Spirits - Albania

The Spirits market in Albania has been experiencing steady growth in recent years, driven by changing customer preferences and local special circumstances. Customer preferences in the Spirits market in Albania have been shifting towards premium and high-quality products. Consumers are increasingly willing to pay more for spirits that are perceived to be of higher quality and offer a unique drinking experience. This trend is driven by a growing middle class with higher disposable incomes and a desire for luxury products. Additionally, the younger generation is more open to trying new and innovative spirits, leading to an increased demand for craft and artisanal spirits. Trends in the market include the rise of locally-produced spirits. Albanian distilleries have been gaining recognition for their high-quality products, particularly in the brandy and raki categories. This trend is driven by a combination of factors, including the use of traditional production methods, locally-sourced ingredients, and the promotion of Albanian culture and heritage. As a result, there has been an increase in the export of Albanian spirits to international markets. Another trend in the Spirits market in Albania is the growing popularity of cocktail culture. Bars and restaurants are increasingly offering a wide range of cocktails, attracting a younger demographic and creating a social drinking experience. This trend is driven by the influence of Western culture and the desire for a more sophisticated and cosmopolitan lifestyle. As a result, there is a growing demand for spirits such as vodka, rum, and gin, which are commonly used in cocktails. Local special circumstances in Albania also contribute to the development of the Spirits market. Albania has a rich history and tradition of alcohol production, particularly in the form of raki, a traditional Albanian spirit. Raki holds a special place in Albanian culture and is often consumed during social gatherings and celebrations. This cultural significance has helped to sustain the demand for raki and other traditional spirits in the market. Underlying macroeconomic factors, such as a growing economy and increasing tourism, also play a role in the development of the Spirits market in Albania. As the economy continues to grow, consumers have more disposable income to spend on luxury goods, including spirits. Additionally, the rise in tourism has led to an increase in the number of visitors to Albania, who are often interested in experiencing the local culture and trying traditional spirits. Overall, the Spirits market in Albania is experiencing growth due to changing customer preferences, the rise of locally-produced spirits, the popularity of cocktail culture, local special circumstances, and underlying macroeconomic factors. With these trends and developments, the market is expected to continue to expand in the coming years.

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.