Alcoholic Drinks - Mongolia

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

Customer preferences: Mongolians have traditionally had a strong preference for alcoholic beverages, with a particular fondness for vodka and beer. This preference can be attributed to the country's harsh climate and nomadic lifestyle, where alcoholic drinks are often seen as a way to keep warm and socialize. However, there has been a shift in recent years towards premium and craft alcoholic beverages, as consumers become more sophisticated and seek higher quality products. This trend is in line with the global movement towards artisanal and locally-produced drinks.

Trends in the market: One of the key trends in the Alcoholic Drinks market in Mongolia is the increasing popularity of craft beer. This can be attributed to the growing middle class and their willingness to spend more on premium and unique products. Craft breweries have been popping up across the country, offering a wide range of flavors and styles to cater to the evolving tastes of consumers. This trend is also driven by the younger generation, who are more open to experimenting with different types of alcoholic beverages. Another trend in the market is the rise of imported spirits, such as whiskey and gin. As Mongolia becomes more connected to the global market, consumers are exposed to a wider variety of alcoholic drinks from different countries. This has led to an increased demand for imported spirits, which are often seen as more prestigious and of higher quality. The popularity of these drinks is further fueled by the influence of Western culture and the desire to experience new flavors and trends.

Local special circumstances: Mongolia's unique geography and climate present special circumstances for the Alcoholic Drinks market. The country's vast and sparsely populated landscape makes distribution and transportation a challenge, particularly in rural areas. This can impact the availability and affordability of alcoholic beverages in certain regions. Additionally, Mongolia's extreme weather conditions, with long and harsh winters, can affect the production and storage of alcoholic drinks. These factors contribute to the higher prices of alcoholic beverages in the country compared to other markets.

Underlying macroeconomic factors: The Alcoholic Drinks market in Mongolia is also influenced by macroeconomic factors. The country's economic growth and increasing disposable income have contributed to the rising demand for premium and imported alcoholic beverages. As consumers become more affluent, they are willing to spend more on higher quality products, including alcoholic drinks. Furthermore, the government's efforts to promote tourism and attract foreign investment have also had a positive impact on the Alcoholic Drinks market, as it has led to an increase in the number of tourists and expatriates in the country, who often have higher purchasing power and a preference for international brands.

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.