Beer - Luxembourg

The Beer market in Luxembourg has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: In Luxembourg, there is a growing trend towards premium and craft beers, as consumers are becoming more interested in unique and high-quality products. This shift in preferences can be attributed to the increasing awareness and appreciation for different beer styles and flavors. Additionally, there is a rising demand for healthier alternatives, such as low-alcohol or non-alcoholic beers, as consumers become more health-conscious.

Trends in the market: One of the key trends in the Luxembourg beer market is the rise of microbreweries. These small-scale breweries are gaining popularity among consumers who are looking for locally-produced and artisanal beers. Microbreweries often offer a wide range of unique flavors and styles, appealing to beer enthusiasts who value variety and experimentation. This trend is also fueled by the growing craft beer movement worldwide, as consumers seek out more authentic and distinctive beer experiences. Another notable trend in the Luxembourg beer market is the increasing popularity of beer festivals and events. These gatherings provide an opportunity for beer enthusiasts to sample a wide variety of beers from different breweries, fostering a sense of community and camaraderie among consumers. Beer festivals also serve as a platform for breweries to showcase their products and attract new customers.

Local special circumstances: Luxembourg's strategic location in the heart of Europe makes it an attractive market for beer producers. The country has a diverse population, consisting of both locals and expatriates, which contributes to the demand for a wide range of beer styles. Additionally, Luxembourg is known for its strong beer culture, with a long history of brewing traditions. This cultural heritage and appreciation for beer create a favorable environment for the growth of the beer market.

Underlying macroeconomic factors: Luxembourg's strong economy and high disposable income levels have also contributed to the growth of the beer market. As consumers have more purchasing power, they are willing to spend more on premium and craft beers. Furthermore, the country's thriving tourism industry has led to an increase in the number of visitors, who often seek out local beer experiences. This influx of tourists has created additional opportunities for breweries to expand their customer base and increase sales. In conclusion, the Beer market in Luxembourg is experiencing growth due to changing customer preferences towards premium and craft beers, the rise of microbreweries, the popularity of beer festivals, local special circumstances such as Luxembourg's beer culture, and underlying macroeconomic factors such as the strong economy and high disposable income levels. This combination of factors has created a favorable environment for the development of the beer market in Luxembourg.

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.