Alcoholic drinks in 2024: The big picture
Alcoholic drinks in Ethiopia faced a slight decline in total consumption in 2024, shaped by rising prices and shifting economic conditions. The overall contraction was largely driven by a series of fiscal and structural developments, including higher excise taxes on alcohol, a widening gap in the foreign exchange rate, and the impact of urban redevelopment initiatives that resulted in the demolition of bars and restaurants in key hospitality corridors. These factors combined to limit both supply and affordability, particularly in regions traditionally associated with high beer consumption.
2024 key trends
Beer remained the largest category within alcoholic drinks in Ethiopia in 2024, although it faced notable headwinds in both volume and value terms. The dominant position of beer in the formal market came under increasing pressure due to inflationary effects and the rising popularity of alternative options such as hard seltzers and traditional drinks. Arada, a flavoured hard seltzer brand that gained strong traction among female consumers, notably challenged beer’s dominance. At the same time, a sharp price increase – reportedly in the range of 35% over the year – led many price-sensitive consumers to turn toward more affordable, traditional beverages. Structural changes within Addis Ababa also played a role. The city’s Corridor Development initiative, aimed at urban renewal through expanded infrastructure and pedestrian spaces, resulted in the demolition or relocation of several key hospitality areas known for high beer and wine consumption. This included parts of Bole, Kazanchis, and Bisrate Gabriel, where the closure of butcheries and drinking establishments disrupted longstanding community patterns of on-trade consumption and weakened the social networks that supported frequent alcohol use in these zones.
Competitive landscape
Heineken remained the leading company in Ethiopia’s alcoholic drinks industry in 2024, maintaining its dominance in the beer segment with a strong volume share. The company produces well-established brands such as Walia, Bedele, and Harar, and saw a stable performance throughout the year. Heineken’s leadership was further consolidated following its acquisition of Komari Beverages in October 2024, the producer of the Arada hard seltzer brand. This move expanded Heineken’s portfolio beyond traditional beer offerings and positioned the company at the forefront of innovation in Ethiopia’s evolving alcoholic drinks market. In the beer industry, Heineken continues to compete closely with Saint George Beer, while Dashen Breweries, Habesha Breweries, and Anbessa Brewery make up the next tier of competitors. In the spirits segment, National Alcohol and Liquor Factory held the largest share, followed by Balezaf Alcoholic Liquor Factory, with Marathon Spirits and VIV Beverages emerging as noteworthy local producers. Meanwhile, Awash Wine led the wine segment, ahead of Castle Winery, benefiting from the widespread popularity of its locally produced wine-based cocktail, Tekesheno.
Retail developments
Specialist alcohol retailers and wholesalers remained the leading distribution channel for alcoholic drinks in Ethiopia in 2024, holding the largest share of volume sales. This channel’s position was bolstered by its central role in both on-trade and off-trade sales. Most beer and spirits are routed through specialist sellers, who serve as intermediaries between producers and both individual consumers and on-trade establishments. While beer is primarily consumed in bars and butcheries, spirits – particularly traditional domestic varieties – are also popular in small-scale local bars. Imported spirits, in contrast, are typically sold for consumption in butcheries and nightclubs, which remain key venues for on-trade sales among urban and affluent consumers. Traditional grocery retailers, known locally as souqs, do not typically stock alcoholic beverages due to religious reasons, as many are owned by members of the Muslim community. This further reinforces the importance of specialist sellers in distributing alcohol, especially in urban neighbourhoods where demand remains strong despite economic constraints.
On-trade vs off-trade split
A clear transition from on-trade to off-trade consumption was observed in Ethiopia’s alcoholic drinks landscape in 2024. This shift has been primarily driven by rising inflation, ongoing currency depreciation, and the increasingly prohibitive impact of excise taxes, which have reduced disposable income and consumer spending power. As a result, more consumers are opting to purchase alcoholic beverages for home consumption, particularly beer and traditional spirits, which are often cheaper when bought off-trade. In urban centres like Addis Ababa, the redevelopment of former high-consumption corridors – such as Kazanchis, Bole, and Bisrate Gabriel – has also played a role. The removal or relocation of bars, butcheries, and nightclubs from these areas has significantly limited access to familiar on-trade venues, encouraging a shift toward at-home drinking through neighbourhood-based alcohol specialists or informal retail.
