Since late 2019, white spirits prices in Namibia have surged by 74%, while beer has increased by 26%, heavily influenced by global events. Namibia ranks seventh globally for beer consumption, with per-capita consumption at 85L in 2022. Expenditure on alcohol varies by region, with northern areas leading in consumption. Inflation pressures are leading to shifts towards more affordable beverages.
The landscape of alcoholic beverages in Namibia has evolved significantly since late 2019, with the average price for white spirits rising by 74% and beer increasing by 26%. Factors such as the supply chain disruptions following the Russia-Ukraine war have exacerbated the inflation of white spirits in 2022, highlighting the vulnerability of input costs for vodka and gin production.
Namibia’s alcohol consumption is notably high, with an estimated annual per-capita beer consumption of 85L in 2022, positioning the country seventh globally. Beer occupies the second-highest weight in the Namibia Consumer Price Index (NCPI), trailing only rent, indicating a substantial contribution of 7% to the total expenditure of households in the reference period of 2009, while overall alcohol consumption accounts for 10% of total spending.
Regional preferences illustrate varied consumption patterns, with beer and white spirits being more prevalent in northern Namibia, contributing 8.8% and 0.6% to total expenditure in that region, respectively. In contrast, brandy and whisky are more popular in zone 3, which encompasses the Erongo, Omaheke, Hardap, and //Kharas regions, where these beverages account for 0.7% and 0.5% of total zone expenditure.
Windhoek demonstrates a distinct trend, dedicating 1.7% of total expenditure to wine. Across the nation, northern regions emerge as the highest consumers of alcohol, allocating 11.8% of their total spending on alcoholic beverages, compared to 10.4% in the south, the coast, and Omaheke, and only 7.9% in Windhoek. Higher income levels in Windhoek may skew the proportional expenditure data, underscoring the necessity of considering income disparities across regions.
As moderate inflation pressures households, many consumers may be prompted to transition to more affordable alcoholic options, or reduce their consumption altogether. For those enjoying the price of N$20 for a draught at local bars, it may be prudent to appreciate this temporary affordability.
The analysis of alcohol consumption trends in Namibia reveals significant price increases, particularly for white spirits influenced by global events, and a high per-capita beer consumption, reflecting a strong cultural attachment to these beverages. Regional disparities in expenditure patterns further highlight the complexity of alcohol consumption across different demographics, especially considering the impact of income levels. As inflation continues to affect household budgets, consumption habits may shift towards more affordable options.
Original Source: www.namibian.com.na
