Beer - Lithuania

The Beer market in Lithuania has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Lithuanian consumers have shown a strong preference for locally produced beer, with a growing interest in craft and specialty beers. This shift in preference can be attributed to a desire for unique flavors and higher quality products. Additionally, there has been a growing interest in low-alcohol and non-alcoholic beers, as health and wellness concerns become more prevalent among consumers.

Trends in the market: One of the key trends in the Lithuanian beer market is the rise of microbreweries and craft beer production. These smaller-scale breweries offer a wide variety of unique and innovative beer flavors, appealing to consumers who are looking for something different from the traditional mass-produced beers. This trend is also fueled by the growing popularity of beer tourism, with visitors seeking out local breweries and beer festivals. Another trend in the market is the increasing popularity of online beer sales and home delivery services. This has been particularly evident during the COVID-19 pandemic, as consumers turned to online platforms to purchase their favorite beers while adhering to social distancing measures. This trend is expected to continue even after the pandemic, as consumers appreciate the convenience and wide selection offered by online beer retailers.

Local special circumstances: Lithuania has a rich beer culture and a long history of brewing, which has contributed to the growth of the beer market. The country is known for its traditional beer festivals and events, which attract both locals and tourists. These events provide an opportunity for breweries to showcase their products and engage with consumers, further driving the demand for beer. Additionally, Lithuania has a relatively low beer consumption per capita compared to other European countries. This suggests that there is still room for growth in the market, as consumers continue to develop a taste for beer and explore different varieties.

Underlying macroeconomic factors: The overall economic growth and stability in Lithuania have also played a role in the development of the beer market. As disposable incomes increase, consumers have more purchasing power to spend on discretionary items such as beer. Furthermore, the country's membership in the European Union has facilitated trade and investment, creating opportunities for breweries to expand their operations and reach a wider customer base. In conclusion, the Beer market in Lithuania is experiencing growth due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The rise of craft beer, the popularity of online sales, the country's rich beer culture, and the overall economic stability are all contributing to the development of the market. As consumer preferences continue to evolve and the market becomes more competitive, breweries will need to innovate and adapt to meet the changing demands of the Lithuanian beer market.

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.