Wine will respond negatively to the COVID-19 pandemic in 2020 overall as volume sales decline notably. The main reasons for this have been due to lockdown, the closure of the on-trade, and declining purchasing powers.
A significant share of wine players’ turnover is made through the on-trade sector which was lost during the closure of hotels, restaurants and bars amid COVID-19. This lost share was somewhat recovered by the off-trade market, but as not all consumers can easily drink at home and also not all retail outlets were open during the lockdown period, overall growth in 2020 is set to be slower than in previous years.
Wine will continue to be led by the state-owned player SOTRAVIT (formerly ONCV) in 2020 due to its leading position in still light grape wine, the biggest contributor to volume sales of wine in Algeria, and as it accounts for a significant share of local production. SOTRAVIT’s performance has witnessed some fluctuations due to growing competition from imported products, both legal and illegal, and by poor climatic conditions with less rainfall.
Wine will rebound from as soon as 2021 in line with the COVID-19 pandemic coming to an end. However, slower growth is predicted for the forecast period in comparison with the review period.
Over the forecast period, champagne will see the most dynamic growth in volume terms. However, still light grape wine will remain the largest product area.
Sparkling wine will continue to develop in Algeria and become increasingly popular over the forecast period. Growing consumer awareness and expected rising tourism investments will have a positive effect on consumer demand for sparkling wine in 2021 and beyond.
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Understand the latest market trends and future growth opportunities for the Wine industry in Algeria with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Wine research and analysis database.
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