According to Kasi global consumer sentiment index, consumer outlook stabilized towards the end of 2022 with +13 points. In Ivory Coast there was a 12-point increase while in Kenya there was a three-point increase. While Ivory Coast seems to have recovered from inflation faster, Kenya still lags as its index of consumer sentiment is quite low (+3).
Consumer sentiment impacts purchase behavior and spending habits. Our retail demand index measures consumer demand for retail category and provides insights on how consumer habits impact demand for various categories. The index ranges from + 0.25 to -0.25. An index level close to 0.25 means demand is high as more consumers are looking to purchase while an index level close to -0.25 means demand is low. The average retail demand index for alcoholic beverages in Ivory Coast was 0.09 while in Kenya it was 0.04.
Wine and RTDs drove demand for alcohol in Ivory Coast
Alcohol demand in Ivory Coast is mostly driven by wine and ready to drink alcoholic beverages (RTDs) at 0.13 and 0.11 respectively. The consumer segment driving wine demand are male, gen Xers.
On the other hand, females drive RTD demand at 0.14 followed by millennials at 0.12. The drink is popular with working class women majorly because they find them convenient and healthy as they try to balance work, family, and social responsibilities.
Only Baby Boomers driving alcohol demand in Kenya
Though demand for alcoholic beverages in the Kenyan market is low, there is less fragmentation between various categories. Competition between alcohol brands in Kenya is quite high as they strive to capture market share. According to Kasi retail index, wine is leading at 0.047 followed by whisky at 0.044, beer at 0.043 while vodka lags at 0.042.
When it comes to the consumer segment driving demand for both wine and whisky, Baby Boomers take the lead at 0.069 and 0.082, respectively.
For alcohol brands to win big in Ivory Coast and Kenya, there is need to improve market share.
To capture market share in both countries, alcohol brands need to raise awareness among all consumer segments. When it comes to information sources, Baby Boomers and Gen Xers prefer magazine ads, while Millennials and Gen Zers prefer social media posts and TikTok. If alcohol brands wish to increase their market share, they should investigate these avenues.
The competition between alcohol brands in Kenya is likely to continue as the economy grows. As brands continue to invest in marketing, product development, and distribution, it is likely that we will see more new brands entering the market and more established brands trying to protect their market share. The alcohol industry, as one of the ‘discretionary’ goods, should monitor market movements. Given the steady rate of inflation and changing consumer behavior, it is critical for these businesses to keep up with trends and watch market movements.
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