Spirits in Algeria

PRE-COVID-19 PERFORMANCE

Slowing growth due to economic conditions, import complications and rising prices

Spirits continued to develop in 2019 thanks to positive demographics and improving consumer awareness and appreciation of emerging spirits categories. Growth, however, slowed due to the ongoing negative economic conditions, the growing complication of import and logistics procedures combined with further devaluation of the Algerian dinar.

Driven by other blended Scotch whisky, whiskies leads spirits

Whiskies, the leading category in spirits, continued to shape the category in 2019 despite competition from other products such as vodka. Driven by other blended Scotch whisky, whiskies will continue to account for the lion’s share of sales in whiskies and be the fastest-growing category and first choice for most drinkers.

Diageo leads with its wide variety of strong global brands

Diageo Plc maintained its lead in spirits in 2019 due to its wide product variety and in particular the strong popularity amongst Algerian consumers of its best-performing other blended scotch whisky brands Johnnie Walker and J&B. The positive trend recorded by whisky enabled Diageo Plc to consolidate its leading position.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of spirits are expected to fall by 26% in 2020 in light of the impact of COVID-19. This compares to an expected 4% rise forecast for 2020 during research conducted in May 2019, ie before the spread of COVID-19.

Affected products within spirits

The COVID-19 crisis further affected inflation and the devaluation of the Algerian dinar, leading to the rise of the import costs of spirits. The closure of hotels, restaurants and bars during lockdown also significantly affected the category’s performance in 2020.

Recovery and opportunities

Positive demographics and improving consumer awareness and appreciation of different spirits categories is expected to continue, benefiting future sales. However, the predicted growth for spirits is set to be slower than the review period total volume CAGR due to the ongoing negative economic conditions in Algeria, compounded by the COVID-19 pandemic.

Files are delivered directly into your account within a few minutes of purchase.