Alcoholic Drinks - Czechia

The Alcoholic Drinks market in Czechia has been experiencing steady growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Czechia has a long-standing tradition of beer consumption, with a rich brewing history dating back centuries. Beer is deeply ingrained in the country's culture and is considered a staple in Czech cuisine. As a result, beer remains the most popular alcoholic beverage in Czechia, with a high demand for both domestic and international beer brands. However, there has been a growing interest in other alcoholic drinks, such as wine and spirits, particularly among younger consumers. This shift in preferences has led to an increase in the consumption of wine and spirits, creating new opportunities for market growth.

Trends in the market: One of the key trends in the Alcoholic Drinks market in Czechia is the rise of craft beer. Craft breweries have been gaining popularity in recent years, offering consumers a wide range of unique and flavorful beers. This trend can be attributed to the growing demand for premium and high-quality products, as well as the desire for more diverse and innovative flavors. Craft beer appeals to a niche market segment that values authenticity, craftsmanship, and supporting local businesses. As a result, the number of craft breweries in Czechia has been steadily increasing, contributing to the overall growth of the Alcoholic Drinks market. Another trend in the market is the increasing demand for premium and imported alcoholic beverages. With the rise in disposable income and changing consumer preferences, there is a growing interest in higher-end products. Consumers are willing to pay a premium for premium and imported alcoholic beverages, as they are seen as a symbol of status and sophistication. This trend is particularly noticeable in the wine and spirits segments, where consumers are seeking out premium brands and unique flavors from around the world.

Local special circumstances: Czechia has a strong beer culture, with a long history of brewing and a wide variety of beer styles. The country is known for its high-quality and flavorful beers, attracting both domestic and international consumers. The local beer market is dominated by well-established breweries that have been producing beer for generations. These breweries have a loyal customer base and enjoy a strong brand reputation. However, the rise of craft beer has challenged the dominance of these traditional breweries, offering consumers a wider selection of beers and promoting innovation in the market.

Underlying macroeconomic factors: The Alcoholic Drinks market in Czechia is influenced by various macroeconomic factors. The country has a stable economy and a high standard of living, which has contributed to the growth of the market. Rising disposable incomes and changing lifestyles have led to an increase in consumer spending on alcoholic beverages. Additionally, the country's tourism industry plays a significant role in driving the demand for alcoholic drinks, as Czechia is a popular destination for beer and wine enthusiasts from around the world. The favorable economic conditions and the country's strong beer culture have created a conducive environment for the growth of the Alcoholic Drinks market in Czechia.

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.