Wine in Morocco

PRE-COVID-19 PERFORMANCE

Grape production continues to accelerate in Morocco, where red wine remains the most popular wine and on-trade sales benefit mostly from booming tourism in 2019

Red wine continued to drive growth and accounts for the largest percentage of wine produced in Morocco. Trade contacts estimate that red wine comprised approximately 88% of category in 2019, three quarters of which is done off-trade, which allows for a huge opportunity to capture more market share by diversification.

Sparkling wine, notably champagne, continues to gain the most traction in Morocco in 2019

Champagne is still very expensive in Morocco and is considered a luxury product; however, champagne is still very popular in the country as more than 350,000 bottles on average are consumed annually. Demand for champagne, as well as “other” sparkling wine, also is growing.

Domestic producers continue to increase their volume and value shares in 2019, with Les Celliers de Meknes maintaining the top position in wine

Les Celliers de Meknes maintained its lead in 2019, while local wine makers, particularly those covered in the “others” category, continued to see a higher increase in their volume and value shares. Les Celliers has been operating in this product category for a long period of time and succeeded in building a strong and lasting relationship with local consumers.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of wine are expected to fall by 20% in 2020 in light of the impact of COVID-19. This compares to an expected 2% rise forecast for 2020 during research conducted in May 2019, ie before the spread of COVID-19.

Affected products within wine

While on-trade sales saw double-digit on-trade declines in every category, still white wine, vermouth and still rosé wine are set to suffer the worst losses related to loss of tourism momentum and curtailment of social occasions where they are most often consumed. Champagne will fare better in keeping with its rising on-trade growth trend in recent years, whereas consumption of still white wine and vermouth, for example, was declining throughout the review period, a trend that COVID-19 has merely exacerbated.

Recovery and opportunities

Over the forecast period, still red wine is expected to continue leading sales of wine in Morocco in terms of value and volume, as it will likely remain the most popular and preferred type of wine for Moroccans, especially middle-aged people. Despite its expected double-digit volume decline in 2020 and subsequent milder decline in 2021, champagne is set to see growth increase once tourism resumes flourishing in the country post-COVID.

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