Sales of alcoholic drinks continue to be driven by the wide popularity of beer among both local people and tourists. Although a stricter approach is being taken to informal sales of alcohol, the strong tradition for homebrewed beer and artisanal spirits may be difficult to overcome.
During 2021, the Government amended specific excise duty on wine, beer and spirits. The duty rate for spirituous products increased by 20%, while the rate for the wine and beer categories was reduced by 80%.
Alcohol consumption is generally acceptable in Tanzania, especially amongst the younger working population of legal drinking age. It is common for colleagues to go out for drinks after working hours on Fridays and for friends to meet for drinks at the weekends.
The tougher economic conditions that began to emerge in Tanzania during 2016 led to falling disposable income levels for many households, with only modest growth in income levels seen for most since then. Unsurprisingly, this has led to falling consumer confidence, which has in turn been reflected in pressure coming on alcohol consumption.
After several years of improvements made to Tanzania’s intercity roads, the transportation of alcoholic drinks is relatively easy between the country’s main cities. However, this is not the case in rural areas, which are mainly accessible only by dirt roads, making them difficult to reach during rainy seasons.
Both the legal drinking age and legal purchasing age remained at 18 years in Tanzania in 2021. Most producers also feature the warning on packaging: “Not for sale to persons under the age of 18.
Alcoholic drinks are subject to excise duties, import duties (if applicable), and sales tax. The sales tax (VAT) is set at 18% and did not change towards the end of the review period.
Alcoholic drinks is expected to register positive total volume growth over the forecast period, with beer and wine slated for positive volume growth in on-trade and off-trade terms, while spirits is expected to register positive off-trade volume growth as well. Positive growth is set to be underpinned by the recent introduction of electronic tax stamps, as well as increased marketing efforts by key market players.
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Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.See All of Our Definitions
This report originates from Passport, our Alcoholic Drinks research and analysis database.
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