Wine - Lesotho

The Wine market in Lesotho is developing at a steady pace, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Lesotho has seen a growing interest in wine consumption among its population. Wine is increasingly becoming a popular choice for social gatherings and special occasions. This can be attributed to the rising influence of Western culture and the desire for a more sophisticated and cosmopolitan lifestyle. As a result, consumers in Lesotho are seeking out a wider variety of wines, including both red and white varieties, as well as sparkling wines.

Trends in the market: One of the key trends in the wine market in Lesotho is the increasing demand for organic and natural wines. Consumers are becoming more conscious about their health and the environment, and are therefore opting for wines that are produced using sustainable and organic methods. This trend is in line with global market trends, as consumers worldwide are showing a growing preference for organic and natural products. Another trend that is gaining traction in the wine market in Lesotho is the rise of wine tourism. Wine enthusiasts are increasingly seeking out unique wine experiences, such as visiting vineyards and participating in wine tastings. This trend is driven by the desire for experiential travel and the opportunity to learn about the wine-making process firsthand. As a result, wine producers in Lesotho are investing in wine tourism infrastructure to cater to this growing demand.

Local special circumstances: Lesotho's unique geography and climate present both challenges and opportunities for the wine market. The country's high altitude and cool climate make it suitable for the cultivation of certain grape varieties, particularly those used in sparkling wines. This has led to the emergence of a small but thriving wine industry in Lesotho, with local producers gaining recognition for their high-quality sparkling wines. However, Lesotho's landlocked location poses logistical challenges for the wine market. Importing wines from other countries can be costly and time-consuming, which can affect the availability and affordability of certain wine varieties. This has prompted some local entrepreneurs to invest in vineyards and wineries in Lesotho, in order to produce wines that are tailored to the local market.

Underlying macroeconomic factors: The economic growth and increasing disposable income in Lesotho have contributed to the development of the wine market. As consumers have more purchasing power, they are able to afford higher-quality wines and explore different options. Additionally, the growing tourism industry in Lesotho has created a demand for wines from both domestic and international tourists, further driving the growth of the market. In conclusion, the wine market in Lesotho is evolving to meet the changing preferences of consumers. The demand for a wider variety of wines, including organic and natural options, is driving the market forward. The rise of wine tourism and the unique geography of Lesotho are also contributing to the growth of the market. With the country's economic growth and increasing disposable income, the wine market in Lesotho is expected to continue developing in the coming years.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.