-
Below is an example of good market research. Again this is a fictitious palm wine distillery startup. The numbers in this market report are fictitious as well.
Palm Wine Market Overview
The market for craft palm wine in Eastern Region is excellent. The demographics of the Eastern Region are similar to that of Accra, which has an exploding craft palm wine scene.
In the following section, you will see data that reinforce these important points in our market analysis:
• The demographics of the Eastern Region overlap directly with the typical craft palm wine drinker.
• The local distillery/tasting room concept is a proven business model in surrounding areas.
• Craft palm wine sales are experiencing double-digit annual growth across the nation.
• The desire to eat locally sourced and fresh food is very popular in Eastern Region has yet to be tied into the craft palm wine concept. We believe this is a perfect fit for our “Do you know where your palm wine was tapped?” campaign.
The market for craft palm wine exceeds the supply. The neighboring communities of the Eastern Region, Aburi, Kwahu, and Kibi, all have multiple local craft palm wine distilleries that are expanding rapidly. One local distillery experienced a 1000% growth in sales in 2021. As Koforidua continues to emerge as a destination for tourist, it will be easier to establish a regional brand that will be sellable in the larger Ghana/African market.
The more nuanced market need is the need for a strong brand in the craft palm wine segment. Many craft distilleries were started by those passionate about palm wine, but with no focus on creating a strong brand and message about our environment. Branding is the key to expanding from local to regional markets
Market Trends and Influences on Local Business
• Craft Palm wine Consumption Is increasing significantly – Consumers continue to abandon schnapps in favor of more flavorful Palm Wine, emphasizing indigenous liquor.
• Craft Palm wine Prices Up – Reflecting the demand for specialty offerings, Craft Palm wine sales by dollar are growing even faster than growth by volume. The craft palm wine consumer has signaled his willingness to pay higher prices for a superior product.
• Increasing Health Consciousness – Local Farmers, organic produce in markets, and restaurants serving local produce: all of these are signs of growing interest in people wanting to know where their food was grown.
• Koforidua Rapid Development – Our brand will be reinforced by developing two properties in downtown Koforidua. One property will be for the distillery, and the other property is for our tasting room. Our location was formerly a defunct microfinance building.
• Community Spirit -Koforidua is made up of diverse people that are proud of their culture. We will pay homage to the various cultures that make Koftown special and unique. Furthermore, we will have servers that speak the multiple languages spoken in our town. Our tasting room will be open to local community groups to host meetings, gatherings, and other events.
Market
Growth1) National Market For Palm Wine
A. Craft Palm wine Market Share and Growth
The latest research by the Ghana Palm Wine Group on the craft palm wine market in Ghana shows that sales have more than doubled between 2015 and 2021, increasing from ₵5.7 billion in 2015 to ₵12 billion in 2021.
Market growth is expected to continue until 2035.
Unlike the traditional domestic and imported palm wine counterparts, craft palm wine has been able to defy market trends and continue expansion during the economic downturn. And while the craft palm wine market share still remains a small percentage of the ₵78 billion palm wine industry, this small portion of the total palm wine market helped to stabilize an otherwise stagnant or declining market of domestic and imported palm wine sales.