What next for alcoholic drinks?
Volume sales of alcoholic drinks are set to remain largely flat over the forecast period, with any potential growth likely to be constrained by ongoing economic pressures. Although the population is projected to grow and urbanisation is expected to increase, these underlying demographic factors may not be sufficient to offset the dampening effects of inflation and high taxation. While demand for alcoholic beverages will likely remain robust, rising prices and diminished purchasing power are expected to drive continued downtrading. Consumers are anticipated to switch from imported to domestic spirits and increasingly turn to traditional alcoholic drinks such as Tej, Tela, and Areqe, which are not only cheaper but deeply embedded in local culture. At the same time, imported spirits are forecast to lose further ground, as affordability worsens and domestic brands improve in quality and image, especially those positioned as export-standard products.
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Overview:
Understand the latest market trends and future growth opportunities for the Alcoholic Drinks industry in Ethiopia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Beer
- Wine
- Spirits
- Cider and Perry
- RTDs
If you're in the Alcoholic Drinks industry in Ethiopia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty
The Alcoholic Drinks in Ethiopia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Alcoholic Drinks in Ethiopia?
- Where is consumer demand for Alcoholic Drinks focussed?
- Which is being consumed more; beer, wine or spirits?
- Where is demand growing? Stagnating?
- How is the operating environment for alcoholic drinks changing?
- Which are the leading brands in Ethiopia?
- How are products distributed in Ethiopia?
- What are the key trends in new product development?
- Do consumers want value for money or added value?
- How will macroeconomic context and shifting cultural values shape future growth?
- How will COVID-19 and recession impact the alcoholic drinks industry?
- Where is future growth expected to be most dynamic?
Alcoholic Drinks in Ethiopia
Alcoholic drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
On-trade vs off-trade split
What next for alcoholic drinks?
Legislation
Legal purchasing age and legal drinking age
Drink driving
Advertising
Smoking ban
Opening hours
On-trade establishments
Taxation and Duty Levies
Operating Environment
Contraband/parallel trade
Duty free
Cross-border/private imports
Key New Product Launches
DISCLAIMER
Key Data Findings
2024 Developments
Redevelopment, tax pressures and affordability challenges reshape consumption
Heineken leads as market prepares for new entrants and strategic shifts
On-trade remains dominant despite cost and security constraints
Prospects and Opportunities
Affordability constraints and regional instability to limit growth potential
Modest off-trade expansion and market consolidation expected
Product and distribution innovation to accelerate among brewers
Category Data
Key Data Findings
2024 Developments
Consumption of wine expands as local preferences evolve and affordability drives choices
Product innovation strengthens consumer engagement and cultural relevance
Off-trade and digital distribution channels expand reach amid shifting purchasing behaviours
Prospects and Opportunities
Local wine to drive growth as Tekesheno sustains cultural demand
Innovation expected to remain limited amid market consolidation
Digital platforms and retail partnerships to shape distribution landscape
Category Data
Key Data Findings
2024 Developments
Rising costs reshape consumer choices and shift demand to domestic and traditional spirits
Domestic players gain ground as imported brands face affordability challenges
Distribution adapts to regulatory pressures and evolving consumption habits
Prospects and Opportunities
Ongoing economic pressure likely to suppress consumption and drive informal market growth
Consumer downtrading to continue as excise pressure intensifies
Innovation expected in premium domestic spirits and traditional drink formalisation
Category Data
2024 Developments
Prospects and Opportunities
Category Data
2024 Developments
Prospects and Opportunities
Category Data
The following categories and subcategories are included:
Alcoholic Drinks
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- Ale
- Sorghum
- Weissbier/Weizen/Wheat Beer
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- Flavoured/Mixed Lager
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- Domestic Premium Lager
- Imported Premium Lager
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- Domestic Mid-Priced Lager
- Imported Mid-Priced Lager
