From late 2019 to 2022, Namibia saw a notable increase in alcoholic beverage prices, especially a 74% rise in white spirits attributed to supply chain disruptions. Beer consumption stands at 85 liters per capita, ranking Namibia seventh globally. Alcohol accounts for a significant portion of household expenditure, with regional variations in preferences and spending patterns influenced by income levels and inflation.
Since late 2019, prices for alcoholic beverages in Namibia, particularly white spirits, have surged significantly. White spirits saw a 74% increase, whereas beer prices rose by 26%. The rise in white spirits prices was largely attributed to the Russia-Ukraine war, which disrupted grain supplies essential for vodka and gin production. Other liquors like champagne and whiskey have mirrored beer’s price trends to a lesser extent.
In terms of consumption, Namibia ranks seventh in the world for annual per-capita beer consumption, estimated at 85 liters in 2022. Beer constitutes the second heaviest item in the Namibia Consumer Price Index (NCPI), accounting for 7% of total household expenditure, with all alcoholic beverages combined comprising 10%.
The popularity of alcoholic beverages varies regionally; in northern Namibia, beer and white spirits represent 8.8% and 0.6% of total expenditure, respectively. Zone 3, covering regions such as Erongo and Hardap, favors brandy and whiskey, which respectively contribute 0.7% and 0.5% of expenditures. Additionally, Windhoek exhibits a preference for wine, where 1.7% of total spending is allocated.
Drinking patterns indicate that northern regions are the heaviest consumers of alcohol, devoting 11.8% of their total expenditures on alcoholic products, while the southern regions and Windhoek allocate lower percentages. However, these figures must be contextualized within income levels; residents of Windhoek, having higher incomes, spend a smaller percentage of their income on alcohol compared to those in less affluent areas.
Inflation in Namibia is prompting consumers to consider switching to cheaper options or potentially reducing their alcohol consumption altogether. This shift could substantially impact household budgets, especially in lower-income regions. If you find affordable draught beers for N$20 at your local bar, consider that a fortunate situation amidst rising prices!
The article highlights significant price increases in alcoholic beverages in Namibia due to external factors like the Russia-Ukraine war, alongside high consumption rates. Beer remains a dominant product significantly affecting household expenditure, particularly in northern regions, while the choice of spirits varies across different areas. Income levels play a crucial role in expenditure patterns, influencing how much households allocate to alcoholic beverages. As inflation pressures rise, consumption behaviors may shift towards more affordable options.
Original Source: www.namibian.com.na
