African countries released this past week by British wine consultancy IWSR at the world ’ s leading wine fair, Vinexpo.
Africans gulped down a total of 864 million bottles of still light wine in 2013 – a rise of 17.3% in five years.
That remains relatively modest for a continent of 1.1 billion people.
But the market is forecast to grow another 11% by 2018, as lifestyles evolve in the wake of African growth that has outstripped global gross domestic product by nearly three percentage points over the past 15 years.
“More and more Africans have disposable income,” said Daniel Mettyear, who led the International Wine and Spirit Research study.
“The growth is exponential, the demand is there,” agreed Cameroonian importer Felix Kamdem.
Yet despite rising activity driven by a growing African middle class with globalised tastes, the sector ’ s expansion has been limited by obstacles across Africa including high import taxes, complicated customs procedures and corruption, industry experts said.
Analysts frequently cite Nigeria – Africa ’ s most pop- ulous country and biggest economy – and South Africa, as markets with the highest potential for growth.
African urbanites, and youngsters in particular, are increasingly turning to wine as their libation of choice.
“Young people are taking to wine because it ’ s considered a sophisticated product,” Kamdem said. “Drinking wine or spirits has a touch of luxury.”