Alcoholic Drinks - Kyrgyzstan

The Alcoholic Drinks market in Kyrgyzstan has been experiencing significant growth in recent years.

Customer preferences: Kyrgyzstan has a strong drinking culture, with alcoholic beverages being an integral part of social gatherings and celebrations. The majority of consumers in Kyrgyzstan prefer locally produced alcoholic drinks, such as vodka and beer. This preference for local products can be attributed to the country's rich history of alcohol production and the pride that Kyrgyz people take in their traditional beverages. Additionally, consumers in Kyrgyzstan tend to favor products that offer good value for money, as the country's economy is still developing and disposable incomes are relatively low.

Trends in the market: One of the key trends in the Alcoholic Drinks market in Kyrgyzstan is the increasing popularity of craft beer. Craft beer has gained a strong following among younger consumers who are looking for unique and high-quality products. This trend can be seen as a reflection of global consumer preferences, as craft beer has been growing in popularity worldwide. In addition, there has been a growing demand for flavored alcoholic beverages, such as fruit-infused spirits and ready-to-drink cocktails. These products appeal to consumers who are looking for new and exciting flavors.

Local special circumstances: Kyrgyzstan has a unique geographical location, with a diverse landscape that includes mountains, lakes, and valleys. This has led to the production of traditional alcoholic beverages that are made from locally sourced ingredients. For example, the country is known for its honey production, and honey-based alcoholic drinks are highly regarded in Kyrgyzstan. The local special circumstances, such as the availability of natural resources and traditional production methods, contribute to the unique offerings in the market.

Underlying macroeconomic factors: The growth of the Alcoholic Drinks market in Kyrgyzstan can be attributed to several underlying macroeconomic factors. Firstly, the country has seen an increase in tourism in recent years, which has led to a higher demand for alcoholic beverages. Tourists are often interested in trying local products and experiencing the culture of the country they are visiting. Secondly, the Kyrgyz economy has been growing steadily, which has resulted in an increase in disposable incomes. This has allowed consumers to spend more on discretionary items, including alcoholic drinks. Finally, the government of Kyrgyzstan has implemented policies to support the development of the alcohol industry, such as reducing taxes and regulations on alcohol production. These policies have created a favorable business environment for producers and have contributed to the growth of the 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.