Spirits - ASEAN

The Spirits market in ASEAN has been witnessing significant growth in recent years.

Customer preferences: Customers in the ASEAN region have shown a growing interest in premium and craft spirits. They are increasingly seeking unique and high-quality products that offer a distinct taste and experience. This shift in consumer preferences can be attributed to the rising disposable incomes and changing lifestyles in the region. Additionally, there is a growing trend of consumers opting for healthier alternatives, leading to an increased demand for low-alcohol or non-alcoholic spirits.

Trends in the market: One of the key trends in the Spirits market in ASEAN is the increasing popularity of local spirits. Each country in the region has its own traditional spirits that hold cultural significance. For example, in Thailand, Mekhong, a local rum, has gained popularity both domestically and internationally. Similarly, in the Philippines, lambanog, a traditional coconut wine, has seen a surge in demand. This trend can be attributed to the growing sense of national pride and the desire to support local industries. Another trend in the market is the rise in cocktail culture. ASEAN countries, particularly Thailand and Singapore, are known for their vibrant nightlife and cocktail scenes. As a result, there is a growing demand for spirits that are suitable for crafting unique and innovative cocktails. This trend has led to an increased focus on mixability and versatility among spirit producers, who are now developing products specifically tailored for the cocktail market.

Local special circumstances: The Spirits market in ASEAN is also influenced by local regulations and cultural norms. For example, in Muslim-majority countries like Indonesia and Malaysia, there are strict regulations on the consumption and sale of alcoholic beverages. This has created a niche market for non-alcoholic spirits and alternative beverages. Similarly, in countries like Thailand and Vietnam, where there is a strong tradition of consuming spirits with meals, there is a higher demand for spirits that complement local cuisine.

Underlying macroeconomic factors: The growing middle class and urbanization in ASEAN countries have contributed to the growth of the Spirits market. As disposable incomes rise, consumers have more purchasing power to spend on premium and high-quality spirits. Additionally, the increasing urbanization has led to a shift in consumer preferences, with a greater emphasis on lifestyle and experiential consumption. Furthermore, the tourism industry in ASEAN has played a significant role in driving the growth of the Spirits market. The region attracts a large number of international tourists, who often seek to experience the local culture and cuisine, including traditional spirits. This has created a lucrative market for spirits producers, who are now focusing on catering to the preferences of both domestic and international consumers. In conclusion, the Spirits market in ASEAN is experiencing growth due to changing customer preferences, including a demand for premium and craft spirits, a focus on local and traditional spirits, and a rising cocktail culture. Local regulations and cultural norms also shape the market, as do underlying macroeconomic factors such as the growing middle class and urbanization, and the influence of the tourism 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.