Beer - Azerbaijan

The Beer market in Azerbaijan has been experiencing significant growth in recent years. Customer preferences have shifted towards craft and premium beers, leading to an increase in the consumption of these types of beers. Additionally, the market has been influenced by local special circumstances and underlying macroeconomic factors.

Customer preferences: In Azerbaijan, customer preferences have evolved to favor craft and premium beers. This shift can be attributed to changing consumer tastes and a growing interest in exploring different flavors and styles of beer. Craft breweries have been able to tap into this trend by offering a wide range of unique and high-quality beers. As a result, the demand for craft and premium beers has been steadily increasing in the country.

Trends in the market: One of the key trends in the beer market in Azerbaijan is the rise of craft breweries. These breweries focus on producing small batches of beer using traditional brewing methods and high-quality ingredients. Craft breweries have gained popularity among consumers who are looking for unique and flavorful beers. The market has also seen an increase in the number of imported craft beers, providing consumers with even more options to choose from. Another trend in the market is the growing popularity of non-alcoholic and low-alcohol beers. This can be attributed to changing consumer lifestyles and a greater emphasis on health and wellness. Non-alcoholic and low-alcohol beers offer consumers the opportunity to enjoy the taste of beer without the negative effects of alcohol. As a result, breweries have been introducing more non-alcoholic and low-alcohol options to cater to this demand.

Local special circumstances: Azerbaijan has a rich brewing tradition, and this has contributed to the growth of the beer market in the country. The local beer industry has a strong heritage and has been able to leverage this to attract consumers. Breweries often highlight their traditional brewing methods and use of local ingredients to differentiate themselves in the market. This focus on tradition and local identity has resonated with consumers and has helped to drive the growth of the beer market in Azerbaijan.

Underlying macroeconomic factors: The growth of the beer market in Azerbaijan can also be attributed to underlying macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income. This has allowed consumers to have more purchasing power and to spend more on discretionary items such as beer. Additionally, the tourism industry in Azerbaijan has been growing, attracting visitors from around the world. This has created a demand for a variety of beers, including craft and premium options, to cater to the diverse tastes of tourists. In conclusion, the beer market in Azerbaijan has been developing due to shifting customer preferences towards craft and premium beers, as well as the rise of non-alcoholic and low-alcohol options. Local special circumstances, such as the country's brewing tradition, have also contributed to the growth of the market. Furthermore, underlying macroeconomic factors, such as economic growth and the development of the tourism industry, have played a role in driving the demand for beer in Azerbaijan.

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.