Hard Seltzer - Baltics

The Hard Seltzer market in Baltics is experiencing significant growth and development.

Customer preferences: Customers in the Baltics have shown a growing interest in healthier beverage options, which has contributed to the rise in popularity of Hard Seltzers. With an increasing focus on wellness and conscious consumption, consumers are seeking low-calorie and low-sugar alternatives to traditional alcoholic beverages. Hard Seltzers, with their refreshing and light flavors, have quickly gained traction among health-conscious consumers in the region.

Trends in the market: One of the key trends in the Hard Seltzer market in the Baltics is the introduction of local and regional brands. While international brands initially dominated the market, local players have started to emerge, offering unique flavors and catering to the specific tastes of the Baltics. This trend has resonated well with consumers who appreciate the connection to their local culture and flavors. Another trend in the market is the increasing availability of Hard Seltzers in various retail channels. Initially, Hard Seltzers were primarily sold through specialized liquor stores or bars. However, as the demand for these beverages has grown, they are now more widely available in supermarkets, convenience stores, and online platforms. This increased accessibility has further fueled the market growth.

Local special circumstances: The Baltics, comprising Estonia, Latvia, and Lithuania, have a relatively small population compared to other European countries. This presents both opportunities and challenges for the Hard Seltzer market. On one hand, the smaller market size means that there is a limited customer base. However, it also allows for a more targeted and focused marketing approach. Local brands can tap into the close-knit communities and leverage word-of-mouth marketing to gain popularity. Additionally, the Baltics have a vibrant and dynamic nightlife culture, with a growing number of bars and clubs catering to a young and trendy demographic. This provides an ideal environment for the growth of the Hard Seltzer market, as these venues are often at the forefront of introducing new and innovative beverage options to their customers.

Underlying macroeconomic factors: The overall economic stability and increasing disposable incomes in the Baltics have contributed to the growth of the Hard Seltzer market. As consumers have more purchasing power, they are willing to explore new and premium products. Hard Seltzers, with their premium positioning and innovative flavors, have become an attractive choice for consumers looking for a unique and enjoyable drinking experience. Furthermore, the Baltics have seen a rise in tourism in recent years, with visitors from both within and outside the region. This influx of tourists has created a demand for a diverse range of beverages, including Hard Seltzers. The tourism industry has played a significant role in introducing and popularizing these beverages among a wider audience. In conclusion, the Hard Seltzer market in the Baltics is witnessing growth driven by customer preferences for healthier options, the emergence of local brands, increased availability, and the region's unique characteristics. The underlying macroeconomic factors, such as economic stability and tourism, have also contributed to the market's development. As the market continues to evolve, it is expected that the Baltics will remain a key player in the Hard Seltzer industry.

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.