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- Domestic Economy Lager
- Imported Economy Lager
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- Domestic Premium Lager
- Domestic Mid-Priced Lager
- Domestic Economy Lager
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- Imported Premium Lager
- Imported Mid-Priced Lager
- Imported Economy Lager
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- Low Alcohol Beer
- Non Alcoholic Beer
- Stout
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- Regular Cider/Perry
- Non Alcoholic Cider/Perry
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- Malt-based RTDs
- Spirit-based RTDs
- Wine-based RTDs
- Other RTDs
- Non Alcoholic RTDs
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- Brandy
- Cognac
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- Bitters
- Cream-based Liqueurs
- Other Liqueurs
- Non Alcoholic Spirits
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- Prestige Dark Rum
- Ultra Premium Dark Rum
- Super Premium Dark Rum
- Premium Dark Rum
- Standard Dark Rum
- Economy Dark Rum
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- Prestige White Rum
- Ultra Premium White Rum
- Super Premium White Rum
- Premium White Rum
- Standard White Rum
- Economy White Rum
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- Tequila (and Mezcal)
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- Bourbon/Other US Whiskey
- Canadian Whisky
- Irish Whiskey
- Japanese Whisky
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- Blended Malt Scotch Whisky
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- Prestige Other Blended Scotch Whisky
- Ultra Premium Other Blended Scotch Whisky
- Super Premium Other Blended Scotch Whisky
- Premium Other Blended Scotch Whisky
- Standard Other Blended Scotch Whisky
- Economy Other Blended Scotch Whisky
- Single Grain Scotch Whisky
- Single Malt Scotch Whisky
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- Other Whiskies
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- Prestige English Gin
- Ultra Premium English Gin
- Super Premium English Gin
- Premium English Gin
- Standard English Gin
- Economy English Gin
- Dutch Gin
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- Prestige Vodka
- Ultra Premium Vodka
- Super Premium Vodka
- Premium Vodka
- Standard Vodka
- Economy Vodka
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- Absinthe
- Ad-Mix Brandy
- Ad-Mix Gin
- Ad-Mix Rum
- Ad-Mix Vodka
- Ad-Mix Whisky
- Aguardente/Aguardiente
- Aguardiente De Caña
- Akvavit/Aquavit
- Aniseed-Flavoured Spirits
- Borovicka
- Boukha
- Brandy Type Distilled Spirits
- Cachaça
- Calvados
- Cane
- Chacha
- Charanda
- Chinese Herbal Spirits
- Chinese Spirits
- Cut Brandy
- Destilados De Agave
- Distilled Fruit Spirits
- Domestic Brandy
- Domestic Rum
- Doppelkorn
- Economy Chinese Spirits
- Flavoured Spirits
- Flavoured Vodka-based Drinks
- Fynbos gin/Local Gin
- Gin-flavoured spirits
- Goldbrand/Goldkrone
- Grappa
- Grappamiel
- Guaro
- Kirsch
- Komovica
- Korn
- Lambanog
- Limoncello
- Local White Spirits
- Lower Mid-Range Chinese Spirits
- Lozovaca
- Maesilju
- Mahia Rabi Amrane
- Mead
- Mixed Spirits
- Nalivka/Nalewka
- Nastoyka
- National Specialities
- Obstbrände
- Ouzo
- Pacharán
- Palinca/Pálinka
- Pear and Apple Distillates
- Pisco
- Premium Chinese Spirits
- Prune
- Punsch
- Rachiu/Rakija
- Rum-Flavoured Spirits
- Samane
- Sambuca
- Samsu
- Schnapps
- Shochu/Soju
- Singani
- Sljivovica/Slivovice
- Steinhäeger
- Strong African Spirits
- Super Premium Chinese Spirits
- Sura Khao
- Tequila Flavoured Spirits
- Travarica
- Tsipouro
- Upper Mid-Range Chinese Spirits
- Vieux
- Viina
- Vodka Type Distilled Spirits
- Other Distilled Beverages
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- Port
- Sherry
- Vermouth
- Other Fortified Wine
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- Apple Wine
- Bokbunjaju
- Cheongju
- Chinese Wine
- Economy Rice Wine
- Fortified Fruit Wine
- Fruit and Berry Wine
- Fruit and Herbal Wine
- Fruit and Honey based Wine
- Fruit Wine
- Lower Mid-Range Rice Wine
- Non-Grape Dessert Wine
- Premium Rice Wine
- Sake
- Takju
- Upper Mid-Range Rice Wine
- Yakju
- Yellow Wine
- Other Non-Grape Wine
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- Champagne
- Other Sparkling Wine
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- Still Red Wine
- Still Rosé Wine
- Still White Wine
- Non Alcoholic Wine
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
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This report originates from Passport, our Alcoholic Drinks research and analysis database.
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