Beer - Czechia

The Beer market in Czechia has been experiencing significant growth in recent years.

Customer preferences: Czechia has a long-standing beer culture, with a strong tradition of brewing and consuming beer. Beer is deeply ingrained in the Czech culture and is considered a national drink. Czechs have a high per capita beer consumption, and they take pride in their local breweries and traditional brewing methods. The preference for beer over other alcoholic beverages is deeply rooted in the Czech society.

Trends in the market: One of the key trends in the Czech beer market is the growing popularity of craft beer. Craft breweries have been gaining traction in recent years, offering consumers a wide variety of unique and flavorful beers. This trend is driven by the increasing demand for quality and artisanal products, as well as the desire for more diverse and innovative beer options. Craft beer has become a niche market segment, attracting beer enthusiasts and connoisseurs who are willing to pay a premium for high-quality and distinctive brews. Another trend in the Czech beer market is the rising demand for low-alcohol and non-alcoholic beers. Health-conscious consumers are increasingly seeking alternatives to traditional alcoholic beverages, and breweries have responded by developing a range of low-alcohol and non-alcoholic beer options. These products appeal to consumers who want to enjoy the taste of beer without the effects of alcohol, and they are particularly popular among younger consumers and those who are driving or participating in sports activities.

Local special circumstances: Czechia has a rich brewing heritage and is known for its high-quality beer. The country has a large number of breweries, both large and small, producing a wide range of beer styles. Czech beer is renowned for its excellent quality and traditional brewing techniques, such as the use of Czech hops and bottom-fermenting yeast. The local beer culture and the pride associated with Czech beer contribute to the strong demand for beer in the country.

Underlying macroeconomic factors: The Czech economy has been performing well in recent years, with steady economic growth and low unemployment rates. This has contributed to increased consumer spending power and a higher disposable income, which in turn has led to greater consumption of beer. The tourism industry is also a significant driver of the beer market in Czechia, as the country attracts a large number of international tourists who are eager to experience the local beer culture. In conclusion, the Beer market in Czechia is thriving due to the strong customer preference for beer, the growing popularity of craft beer, the increasing demand for low-alcohol and non-alcoholic beers, the rich brewing heritage and local special circumstances, and the favorable macroeconomic factors.

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.