Executive Summary

Jul 2019
PROSPECTS
Spirits is set to grow as players race to popularise their brands

Spirits is set to record strong growth in the forecast period, driven mainly by higher consumer spending on leisure and entertainment, which mainly consists of social gatherings in bars and pubs. Growing urbanisation and the rising number of middle-income consumers are set to boost volume and value sales.

Internet retailing is set to boost the variety and availability of spirits

The proliferation of online retailers such as Foodplus, Jumia, Nairobi Drinks, Soys Kenya, Dial-a-drink, Chupa Chap, Oaks & Corks and Drinkshunt is set to provide consumers not only with product variety and increased availability, but also convenience through free delivery and online payment. During 2018, East African Breweries partnered with such online shops to popularise its brands amongst the growing number of tech-savvy consumers who prefer online purchasing.

The intensification of marketing and promotional campaigns is expected

Manufacturers and distributors are expected to focus on widening their distribution to increase their shares in spirits. As such, brand owners are anticipated to heighten their marketing and promotional activities to create more awareness and inform consumers about their product superiority.

COMPETITIVE LANDSCAPE
Local brands lead, whilst global brands expand their footprints

Domestic brands outperformed international brands in 2018, as domestic spirits production remained relatively high. During the review period, local players increased their production capacity through the expansion of their production lines.

Pricing and positioning are differentiators of premium and standard brands

Product pricing is the main differentiator between premium and economy brands. Premium products usually carry a higher price tag and are retailed solely through upmarket modern retail outlets, pubs and bars.

Counterfeit brands pose a major health and financial risk

The increasing penetration of counterfeit products poses a major threat to the growth of spirits in Kenya. As the prices of genuine products continue to rise due the increase in excise duty on alcoholic drinks, as well as the rising cost of living, these products are becoming increasingly unaffordable for most low-income consumers.

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Spirits in Kenya

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Overview

Discover the latest market trends and uncover sources of future market growth for the Spirits industry in Kenya with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Spirits industry in Kenya, our research will save you time and money while empowering you to make informed, profitable decisions.

The Spirits in Kenya market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market volume shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Spirits in Kenya?
  • What are the major brands in Kenya?
  • Are consumers switching from international spirits to ‘cheaper’ local spirits as consumer spending is being squeezed?
  • What is the most popular price point for blended Scotch; super-premium, premium, standard or economy and has the recession resulted in a switch?
  • How do premium vs standard vs economy brands compete for sales?
  • What are the key flavours in vodka?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Alcoholic Drinks market research database.

Spirits in Kenya - Category analysis

HEADLINES

PROSPECTS

Spirits is set to grow as players race to popularise their brands
Internet retailing is set to boost the variety and availability of spirits
The intensification of marketing and promotional campaigns is expected

COMPETITIVE LANDSCAPE

Local brands lead, whilst global brands expand their footprints
Pricing and positioning are differentiators of premium and standard brands
Counterfeit brands pose a major health and financial risk

CATEGORY DATA

Table 1 Sales of Spirits by Category: Total Volume 2013-2018
Table 2 Sales of Spirits by Category: Total Value 2013-2018
Table 3 Sales of Spirits by Category: % Total Volume Growth 2013-2018
Table 4 Sales of Spirits by Category: % Total Value Growth 2013-2018
Table 5 Sales of Spirits by Off-trade vs On-trade: Volume 2013-2018
Table 6 Sales of Spirits by Off-trade vs On-trade: Value 2013-2018
Table 7 Sales of Spirits by Off-trade vs On-trade: % Volume Growth 2013-2018
Table 8 Sales of Spirits by Off-trade vs On-trade: % Value Growth 2013-2018
Table 9 GBO Company Shares of Spirits: % Total Volume 2014-2018
Table 10 NBO Company Shares of Spirits: % Total Volume 2014-2018
Table 11 LBN Brand Shares of Spirits: % Total Volume 2015-2018
Table 12 Forecast Sales of Spirits by Category: Total Volume 2018-2023
Table 13 Forecast Sales of Spirits by Category: Total Value 2018-2023
Table 14 Forecast Sales of Spirits by Category: % Total Volume Growth 2018-2023
Table 15 Forecast Sales of Spirits by Category: % Total Value Growth 2018-2023

Alcoholic Drinks in Kenya - Industry Overview

EXECUTIVE SUMMARY

A positive performance for alcoholic drinks
Manufacturers focus on expanding due to increasing demand
East African Breweries maintains its lead in alcoholic drinks
The increase in on-trade outlets and internet retailing boost sales
Growth is expected over the forecast period

MARKET BACKGROUND

Legislation
Legal purchasing age and legal drinking age
Drink-driving
Advertising
Smoking ban
Opening hours
On-trade establishments

TAXATION AND DUTY LEVIES

Summary 1 Taxation and Duty Levies on Alcoholic Drinks 2018

OPERATING ENVIRONMENT

Contraband/parallel trade
Duty free
Cross-border/private imports

KEY NEW PRODUCT LAUNCHES

Outlook

MARKET INDICATORS

Table 16 Retail Consumer Expenditure on Alcoholic Drinks 2013-2018

MARKET DATA

Table 17 Sales of Alcoholic Drinks by Category: Total Volume 2013-2018
Table 18 Sales of Alcoholic Drinks by Category: Total Value 2013-2018
Table 19 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2013-2018
Table 20 Sales of Alcoholic Drinks by Category: % Total Value Growth 2013-2018
Table 21 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Volume 2017
Table 22 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value 2017
Table 23 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Volume 2017
Table 24 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Value 2017
Table 25 GBO Company Shares of Alcoholic Drinks: % Total Volume 2014-2018
Table 26 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2013-2018
Table 27 Distribution of Alcoholic Drinks by Format and by Category: % Off-trade Volume 2018
Table 28 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2018-2023
Table 29 Forecast Sales of Alcoholic Drinks by Category: Total Value 2018-2023
Table 30 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2018-2023
Table 31 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2018-2023

DEFINITIONS

SOURCES

Summary 2 Research Sources